Aircraft Trust CompaniesFAA Aircraft Owner Trust

How To Manage When Your Aircraft Trustee Resigns

By October 27, 2018 December 20th, 2018 No Comments

Regulations

The purchase of an aircraft and its registration is not something an owner can do on their own. It has already been discussed before that a trustee is needed to perform the entire complicated process of aircraft purchase and its registration. There are however, many other reasons why people need an aircraft trust companies. There are some lenders who only secure their loans with an FAA registered aircraft and some use an FAA aircraft owner trust for estate planning. The common cause of this is that the registration system to the FAA is based on the fact that the owner has to be a part of the U.S., either a citizen or an entity of the U.S. People from other countries can have an airplane registered under the FAA, but there are certain limitations for them and all are for the security of the U.S.

Did you ever think how the scenario would change if you get a letter from your trustee that they are leaving their role? If they aren’t responsible for the paperwork and taking care of all the formalities of your airplane registry, would you lose your registration? This scenario is explained here.

FAA registration

If you are not a U.S. citizen but want to keep your airplane registered under the FAA, the situation would be little complicated if the trustee resigns. When your trustee resigns, you will need a successor trustee. You have to also check if the change of trustee will violate the terms of your financing agreement. If so, you have to know the tenure to prevent this situation. If there is no such thing, you have to contact the lender and work jointly to agree on the successor trustee. The successor trustee will need to know everything about you under the ‘Know Your Customer’ (Patriot Act).

If things go well up until then, the new bonding of you and your trustee should be documented. You have to show the resignation of your existing trustee and then, the agreement between the successor trustee and the original one should be signed and submitted to the FAA. There will be other amendments including the security package that is not limited to the FAA registration and the changes, UCC filing amendments, other registrations and discharges.

Many people think that changing a trustee is easier when you are buying a new airplane. It is complicated to undergo the change during the ownership of the aircraft. The change may create an impact on the citizenship, financial status, aircraft registration and many other things. The professional FAA aircraft owner trust is able to assess and handle the situation well. You can rely on us at Aviation Trust Company, one of the reliable aircraft trust companies that will have your back in a crisis pertaining to the airplane ownership.

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