Estate Planning for Pilots and Aircraft Owners in Florida: What Happens to Your Plane When You Die?

by Florida Estate Planning Attorney Carolina Nunez

Florida has more registered pilots and private aircraft per capita than almost any other state.

The legal question no one wants to face is: what happens to your aircraft when you die?

The answer is more complicated than most people realize. Aircraft are not like cars. They are registered with the Federal Aviation Administration (FAA), governed by a separate federal registry system, and carry financial exposures, including liability, insurance, and hangar obligations, that do not disappear at death.

Without a proper estate plan, your family could inherit a grounded plane, a lapsed registration, and a legal mess.

At The Law Offices of Carolina Nunez, P.A., Attorney Carolina Nunez helps aircraft owners, and aviation families throughout Orlando, Winter Park, Daytona Beach, Sanford, Kissimmee, Lake Mary, DeLand, and all of Central Florida build estate plans that address FAA compliance, aircraft title transfer, and aviation-specific asset protection. Call (407) 900-FIRM or click here to fill out our online case review.

Why Aircraft Require Specialized Estate Planning

Most estate plans are built for real property, bank accounts, and financial investments. Aircraft present an entirely different set of challenges rooted in federal law rather than Florida probate law.

Under 49 U.S.C. § 44107, the FAA maintains a national registry of civil aircraft. Title to an aircraft is not transferred simply by including it in a will or trust, the FAA requires a properly executed AC Form 8050-2 (Aircraft Bill of Sale) and a corresponding registration application. Without these, a beneficiary who inherits an aircraft cannot legally operate it or re-register it.

Florida’s probate process also creates timing problems. The standard Florida probate can take twelve to eighteen months under Florida Statutes § 733.810. An aircraft sitting in probate for over a year may face lapses in registration (which must renew every three years under 14 C.F.R. Part 47), hangar lease terminations, insurance cancellations, and airworthiness directive compliance issues, all of which cost money and can reduce the aircraft’s value significantly.

The FAA Aircraft Registry and Title Transfer at Death

The FAA’s Civil Aviation Registry in Oklahoma City holds title records for all U.S.-registered civil aircraft. When an aircraft owner dies, title does not automatically pass. The estate or trust must submit:

AC Form 8050-2

(Aircraft Bill of Sale) executed by a court-authorized personal representative or trustee

AC Form 8050-1

(Aircraft Registration Application) filed by the new owner or entity

Letters of Administration or Letters Testamentary These letters are evidencing legal authority to act for the estate

Evidence of trust authority

If the aircraft transfers to a revocable or irrevocable trust

The FAA does not recognize informal transfers. An aircraft left to a beneficiary in a will without proper planning will require court authorization before title can move, which is exactly why aviation-savvy estate planning is so important.

Aviation Trusts: The Gold Standard for Aircraft Ownership

For aircraft owners in Florida, an aviation trust is often the most effective tool for both estate planning and ownership structure. Aviation trusts (also called aircraft owner trusts) serve two primary purposes:

1. Citizenship Compliance

Under 49 U.S.C. § 44102, only U.S. citizens can register civil aircraft in the United States. When a non-citizen is involved in ownership, through a partnership, LLC, or inheritance, an aviation trust held by a U.S. citizen trustee allows the aircraft to remain U.S.-registered while the non-citizen benefits from ownership.

This is common in international business aviation and in estates where a foreign national heir is involved.

2. Streamlined Transfer at Death

When an aircraft is titled in a properly drafted revocable living trust, it transfers to beneficiaries at death without probate. The successor trustee simply notifies the FAA and files the appropriate transfer documents and no court involvement required.

This eliminates the twelve to eighteen month probate window that could leave your aircraft grounded, uninsured, or depreciated.

Florida’s Revised Uniform Fiduciary Access to Digital Assets Act (Florida Statutes Chapter 740) does not address aircraft directly, but Florida’s trust law under Chapter 736 of the Florida Trust Code governs how aircraft held in trust are administered, managed, and distributed, making proper trust drafting critical.

What Happens to a Hangar Lease Upon Death?

Many Florida pilots lease hangar space at airports including Orlando Executive Airport (ORL), Orlando International (MCO), Daytona Beach International Airport (DAB), Sanford Orlando International Airport (SFB), and Kissimmee Gateway Airport (ISM). Hangar leases are contracts, they usually do not automatically survive death. However, it is important to review your contract to verify that there are no survivorship clauses.

Under Florida contract law and Florida Statutes § 733.612, a personal representative has the power to continue or terminate contracts of the deceased, but this requires court supervision in formal probate.

If the lease is not addressed promptly, the airport may terminate it for breach, leaving the estate with a displaced aircraft and potential removal costs.

A well-drafted estate plan should explicitly address hangar leases through one of the following:

• Assigning the lease to a trust that continues ownership without interruption

  
  

• Designating a successor lessee in the estate plan documentation

  
  

• Including authority for the personal representative to immediately assume and continue the lease

  
  

• Pre-negotiating lease assignment rights with the airport authority

Aircraft Liability, Insurance, and the Estate

Aviation liability exposure does not end when an owner dies. If an aircraft causes injury or property damage in the period between the owner’s death and the completion of title transfer, questions of liability fall to the estate.

Florida’s wrongful death statute under § 768.21 and the Federal Aviation Act both create potential exposure for estates holding uninsured or improperly titled aircraft.

Aviation hull and liability insurance policies typically contain specific provisions about ownership transfer and named insureds. When the owner dies, most policies lapse or require notification within a set period, often thirty to sixty days.

If the personal representative or trustee fails to notify the insurer and the aircraft is damaged or causes an accident during that gap, the estate may be exposed to uninsured liability.

