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.
Aviation Trust Company helps entities and individuals register their aircraft on the U.S. registry by meeting FAA requirements. There are numerous reasons why entities and individuals may not match the citizenship requirements for FAA airplane registration. However, we provide our clients with ownership entities and structures that help resolve these issues and allow them to register their aircraft with the FAA.
Entities and individuals use trusts for their FAA airplane registrations for a multitude of reasons. Whatever your reason may be, we are here to assist you. We maintain your title, leaving you with the peace-of-mind in knowing everything is being facilitated and handled correctly. We comply with all current guidelines for registering your aircraft with the FAA and maintaining your title. Further, we will notify you of any pressing issues that might arise.
We offer two methods by which non U.S. citizens can enjoy the benefits of owning an aircraft registered with the Federal Aviation Administration.
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.
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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 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.