[WSBAPT] Charitable Donation of "Kit" Airplane

[Timothy L. Austin]

Doug,

I ran this by my brother Kevin who is an aviation attorney, and here are his thoughts:

Aviation Transaction Attorney here:

Instead of the Manufacturer of the Kit,  the assembler of the kit (the decedent) is typically listed in the FAA files and registry, and has liability as "the manufacturer".   Because of this we typically recommend that a client cut up and bury a Kit Aircraft rather than selling it or giving it away.   And they also don't usually have adequate insurance to cover their manufacturing liability after the sale.   That issue may be minimized here - depending on the current status of the estate (if it is judgment proof by now?).

As far as normal liability of a seller for an aircraft sold  - there is less to worry about when you can dissipate the risks over time.   The things the Seller did himself or had done (such as maintenance) you may be still be responsible for in a crash, and you usually have the buyer indemnify, disclaim and covenant not to sue.   Eventually the buyer performs these events themselves and your liability to third parties dissipates.  We encourage our clients to retain some sort of "tail" policy (for a period of time and if available) for any liability that may come back and haunt them after the sale.

We have been involved in gifting of experimental aircraft to museums in the past - with the caveat that they not be returned to service.   The museums are likely to have their own documents and processes for this - but they are not necessarily favorable to the donor.

There are a number of other steps that could be taken to de-commission the aircraft - but all are costly versus the return benefit

Here is some social media regarding this discussion:  https://www.reddit.com/r/aviation/comments/3qzfmn/owner_destroys_rv8_after_losing_medical_to_avoid/

Here is the EAA's<http://www.eaa.org/en/eaa/aviation-communities-and-interests/homebuilt-aircraft-and-homebuilt-aircraft-kits/next-steps-after-plane-is-built/selling-and-buying-articles/part-1-protect-yourself-the-legal-risks-of-selling-the-aircraft-you-built> take on it.

Kevin

Kevin C. Austin | Aero Law Group PC
austinkc at law.aero<mailto:austinkc at law.aero> | 425-456-1800
11120 NE 2nd Street - Suite 100
Bellevue, WA 98004 | www.law.aero<http://www.law.aero/>

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_________________________
Timothy L. Austin
Betts Austin, pllc
PO Box 53050
Bellevue, WA 98015-3050
Direct Dial:   (425) 450-3307
Fax:   (425) 450-3310

taustin at nwtaxlaw.com<mailto:taustin at nwtaxlaw.com>




From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Douglas Bratt
Sent: Friday, October 21, 2016 4:12 PM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Charitable Donation of "Kit" Airplane

Hello Listmates:

A current estate has an unusual asset - a private airplane, put together from a kit, in the 1960's.  The airplane kit company is now out of business.

The plane was actually flown by the Decedent a number of years ago (but that is not what caused his death!)  It has not been flown since he traveled from the Sacramento to this state in the airplane, those many years ago.

It is a relic with some sort of value as a possible display item in a flight museum and the Decedent's son wants to go the donation route.

I now wonder if there should not be some sort of a hold harmless agreement to be signed by the recipient, related to any injuries or deaths caused by flying the plane (or attempting to fly the plane), anytime in the future.

Your thoughts??  (and suggested forms, if any of you have done anything similar in the past).

Thank you, and have a great weekend.

Regards,

Doug Bratt

Douglas J. Bratt
Lawyer

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