Your estate plan should include explicit instructions for your personal representative or successor trustee to:

• Notify the aviation insurance carrier immediately upon your death

• Secure the aircraft and restrict its use until title is properly transferred

• Review and renew the hull and liability policy under the new ownership

• Ground the aircraft if insurance lapses during the transition period

Using an LLC or Partnership to Own an Aircraft in Florida

Many pilots and aircraft owners in Florida hold aircraft through LLCs for liability protection and operational flexibility. When the LLC is part of your estate, what transfers is not the aircraft itself, it’s your membership interest in the LLC.

Under Florida Statutes § 605.0502 (Florida Revised LLC Act), a deceased member’s membership interest passes to the estate or designated beneficiary, but that person does not automatically become a voting member of the LLC unless the operating agreement expressly permits it.

If other members exist, your heir could inherit a financial interest without management rights, effectively leaving your family as a passive investor in an aircraft they cannot control.

The solution is a carefully drafted LLC operating agreement that addresses death, incapacity, buyout provisions, and heir admission rights. Combined with a pour-over will and revocable trust, this creates a complete aircraft succession plan that maintains FAA registration continuity while protecting your family’s rights.

If your aircraft ownership overlaps with digital assets or business interests, review our guide to traditional estate planning and digital asset trusts in Florida for a comprehensive framework.

What Every Florida Aircraft Owner Needs in Their Estate Plan

A comprehensive estate plan for a pilot or aircraft owner in Orlando, Daytona Beach, or anywhere in Central Florida should include all of the following:

Revocable Living Trust

Holds title to the aircraft and avoids probate. The successor trustee can immediately manage, sell, or transfer the aircraft without court supervision. See Florida Statutes § 736.0407.

Durable Power of Attorney

Allows a designated agent to manage aircraft registration, hangar leases, insurance, and maintenance if you become incapacitated before death. Governed by Florida Statutes §§ 709.2101–709.2402.

Aviation-Specific Asset Inventory

A private document maintained alongside your estate plan listing the aircraft N-number, registration status, hangar location, insurance carrier, lien information, and key contacts (mechanic, FBO, insurance broker).

Successor Trustee Instructions

Detailed written instructions for your successor trustee on how to handle the aircraft in the first thirty, sixty, and ninety days after your death: including who to call, what to file, and how to keep the aircraft airworthy and insured.

Buy-Sell or Right of First Refusal Agreement

If the aircraft is co-owned, a buy-sell agreement ensures surviving co-owners can purchase the deceased’s interest at fair market value, preventing forced sale or unwanted outsiders entering the ownership structure.

Central Florida Aviation Considerations

Florida’s homestead exemption under Article X, Section 4 of the Florida Constitution protects your primary residence from creditors in probate, but it does not protect aircraft.

Aircraft held in your individual name are estate assets exposed to creditor claims during probate.

Transferring aircraft to a trust or LLC before death is the most reliable way to limit this exposure.

Additionally, Florida does not have a state estate tax, but the federal estate tax exemption under the Tax Cuts and Jobs Act of 2017 is scheduled to sunset in 2025 (now extended through negotiation into 2026 for planning purposes). Aircraft with high appraised values: particularly turboprops, light jets, or vintage warbirds which may contribute significantly to a taxable estate.

Gifting strategies, irrevocable trusts, and GRAT structures should be evaluated with an estate planning attorney.

Frequently Asked Questions: Estate Planning for Pilots and Aircraft Owners

Do I need a special type of will if I own an airplane in Florida?

You do not need a separate will for an aircraft, but your existing will and estate plan should explicitly address the aircraft, its N-number, and how title transfer will be handled. A revocable living trust is usually more effective than a will alone because it avoids the probate delay and maintains FAA registration continuity.

What is an aviation trust and do I need one?

An aviation trust is a legal arrangement in which an aircraft is titled in the name of a trustee, typically a financial institution or an individual U.S. citizen, for the benefit of the aircraft’s true owner or beneficiaries. You may need one if you co-own an aircraft with a non-citizen, want to avoid probate, or need a clean ownership structure for FAA registration purposes.

Can I leave my plane to my children in my will?

Yes, but the transfer will require probate and FAA-specific paperwork that can take months to complete. During that time, the aircraft may be uninsured, unregistered, or subject to hangar termination. A revocable living trust avoids this delay entirely.

What happens to my aircraft during probate in Florida?

During Florida probate, the aircraft becomes an asset of the estate under the personal representative’s control. The personal representative has the authority to maintain, insure, and store the aircraft but cannot sell or transfer it without court approval unless the will grants independent administration authority under Florida Statutes § 733.609.

What is an aircraft bill of sale for estate purposes?

An AC Form 8050-2 is the FAA’s official Aircraft Bill of Sale form required for any transfer of aircraft ownership, including transfers at death. A personal representative or trustee must execute this form before the FAA will process a registration change. It is available from the FAA Civil Aviation Registry.

Does my pilot’s license affect my estate plan?

Your pilot certificate itself is personal and non-transferable, it cannot be passed to an heir. However, your flight hours, medical certificates, and training records may be relevant if the aircraft was part of a commercial operation, in which case FAA Part 135 or Part 91 operational authority may also need to be addressed in the estate plan.

Florida pilots and aircraft owners have worked hard to build something meaningful, and your aircraft deserves the same legal protection as any other significant asset in your estate.

Call (407) 900-FIRM to schedule a consultation with Attorney Carolina Nunez, or click here to fill out our online estate planning form.

DISCLAIMER: This blog post is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this content. Aviation law, FAA regulations, and Florida estate planning laws are complex and fact-specific. Consult a licensed attorney for advice tailored to your situation.