Private Sale or Broker?

[dbahn]

What might be worth looking into is how the plane is titled with the FAA and the hoops to jump through and delays that your estate might have to deal with if the OP passes before it’s sold. I would assume that’s been thought through in an estate plan which varies from state to state but a good time to verify it’s correct.

Good point, and I'll need to look into that as well. I'm now the sole shareholder of the stock in a Corporation that owns the plane (formed prior to the LLC option) which was used to share responsibility for ownership status of the aircraft. My shares are held in the name of my revocable trust, and my daughter is the successor trustee. My wife opted out of that title after having to settle her mother's estate last year. She realized what a burden that can be, but I think my estate is organized to make it much easier for the successor, hopefully.

There's an awful lot to do when you find yourself in this situation. I'm glad I planned ahead for the most part.

 

[Half Fast]

I’m neither lawyer nor accountant, but if the kids inherit the plane there would be no tax, right? And if his kids then sold it, they would not have experienced any capital gain, right?

I must be missing something....

 

[Lindberg]

He’s already said the capital gain wouldn’t be much.

I missed where he said that.

 

[Walboy]

Good point, and I'll need to look into that as well. I'm now the sole shareholder of the stock in a Corporation that owns the plane (formed prior to the LLC option) which was used to share responsibility for ownership status of the aircraft. My shares are held in the name of my revocable trust, and my daughter is the successor trustee. My wife opted out of that title after having to settle her mother's estate last year. She realized what a burden that can be, but I think my estate is organized to make it much easier for the successor, hopefully.

There's an awful lot to do when you find yourself in this situation. I'm glad I planned ahead for the most part.

I think a quick call to FAA aircraft registration might be worthwhile. I found them to be pretty helpful over the phone but slow to make some changes I wanted. Determining and documenting who has the authority to act for the corporation if there are no other corporate officers could be problematic. Maybe make your daughter an officer of the corporation?

Has the corporation been filing tax returns? Liquidating the corporation and retitling in your revocable trust might be something to investigate if the sale falls through. Of course this would require a new insurance policy. Your best bet might be to sell the corporation to the potential buyer if its only asset is the airplane and related accoutrements. Sounds like your daughter could help weigh pros, cons, tax consequences (if any) of those kinds of moves.

Sorta thinking out loud.

 

[4RNB]

Here's an UPDATE and question:

As I've posted on another thread, it turns out that I have a gliobastoma, which carries a bad prognosis and my selling of the C206 has become more "urgent". I've had a lot of inquiries via Facebook and have a bona fide offer of $225,000 for it as a quick deal, and my mechanic has offered to serve as a low cost "broker" of sorts, as I'm busy with evaluation and treatment of the tumor. He thinks that a reasnable deal under the circumstances. I've got photos (.jpeg) of all of the logs since new (no damage history), I've owned the plane for about 40 years, it has a mid-time (zero time Mattituck) engine, has always been hangared and has a Garmin panel upgrade and an annual in late January. The only real downside is the original seats and upholstery, but I figured it's better to have a new buyer have a choice of options for that upgrade and factor in that cost to a sale amount

I updated my web page, which I created years ago but not to sell the airplane, so I might still tweak that a little further. I don't necessrily plan to spend the proceeds but figure it will end up in my trust for the benefit of my wife and two children. Needless to say, I've also got a ton of stuff going on medically and with other estate maneuvering while I can do that.

Question:

Does someone here with some experience in this belive that I'm foolish for going ahead with this sale? There is no deposit or contract yet and I've told the prospective buyer that it might work but that I'm still thinking about it, which I am or I wouldn't be writing this post.

Thanks for any knowledgeable advice. I hate to see it go . . .

View attachment 130500

So sorry to hear of this news. Indeed tough.
If I could help, i’d offer to stick my finger in my keister and rub it on your brain…
Article explains: https://www.newyorker.com/magazine/2015/12/07/bacteria-on-the-brain

 

[danhagan]

Late to post: I put my Tiger on Barnstormers at mid-night and received 6 serious offers the next morning before 8 am. Told the first guy if he fell through #2 was ready to step in. Used a site for funds transfer and title stuff (believe it was $300), used them when I purchased that plane as well. After the #6 serious buyer, I just changed the ad to SOLD. Delivered plane same week for inspection at FlechAIR (Tiger specialty shop) at buyer request which is where I had the plane checked when I bought it years earlier.

 

[dbahn]

Final Update:

I had two buyers (both were ready to put down a deposit) bail out after I provided pictures of mild interior corrosion. It was a light surface oxidation ("snowflakes") on the top surfaces of the skins where warm moist air rises up and condenses as it cools on the interior of the skins. Apparently, neither mechanic was concerned about the degree, and it was not any kind of airworthiness issue.

Realizing that I didn't have the time or energy I went with a broker (John Love, C206 Express) and had a deposit very quickly for an amount that exceeded what I would have accepted from the two potential buyers that backed out. I didn't have to fuss with paper work, escrow, showing the aircraft or any of the other tasks and risks of the sale. The buyer flew a pilot to pick it up and took off yesterday and arrived today in Washington state on its way to Alaska.

I hated to see it go, but there was no other choice, and I'm thrilled to see it end up in Alaska.