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What is an aircraft trust?



Aircraft can be owned in trust vehicles, wherein one company owns the aircraft or the aircraft trust and another company or individual is the beneficiary of that trust and may be operating the aircraft. Aircraft trusts are used in a variety of situations, including when banks may have the availability of the depreciation on the aircraft and the owner wants to utilize the privacy of using a trust. The most common use of a trust is a non-citizen trust, wherein the trust owner meets the citizenship requirements for owning a US N-registered aircraft, but the beneficiary of the trust may not meet those citizenship requirements. By forming an aircraft trust that owns the aircraft and complying with those rules, it allows an opportunity for non-US citizens to operate N-registered aircraft.

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