Aircraft Trust - Utah Bank offers many financial services, including corporate trust services. We have spent many years building our expertise in this area, particularly with aircraft and equipment related trusts. To provide you with clear, up-to-date information about these complex legal structures, we have created a list of frequently asked questions below.
An aircraft owner trust is a highly regulated method of registering aircraft in the US Federal Aviation Administration (FAA) registry. Aircraft owner trusts have been widely used and recognized by the FAA for over 50 years.
Aircraft Trust
) transfers the aircraft title to the trust. Since the aircraft is in the name of the trustee, the aircraft is registered in the name of the trustee in favor of the trustee. For example, when a customer enters into an aircraft trust agreement with a Utah bank, the bank becomes the trustee and the aircraft is registered in the bank's name.
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Aircraft trusts meet FAA registration requirements and are used by businesses and individuals. Utah bank owner trust services are available for many purposes, including for organizations and individuals who do not qualify as US citizens under the FAA's complex citizenship laws.
To clarify, US law restricts US citizens from owning aircraft. For purposes of the FAA, the term of a US citizen is unique. The requirements for US citizenship for an individual are simple, but for a business (partnership or company) the FAA has requirements for determining US citizenship. Most US companies do not qualify as citizens, for purposes of FAA registration, US citizenship for companies is defined by the percentage of ownership that a US citizen can prove controls the company. Aircraft ownership is unreliable, and even American companies cannot register their aircraft because the company's president is not a US citizen.
Trusts are also important to the airline industry because they are used to facilitate many other airline functions, including:
Yes, US law allows the creation of owner trusts when an individual or company does not meet the FAA's definition of citizenship. The FAA recognizes the trustee as the owner of the aircraft title and registration. Since the trust is issued by the FAA, the US government has a trust, a trustee, and a trustee. Aircraft owner trusts created by a non-US citizen qualified trustee are highly regulated under FAA regulations and require special conditions to put American interests first.
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As an aircraft owner-trustee, Utah Bank enters into an aircraft lease agreement, transferring operational control of the aircraft to the aircraft operator, much like leasing a car. Thus, Utah Bank does not have operational control of the aircraft, even though Utah Bank, the trustee, is listed as the registered owner in public records. The bank transfers control to the operator or lessee through a written agreement. In fact, most aircraft operated by commercial airlines are owned through trusts that are then leased to the airline.
Banks operate in a highly regulated industry and work with US government agencies to ensure the legitimacy of trust agreements, and all US laws and regulations - related to banking and the FAA - must be followed at all times. This private entity is more beneficial than being a trustee, as non-financial institutions are not subject to this strict enforcement regime.
The Bank is diligent in complying with FAA regulations and banking regulations. We continuously update our internal risk management processes to implement best practices and improve our country risk assessment as the world changes.
Utah Bank does not work with approved institutions. The Office of Foreign Assets Control (OFAC) - part of the US Treasury Department - publishes a list of individuals and companies that own or act on behalf of sanctioned countries. If the institution is approved, Bank of Utah will work with the U.S. government to freeze the account, then follow the government's next steps instructions.
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In addition, all aircraft owners must comply with FAA rules and regulations, including maintenance regulations. If the FAA finds a problem with an aircraft, Bank of Utah works with the authorities and our customer to resolve the issue and take appropriate action. This action includes termination of the aircraft owner's trust agreement and relationship.
Like most financial services, trust relationships are confidential. It is governed by US banking laws. Because the trust is issued by the FAA, the US government has the trust, the trustee, and the owner of the aircraft. However, Utah Bank is contractually and legally prohibited from sharing claims information with anyone other than the FAA unless the requesting party is a state regulator or the request is based on a lawful subpoena.
Therefore, even though some of this information is public record, Utah Bank cannot discuss actions or actions taken in our client portfolio. It complies with FAA and banking regulations.
Utah Bank is committed to the corporate trust business for a long time. Our organization has the best and most experienced fiduciary professionals in the industry, and we provide the highest quality corporate fiduciary services.
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: A legal agreement that allows a person or entity to hold its assets in the hands of a third party. An aircraft owner's trust, for example, is an agreement that allows an aircraft owner to grant title to his aircraft to a third party. Trustee
: The person or entity that creates the trust. A trustee may also be named a beneficiary. In an aircraft owner trust, the trustee or beneficiary is the aircraft owner. Trustee
: The person or entity named in the trust agreement to hold the property in trust. When a customer creates an aircraft owner trust with a Utah bank, the Utah bank becomes the trustee, meaning the bank gives title to the aircraft and the aircraft is registered in the bank's name.
By clicking the 'OK' button below, you are leaving the site over which Ahta Bank does not control, is not responsible for its claims, products or services, and is not responsible for its content, privacy policy or security settings. Trusts are the most common method used in the United States to register aircraft in the FAA registry. Under a trust relationship, the trustee gives legal title to the aircraft for the benefit of a third party, often called the trustee or beneficiary. Through a lease or similar agreement, the trustee operates the aircraft to the trustee or beneficiary.
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By law and regulation, non-US citizens are not allowed to register aircraft with the FAA. Proprietary trusts are often used to allow registration where an individual or company does not meet the narrow definition of a citizen, and are known as non-citizen trusts.
The FAA issued the U.S. A clarification of the policy on registration of trusts for civil trustees has been published in cases involving trustees and beneficiaries who are not US citizens.
The FAA and aviation task forces are directly involved with the Alliance on this policy issue. In May 2010, the FAA announced a temporary ban on non-civilian trust registrations, ending a decades-old policy that had been widely used under the law, citing safety oversight and operational control requirements. Represented the business aviation industry at public hearings and contributed to coalition comments filed with the FAA on this topic.
A German newspaper recently published a series of documents uncovered during a data breach at the international law firm Appleby. In covering the documents, some media outlets, now known as the "Paradise Papers," focused on a common structure for aircraft registration: non-civil trusts. Foreign nationals have limited options when it comes to US-registered aircraft. For this reason, an ownership trust may be the most effective solution for a November flight.
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This article will examine how estate trusts are structured, how they work, and why they are subject to US law.
Generally, an aircraft may be registered in the United States if (1) it is not currently registered under foreign law and (2) it is a United States citizen (14 C.F.R 47.3).
At first glance, this law seems to exclude foreign nationals from owning November aircraft. However. The definition of "US citizen" is broader than one might think. In fact, a US citizen (14 C.F.R. 47.7 and 47.2) includes all of the following:
3. A trustee who is a U.S. citizen and who owns a trust aircraft is (1) U.S. citizens or permanent resident aliens or (2) foreign nationals who do not have more than 25% of the trustee's influence or power of limitation. power.
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5. A corporation or LLC incorporated in the United States
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