Many estate plans are drafted by attorneys who never considered what happens to an aircraft when the owner dies, and that gap can cost heirs tens of thousands of dollars in unnecessary taxes, FAA compliance failures, and ownership disputes that ground the plane for months.
Allegis Law closes that gap by combining aviation law, estate planning, and tax strategy into one coordinated succession plan. We work with aircraft owners to structure FAA-compliant ownership transfers through trusts, LLCs, and other entities, so the right people receive your aircraft efficiently and without triggering avoidable tax consequences.
If your aircraft ownership structure was never reviewed as part of your broader estate plan, Aviation Planning at Allegis Law is the right place to start.
When an aircraft owner passes away without a clear succession plan, the aircraft does not transfer to heirs the way a bank account might.
The FAA requires proper re-registration, supporting documentation such as an affidavit of ownership, probate records, or a trust certification depending on the transfer, and proof of eligible ownership before the aircraft can legally operate. This process can ground the plane for months during an already difficult time.
Depreciation deductions taken during the owner's lifetime, such as bonus depreciation or Section 179 expensing, effectively disappear at death in some cases. Heirs typically receive a stepped-up basis in the aircraft under federal law.
Recapture exposure can still surface, however, if the aircraft was gifted before death, held in a structure that does not qualify for the step-up, or sold by the estate or heirs without proper basis planning. Coordinating this timing is part of a complete succession plan.
If your aircraft is held inside a business entity, the situation becomes even more layered. Without a plan that coordinates the aircraft transfer with the broader ownership structure, heirs and business partners may find themselves in conflict over an asset worth hundreds of thousands of dollars. A thoughtful aircraft succession plan addresses all of these dimensions before they become your family's problem.
Aircraft estate planning sits across three areas that are easy to miss individually: tax law, aviation law, and estate planning. Overlooking any one of them is costly.
Aircraft occupy a distinct category of personal property, federally registered and subject to FAA oversight, a status few other estate assets share. Transferring aircraft ownership after death requires strict compliance with FAA re-registration rules, beyond what a standard will or trust provision covers.
An outdated trust or generic estate plan that fails to account for aviation assets can create serious delays, compliance violations, and tax exposure for your heirs. Reviewing your estate plan for outdated trust pitfalls before a transfer becomes necessary is one of the more effective safeguards available to an aircraft owner.
From a tax perspective, aircraft depreciated under bonus depreciation or Section 179 carry recapture considerations that should be addressed well before a transfer. How your Section 179 vs. bonus depreciation elections interact with your estate transfer timeline is a nuanced area where proactive planning pays off.
For aircraft held by a business entity, such as an LLC, partnership, or S corporation, the succession plan must coordinate with a broader business succession planning strategy to ensure that neither the aircraft nor the entity structure creates an unintended taxable event or ownership dispute among stakeholders.
Properly structured aircraft trust planning clarifies ownership rights among co-owners or heirs and satisfies the FAA's citizenship and registration eligibility requirements, while offering incidental asset protection benefits when implemented well ahead of any liability.
Working with an aircraft ownership attorney who understands both the FAA compliance dimension and the tax law dimension gives aircraft owners a complete picture, one where regulatory compliance and tax strategy are addressed together as a single, coordinated engagement.
Map the Ownership Picture
Your consultation with Rustin Diehl begins with understanding how your aircraft is currently titled, what entity or trust holds it, and how it fits within your broader estate and business structure. This conversation surfaces the specific FAA compliance requirements, tax exposure points, and planning opportunities that apply to your situation. You will leave with a clear understanding of the risks involved and what a well-structured plan looks like for your circumstances.
Design Your Succession Plan
Based on your ownership profile and goals, Rustin will draft a succession strategy that coordinates ownership transfer documentation meeting FAA requirements, trust or entity structuring, and tax planning designed to minimize depreciation recapture exposure and estate tax liability. For aircraft owned through a business, this step aligns your aircraft succession plan with your business succession strategy, so both move in the same direction.
Implement and Stay Protected
Allegis Law handles the legal documentation needed to put your plan into effect, including trust amendments, entity restructuring, and the ownership transfer instruments required by the FAA. Rustin will advise you on when to revisit the plan as tax law evolves, your aircraft holdings change, or your business structure shifts. The goal is a plan that remains effective throughout the full lifecycle of your aircraft ownership, from acquisition through any future aircraft purchase or sale, to final transfer to your chosen successors.
If your existing estate plan predates this kind of planning, a trust tune-up may be the right first step to confirm your aviation assets are properly covered.
Aircraft succession planning is not something to leave to a generic estate plan or put off until later. The FAA compliance requirements, tax recapture exposure, and ownership complexity involved in transferring aircraft to heirs or business partners demand specific, coordinated legal counsel.
Call Allegis Law at (801) 938-4035 to discuss creating an FAA-compliant, tax-efficient succession plan for your aircraft.
©
2026
Allegis Law, LLC. All Rights Reserved.
