Aircraft must be registered with the Federal Aviation Administration. The owner is the person who has the authority to operate, use, update registration and sell the aircraft. If the owner dies or becomes unable to fill these roles, then there is nobody who has the authority to do these things. In that case, the family will be facing probate so that a court can appoint a personal representative or guardian. Not only is probate costly, it is also public and subject to delays. An Aircraft Trust avoids these issues.
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[inbound_button font_size=”40″ color=”#004080″ text_color=”#ffffff” icon=”” url=”http://winbladlaw.com/wp-content/uploads/2017/05/Aircraft-Trust-Report.pdf” width=”” target=”_blank”]Aircraft Trust Quick Start and Quote[/inbound_button]
You will be the initial Trustee which means that you’re in charge. However, when you die or become unable to manage the aircraft, your hand-picked successor Trustee takes over. This person follows your instructions in the trust. The trust might have them continue to operate it for the family members; give it to an individual or charity; or sell it and divide the proceeds.
By design, a Trust avoids probate if property is titled in the name of the Trustee. Instead of the need to go to court to appoint somebody, your successor Trustee submits an affidavit and is then able to manage the property.
In order for any trust to work registered assets, like aircraft, must be properly registered. In order for an aircraft to be placed in a Trust, the FAA requires a review of the Trust and additional documents. The Trust must be designed to meet the FAA’s United States Citizenship test. Drafting a conforming Trust and providing the supporting documentation can be a daunting task for those unfamiliar with the process. Perhaps that is why this area is so neglected.
Click the N-Number inquiry. [inbound_button font_size=”14″ color=”#00ff00″ text_color=”#000000″ icon=”” url=”http://registry.faa.gov/aircraftinquiry/NNum_Inquiry.aspx” width=”” target=”_blank”]Check your N-Number[/inbound_button] Enter your number. If Trustee does not appear after your name then the FAA does not consider your aircraft to be in a trust.
Like many states, Oklahoma does not charge a transfer or excise tax when an aircraft is transferred to a revocable trust. In fact, revocable trusts are specifically exempted from state tax under Article 68 O.S. Section 6003(17).
While you are alive there is no separate tax return required.
I’m happy to work with attorneys across the country. Fill out the quick start form above and I’ll get back to you.