Owning a N-registered aircraft as a non US-Citizen outside the US?

[CRAFT]

A friend of mine (non US) recently approached me and asked me the above mentioned question. Since I am a US citizen living in Europe he asked me if I would be willing to act as the registered owner of his airplane. I hold a FAA CPL myself but this kind of question was frankly never a topic for me. So I would appreciate if anybody here could provide me with some useful/helpful information in this regard. Are there any pitfalls which could bite me in the end?

This friend is a doctor, my medical examiner and he owns a Mooney for over fifteen years (N-reg) now. Previously this aircraft was registered on the name of another friend of his, also a US-citizen but this guy recently turned 85 and now he is a bit concerned that he could pass away. That's probably the reason why he asked me.

Any advise greatly appreciated, Thanks!

 

[BigZ]

A friend of mine (non US) recently approached me and asked me the above mentioned question. Since I am a US citizen living in Europe he asked me if I would be willing to act as the registered owner of his airplane. I hold a FAA CPL myself but this kind of question was frankly never a topic for me. So I would appreciate if anybody here could provide me with some useful/helpful information in this regard. Are there any pitfalls which could bite me in the end?

This friend is a doctor, my medical examiner and he owns a Mooney for over fifteen years (N-reg) now. Previously this aircraft was registered on the name of another friend of his, also a US-citizen but this guy recently turned 85 and now he is a bit concerned that he could pass away. That's probably the reason why he asked me.

Any advise greatly appreciated, Thanks!

Liability is a concern. If there is an accident, lawyers will come knocking on your door.

Otherwise... there are all kinds of trusts in the US providing that service to non-citizens. I forget what the cost was - I'm thinking like a $1000 a year or something?

Depends on the personal relationship with the dude I guess.

 

[CRAFT]

BigZ thanks for your answer! I appreciate!

Liability is a concern. If there is an accident, lawyers will come knocking on your door.

I guess probably a good idea. But if I'm doing him a favor then he should pay the insurance fee for me, I'd say!

Otherwise... there are all kinds of trusts in the US providing that service to non-citizens. I forget what the cost was - I'm thinking like a $1000 a year or something?

He probably want's to safe the money for that, I believe?! Even tough he's a doctor and makes enough money to afford his own Mooney!

Depends on the personal relationship with the dude I guess.

Well, he's basically only my medical examiner. Besides that there is no private contact. On the other hand he is the only medical examiner in the area who is FAA licensed.

 

[dustoff17]

@BigZ stated it best: liability

IF you go ahead with this and there is a Europe-style ramp check or if there is an accident or a stray bolt of lightning hits the plane while in flight, YOU are on the hook! The measly $1,000 you mention won’t even come close.
No clue what Europe laws dictate but you could face criminal charges for “Allowing” a non-licensed pilot to operate “your” plane. You would also be sitting right on top of a huge civil liability hook if the accident ends up in an injury or death.
This is one I wouldn’t even entertain!

if he will physically sign the plane over to you so you have real ownership (with him picking up the bills) AND he’s Ok with you reporting it stolen if an accident occurred, you MIGHT get away with this. Otherwise, run don’t walk.......

On the other hand, if you turn this guy down, you could “fail” your next physical. The guy has you in a tough spot.

 

[CRAFT]

Thanks for your feedback - dustoff17!

On the other hand, if you turn this guy down, you could “fail” your next physical. The guy has you in a tough spot.

Possibly?!

could face criminal charges for “Allowing” a non-licensed pilot to operate “your” plane.

He's a properly licensed pilot. He holds an FAA ATP. So he can legally fly an N-reg aircraft.

You would also be sitting right on top of a huge civil liability hook if the accident ends up in an injury or death.

That's my concern! I think liability insurance is probably a good idea! But on the other hand, aircraft owner and operator don't necessarily need to be the same person. I mean there are quite a few occasions where owners rent out their airplane to other pilots e.g. flight schools or aero clubs. And accidents or incidents happen there as well, unfortunately! This guy is flying "his" airplane for over 15 years now, so I would consider him an experienced pilot.

Once again, thanks for your answer!

 

[CFI A&P]

Thanks for your feedback - dustoff17!
Possibly?!

He's a properly licensed pilot. He holds an FAA ATP. So he can legally fly an N-reg aircraft.

That's my concern! I think liability insurance is probably a good idea! But on the other hand, aircraft owner and operator don't necessarily need to be the same person. I mean there are quite a few occasions where owners rent out their airplane to other pilots e.g. flight schools or aero clubs. And accidents or incidents happen there as well, unfortunately! This guy is flying "his" airplane for over 15 years now, so I would consider him an experienced pilot.

Once again, thanks for your answer!

If there is an accident or injury, you will be involved in the subsequent lawsuits. Even if a pilot ignores a NOTAM and crashes on takeoff into a temporary crane, the estate will file suit against everyone involved - including the manufacturer and registered owner. Basically a claymore mine of lawsuits to see what hits and pays out. Everyone is friends until the lawsuits start flying. Your friend should set up his own trust for this transaction.

 

[ILS37R]

A student of mine years ago was a Brit who had an N-registered plane in the UK. He was my student because he was converting his European PPL and adding an FAA instrument rating to operate it. IIRC he also had his plane set-up in a US trust. Wasn't that big a deal. Unless the laws have changed, I don't see why anyone wealthy enough to own and operate a personal plane in Europe would have a problem doing that.

That said, if you being the registered owner came with perks (i.e. flying the airplane for gas $$), maybe it's not a bad idea. But if you're just the person who's gonna get hit with the lawsuits if something goes wrong, not so much. At the very least I'd look very closely at how insurance is structured over there.

 

[fiveninerzero]

About 25% of the planes on our local German airfield are N-registered. Everyone here just gets a trust.

 

[TUCKnTRUCK]

I know this is like three years old, but, in the original scenario if he buys and airplane and “gives” it to you, you also stand to run afoul of IRS gift reporting and tax laws.

A trust is the only right way to do this.


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[form810]

If there is an accident or injury, you will be involved in the subsequent lawsuits. Even if a pilot ignores a NOTAM and crashes on takeoff into a temporary crane, the estate will file suit against everyone involved - including the manufacturer and registered owner. Basically a claymore mine of lawsuits to see what hits and pays out. Everyone is friends until the lawsuits start flying. Your friend should set up his own trust for this transaction.

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Well, yeah. But I'm not sure what that has to do with an N-reg outside the US. What you describe is pretty much precisely how the good ol' USA has taught the rest of the world to act.

We've still got dominion, biaatches! Going forward? Good luck. We're all counting on you (whoever "you" happens to be for any given few years)... to keep it. It'll be a miracle if we can even convince Congress to pay our bills... in the fashion of every "decent, law abiding" 'Murican.

Oh, snap, wait! We're now at about 120% private debt to GDP in 'Murica.

Ill shut up now and let y'all go and determine where that ratio stood in advance of our "wee troubles" in 2007-2009... if we can even recall events that far back in ancient history or that humanity even existed way back then.