One of the main reasons for establishing a trust is that a foreign citizen, limited partnership or other party which does not qualify for FAA registration on its own can use a trust to get a valid registration for its aircraft.
An aircraft trust is basically 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.
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