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AIRCRAFT OWNER TRUST SERVICES

 
 

AIRCRAFT TRUST  -  VOTING TRUST  -  FAA N-NUMBER REGISTRY

 
 
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Aircraft Trust

 

When an individual or company does not meet the narrow citizenship definition, Aircraft Trusts / Owner Trusts are often used to allow for registration, and are referred to as non-citizen trusts. Through law and regulations, non-U.S. citizens are generally not allowed to register aircraft with the FAA.

 

The trustee holds legal title to an aircraft for the benefit of a third party - trustor or beneficiary. Through a Lease / Operating Agreement or similar arrangement, the trustee provides the aircraft to the trustor or beneficiary to operate.

 

Since the trustee will be the registered owner of the aircraft, the trustee will need to be named on the aircraft insurance. It is obviously, all parties will want the insurance coverage to be effective and in the proper form when the aircraft is placed in trust, and it is recommended that the beneficiary contact its insurance provider and give the proposed certificate and endorsements to the trustee for review at least several days prior to the closing.

 

A trust can be used to maintain FAA registry for a short, long or indefinite period of time. Aircraft Trust commonly used to export an aircraft or to have refitting done before export. All correspondence from the FAA, including airworthiness directives, will be sent to the trustee, which will then forward the information to the beneficiary. A qualified trustee should be very responsive to the needs of the trust beneficiary.

 

Ownership of aircraft through Aircraft Trust. What does it means for both involved parties? 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. We assist our international clients by placing title to the aircraft with a trustee.

AIC JETS Corporation, known as AIC JETS Corp., holds title to the aircraft in its name, solely as trustee of a trust created for specifically for the clients, who are the named grantors/beneficiaries of the trust. At the same time, AIC JETS Corporation signs an Operating Agreement with the trust beneficiaries. Our clients retain full operational control of the aircraft pursuant to executed and FAA recorded operating agreements.

 
 

FAA Aircraft Registry Eligibility

 

An aircraft is eligible for U.S. Registration if it is not registered in another country and it is owned by:

 
  • An individual who is a United States citizen;
  • A partnership each of whose partners is an individual who is a U.S. citizen;
  • A corporation or association:
    • Organized under the laws of the U.S. or a State, the District of Columbia, or a U.S. territory or possession, of which the president and at least two-thirds of the board of directors and other managing officers are U.S citizens, and in which at least 75% of the voting interest is owned or controlled by persons that are U.S. citizens;
  • An individual citizen of a foreign country lawfully admitted for permanent residence in the U.S.;
  • A U.S. governmental unit or subdivision;
  • A non-U.S. citizen corporation organized and doing business under the laws of the U.S. or one of the States as long as the aircraft is based and primarily used in the U.S. (60% of all flight hours must be from flights starting and ending within the U.S.).
 
 

Who may register aircraft in the US:

 
  • To register an aircraft in the US, the owner must be a citizen of the United States, with few exceptions.
  • The definition of a “citizen of the United States” is limited to: an individual who is a US Citizen; a corporation or LLC formed in the US, but only if: the president and at least two thirds of the board of directors or managing officers are US Citizens, the corporation or LLC is under the actual control of US Citizens, and at least 75% of voting interests are held or controlled by US Citizens; and a partnership in which all of the partners are individual US Citizens.
 
 

FAA Aircraft Registry for non-US Citizens:

 
  • A legal structure available to non-US Citizens who wish to register their aircraft with the FAA N-Number. US law allows aircraft registration through an owner trust, often called a non-citizen trust or NCT.
  • The trustee must be a US Citizen as defined by the FAA, but a non-US Citizen may hold all the beneficial ownership in the trust.
  • The non-US Citizen beneficiary may legally operate the aircraft under an operating agreement or operating lease and will hire the flight crew, pay all expenses and be responsible for all maintenance.
 
 

What you will receive:

 
  • FAA aircraft owner trust allow both U.S. citizens and non-citizens to purchase and register aircraft with the U.S.
  • Registration of Aircraft with the U.S. Federal Aviation Administration (FAA) by appointing AIC JETS Corporation as your Aircraft Trustee.
  • The aircraft owner trust holds the title to the aircraft and registers it with the FAA for the exclusive use of the beneficiary/purchaser, who continues to operate and maintain the aircraft.
  • We also offer custom registration numbers and title searches.
 
