Shared Ownership 1987 Mooney M20J

N2310D wrote:

At this time, I'm in an "association" with four other pilots. I can't
really call it a partnership because, in this case, one of the pilots is the
outright owner of the airplane. The other four have no equity in the
airplane. And it is not under any mortgage.

How do you handle insurance?

That agreement sounds like the owner is renting the aircraft to you,
without officially and legally stating that's he's actually renting.

I would think this might get interesting, in a very bad way, if the
airplane gets bent.

"B A R R Y" wrote in message
. ..
N2310D wrote:

At this time, I'm in an "association" with four other pilots. I can't
really call it a partnership because, in this case, one of the pilots is
the outright owner of the airplane. The other four have no equity in the
airplane. And it is not under any mortgage.

How do you handle insurance?

That agreement sounds like the owner is renting the aircraft to you,
without officially and legally stating that's he's actually renting.

I would think this might get interesting, in a very bad way, if the
airplane gets bent.

The owner lists all five pilots on the policy. The pilots pay an equal
share of the premium cost. The insurance company is happy with the
arrangement.

N2310D wrote:

The owner lists all five pilots on the policy. The pilots pay an equal
share of the premium cost. The insurance company is happy with the
arrangement.


That makes sense.

It's also less informal than I originally would have thought, because
all of you ARE listed together on paper somewhere.

B A R R Y wrote:
N2310D wrote:

The owner lists all five pilots on the policy. The pilots pay an equal
share of the premium cost. The insurance company is happy with the
arrangement.


That makes sense.

It's also less informal than I originally would have thought, because
all of you ARE listed together on paper somewhere.

You have to be. For a pilot to be covered under the open warranty he
has to be restricted to "causal" access to the aircraft. Rule of thumb
in the industry is that if the pilot has his own set of keys then its
probably not "casual access".

-Robert

Robert M. Gary wrote:
B A R R Y wrote:
N2310D wrote:
The owner lists all five pilots on the policy. The pilots pay an equal
share of the premium cost. The insurance company is happy with the
arrangement.

That makes sense.

It's also less informal than I originally would have thought, because
all of you ARE listed together on paper somewhere.

You have to be. For a pilot to be covered under the open warranty he
has to be restricted to "causal" access to the aircraft. Rule of thumb
in the industry is that if the pilot has his own set of keys then its
probably not "casual access".

That's how I understand it, and that's how my two owner aircraft is set
up. We both coughed up 1/2 the equity, it's registered to both of us,
etc...

However, N2310D's original description sounded a lot like a single owner
renting or bartering blocks of time to cover his ownership costs.

B A R R Y wrote:
Robert M. Gary wrote:
That's how I understand it, and that's how my two owner aircraft is set
up. We both coughed up 1/2 the equity, it's registered to both of us,
etc...

However, N2310D's original description sounded a lot like a single owner
renting or bartering blocks of time to cover his ownership costs.

Yea, you'd want to be real careful with that, both from the FAA and the
insurance side. You don't want it to look like you're renting the plane
out (even if you're only renting to a few pilots).

-Robert

If you have a partnership on an airplane with three
partners... and two partners are flying together and crash
and die, also killing some people on the ground...
The surviving partner is legally liable as the owner of the
airplane... His personal assets are on the line;home,
businesses, everything.

Incorporation and owning shares protects your assets.




"Robert M. Gary" wrote in message
oups.com...
|
| B A R R Y wrote:
| Robert M. Gary wrote:
| That's how I understand it, and that's how my two owner
aircraft is set
| up. We both coughed up 1/2 the equity, it's registered
to both of us,
| etc...
|
| However, N2310D's original description sounded a lot
like a single owner
| renting or bartering blocks of time to cover his
ownership costs.
|
| Yea, you'd want to be real careful with that, both from
the FAA and the
| insurance side. You don't want it to look like you're
renting the plane
| out (even if you're only renting to a few pilots).
|
| -Robert
|