When is an aircraft appraisal needed?

Aircraft appraisal is typically needed in several situations.  Aircraft appraisal is essential when buying or selling an aircraft to determine its fair market value. Both buyers and sellers want to ensure they are getting a fair deal based on the aircraft’s condition, maintenance history, market demand, and other factors.  Lenders often require aircraft appraisal as part of the financing or refinancing process. The appraisal helps lenders assess the value of the aircraft as collateral for the loan and ensures that the loan amount is appropriate relative to the aircraft’s value.   Aircraft owners need to insure their aircraft against various risks such as damage, theft, or liability. Aircraft appraisal helps determine the appropriate insurance coverage and premiums based on the aircraft’s value.  Aircraft appraisal may be necessary for estate planning purposes to determine the value of the aircraft for inheritance or estate tax purposes. It may also be needed during the settlement of an estate to distribute assets fairly among heirs.  Aircraft appraisal may be required in legal proceedings such as divorce settlements, bankruptcy, or disputes involving ownership or damages to the aircraft.  Aircraft appraisal may be needed for tax purposes, such as determining the value of the aircraft for property tax assessment, depreciation calculations, or tax deductions related to business use of the aircraft.  Companies or individuals with aircraft in their asset portfolio may conduct regular appraisals to track the value of their aircraft investments and make informed decisions about buying, selling, or maintaining their aircraft fleet.