FAA Aircraft Registration
The advantages to FAA registration are myriad, perhaps the most significant being the maintenance obligations. Unlike many European authorities the FAA places the onus for aircraft safety on the operator. this means that many of the bureaucratic requirements imposed by European authorities can be dispensed with, thereby reducing the cost of ownership.
FAA ownership also opens a world of supplementary type certificates giving you more freedom to upgrade or customise your aircraft at much more affordable prices.
Here at Streamline Aviation we can enable you to take advantage of these benefits through an ownership trust.
How does it work?
Under US law all aircraft registered with the FAA must be owned by an American citizen or corporation. However non-US citizens are still able to take advantage of the benefits of FAA registration by establishing an aircraft trust with a US citizen acting as trustee.
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. The trustee acts for the beneficiary and the aircraft is titled and registered in the name of the trustee. This relationship is often called an owner trust because the benefit of the trust and all assets go to the true owner of the trust. It is important to note that this structure has been approved by the FAA and, because of the documents which are filed, the FAA is well aware of the identity of the beneficiary.
The beneficiary owns the beneficial interest in the trust and the trustee owns the aircraft on behalf of the beneficiary. The trustee is the titled and registered owner of the aircraft, but the beneficiary has the right to dissolve the trust at any time for any reason. Title to the aircraft can be transferred at any time from the trustee to any party designated by the beneficiary, including itself, via an FAA form bill of sale. Pursuant to the terms of the trust agreement, the trustee cannot sell the aircraft without the beneficiary’s direction.
At Streamline your peace of mind is our priority and before establishing a trust you will meet with the primary trustee of your aircraft and as long as the trust is in effect you will be able to contact them at any point.