 
Aircraft Trusts | Owner Trusts | Aircraft Owner Trustee | Aircraft Trusts AIC JETS Corporation | Aircraft Owner Trust | Aircraft Trust Services | FAA Aircraft Owner Trust | AIC JETS Corporation - Group of Companies
 
 
 

As your corporate trustee, we will provide the following services:

 
  • FAA-approved forms of aircraft owner trust and operating agreements.
  • Preparation and filing of FAA registrations and re-registrations.
  • Two-year re-registration monitoring service.
  • Trust administration services.
  • New entity formation and Registered Agent services.
  • Coordination with legal advisors, title companies, lenders, and other interested parties.
 
 
Aircraft Trusts | Aircraft Owner Trustee | Owner Trusts | Aircraft Trusts AIC JETS Corporation | Aircraft Trust Services | FAA Aircraft Owner Trust | Aircraft Owned under a Personal or Family Trust
 
 
 

Why Choose AIC JETS Corporation as your corporate trustee:

 
  • Independence: We are not affiliated with any lending institution, law firm or investment advisory firm, minimizing the likelihood of conflict of interest.
  • Flexibility: We are free of the layers of bureaucracy that tie the hands of many larger institutions. We will consider every transaction.
  • Responsiveness: When you contact a member of the team, you can expect a quick reply. Our clients know they can count on us when time is of the essence.
  • Expertise: We work close with officials who have provided customized solutions for more than two decades. Their staff of seasoned attorneys, certified public accountants, corporate trust administrators and finance professionals are ready to serve you.
  • Stability: As a privately held company, our view of risk does not fluctuate with market conditions. Our focus is on the long term, not quarter to quarter. We are backed by one of the largest service companies in the industry.
  • Capability: We are one of the independent provider of solutions for the structured finance, corporate restructuring, real estate, domestic and international tax, private placements. Our service offerings span trust and agency, special purpose vehicle management, and independent director services.
 
 

The Policy Clarification also requires that within two business days a trustee (and thus the trustor or end operator of the aircraft) must be able to provide the FAA with the following information:

 
  • The identity of the person normally operating, or managing the operations of, the aircraft.
  • Where that person currently resides or has its principal place of business.
  • The location of maintenance and other aircraft records.
  • Where the aircraft is normally based and operated.
 
 

Within five business days, the trustee must be able to respond to FAA requests for more detailed information about the aircraft and its operations, including the following:

 
  • Information about the operator, crew and aircraft operations on specific dates.
  • Copies of maintenance and other aircraft records.
  • The current airworthiness status of the aircraft.
 
 
Aircraft Trusts | Aircraft Owner Trustee | Owner Trusts | Aircraft Trusts AIC JETS Corporation | Aircraft Trust Services | FAA Aircraft Owner Trust
 
 
 

Included In the Cost for Aircraft Trusts Title

 
  • Formation of Corporation including Corporate Book, Seal, Certificate of Incorporation, Organizational Minutes, Bylaws, etc. (including filing fees and costs). If it advised by an attorney and financial advisor.
  • Drafting and/or review of the Aircraft Purchase Agreement.
  • Drafting and recording of the Trust Agreement.
  • Drafting and recording of the Owner-Trustee Affidavit.
  • Drafting of Aircraft Lease/Operating Agreement.
  • Drafting of Flight Wire/Declaration of International Operations (if necessary).
  • Investigation and preparation of OFAC Agreement and Federal KYC compliance.
  • Aircraft Registration under the FAA N-Number Registry
  • Trustee Fees and Costs through December 31.
  • Oversight of closing and processing of documents as necessary with the FAA.
  • All FedEx/courier charges arising from closing.
  • Annual Fee for year of incorporation (Annual Charges owed each January 1).
 
 

Download Aircraft Owner Trust Services Guide

 
 
 
 
Aircraft Trusts | Aircraft Trustee | Aircraft Owner Trustee | Owner Trusts | Aircraft Owned Under Aircraft Trust | FAA Aircraft Owner Trust | Aircraft Trust Services | AIC JETS Corporation Aircraft Trusts
 
 
 

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Last revised on October 10, 2019.

 

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