We provide Trust services to the aviation community. Aviation Trust offers our clients a customer focused, and cost effective package, in which to register their private and corporate aircraft.
The Federal Aviation Administration’s complex citizenship rules can make registration difficult to navigate, and seemingly unattainable. As an experienced aircraft trust company, we will ensure that you meet FAA requirements, stress free.
Learn why you should put your confidence in Aviation Trust Company.
There are multiple reasons why an aircraft owner would need to set up an aircraft trust or consult with aircraft trust companies. Whatever your reason may be, Aviation Trust Company offers multiple solutions to fit your individual needs.
Are you looking to register an airplane in the U.S. on the Federal Aviation Administration (FAA) Registry, but don’t meet the citizenship requirements? Aviation Trust Company offers two methods by which non-U.S. citizens can enjoy the benefits of owning an aircraft registered with the FAA: the Voting Trust and the Owner Trust.
United States law requires that all aircraft must be registered under the name of a U.S. entity or individual citizen. The Federal Aviation Administration (FAA) has recognized the use of Owner Trusts to facilitate N-registration, whether the beneficiary of the trust is a U.S. citizen or not . To create an FAA aircraft owner trust , the trust beneficiary must transfer legal title to Aviation Trust Company, which qualifies as a citizen of the United States of America. Aviation Trust Company will act on behalf of the beneficiary, and the aircraft will be titled and registered in the name of Aviation Trust Company, as Owner Trustee.
As a Voting Trustee, at least 75 percent of the shares of the domestic (U.S.) aircraft-owning corporation, or limited liability company that does not otherwise qualify as a citizen of the United States of America, will be placed in the care of Aviation Trust Company. This will insure that the corporation legally qualifies for the FAA aircraft registration.
Frequently Asked Questions
An aircraft trust is a relationship where a trustee owns an aircraft on behalf of an entity or individual. The trust is established as an extension of the true owner, also called the trustor or trust beneficiary.
A common reason for establishing a trust is that a foreign citizen, limited partnership, or other party can use a trust to get a valid FAA registration for its aircraft that it would not otherwise qualify for due to strict FAA regulations.
A trust is the most simple and cost efficient way to necessitate the needs of foreign parties and investors to own and/or operate aircraft being used or leased within the U.S. FAA records would reflect Aviation Trust Company as the titled and registered owner, rather than the actual owner or beneficiary. This makes determining the true owner of an aircraft by a third party more difficult.
The true disadvantage depends on the aircraft’s true owner and the comfort level they have with the trust agreement.
Aviation Trust Company would be placed between the true owner and their asset. The aircraft will be registered to Aviation Trust Company and all correspondence from the FAA about the aircraft will be sent to Aviation Trust Company and forwarded to the true owner.
Aviation Trust Company works hard to be very responsive to the needs of the true owner, making the relationship beneficial for all parties.
Aviation Trust Company will be the titled and registered owner of the aircraft on behalf of the beneficiary. You would own the beneficial interest in the trust and have the right to dissolve the trust or transfer the title to any party designated by the beneficiary, including itself, at any time and for any reason.
In short, the answer is yes. Through an operating or lease agreement with Aviation Trust Company, control of the aircraft will be returned to you or any operator designated by you. You or your designated operator will be obligated to insure and maintain the aircraft in accordance to FAA requirements.
Yes. A trust will not negatively affect your ability to get financing for an aircraft. In some cases, it may actually enhance your ability to gain financing.
This type of trust is a tax-neutral entity, and should have no influence on your taxes. Any income of the trust will flow directly to you (owner of the beneficiary), as though the trust were non-existent. All taxes that would otherwise have to be paid will still be owed and cannot be avoided through the establishment of a trust.
An LLC is an option for those that are not comfortable with forming a trust, however, for many people, it is the simplest and most cost-efficient way to obtain proper FAA registration.
Thousands of aircraft are registered with the FAA through a trust because they are a very flexible and readily accepted vehicle.
A trust is simple to establish and can be completed in a couple of days; it can be dissolved just as quickly and easily.