Owning an aircraft is such an amazing experience that you can relish over time. What can be more exciting than purchasing an aircraft? Probably the first flying experience! But some aircraft owners have said that it is the worst decision they have ever made in terms of registration. These aircraft owners likely did not know about the aircraft trust companies that are here to make the entire experience better and smoother.
Many problems related to aircraft result from improper registration. An aircraft trust company simplifies this process, as they register the aircraft in the company name but in your interest. You are still the owner of the aircraft. The faa aircraft owner trust involves a few steps, as explained below.
To be eligible to register an aircraft in the U.S., the owner must be:
- A U.S. citizen.
- A partnership in which each partner is a U.S. citizen.
- An association or corporation organized under U.S. laws. The president and a minimum of two-thirds of the board of directors must be U.S. citizens, among other requirements.
- A citizen of another country legally admitted as a permanent resident of the U.S.
- A non-U.S. citizen corporation operating under U.S. laws. The aircraft must be used primarily in the U.S.
If you do not meet any of these requirements or are a resident of a foreign country, and the FAA laws prohibit you from owning an aircraft, aircraft trust companies can help you. The aircraft owner trust is a policy in which the trustee meets all the requirements of the FAA to register the aircraft on behalf of the original owner. Thus, the entire process becomes hassle-free, requires less paperwork and is more convenient.
How does the faa aircraft owner trust work?
- An aircraft is placed in trust, and its title is registered to the trustee. The owner is still the primary beneficiary and owns an interest in the trust.
- All FAA correspondence goes to the trustee, who forwards it to the beneficiary.
- There is a lease or operating agreement created between the beneficiary and the trustee that gives the right to operate the aircraft to the owner.
- The operator is expected to maintain, insure and operate the aircraft according to the FAA rules and regulations.