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View Full Version : DVC a good way to spend inheritance...your thoughts.


jennymouse
02-07-2003, 01:57 PM
As I've mentioned before, my mother has cancer and won't be with us much longer.:( I'm considering using a portion of my smallish inheritance to buy into DVC....investing the rest. In fact, she's giving my brother and I a portion of it now so we can take advantage of the "no tax on gifts under $20K." I'm thinking this would be an excellent rememberance of her. I probably won't live to see 2042, but my DD & DGD probably will and they could share in this gift too.....I can will DVC to them can't I? I could do home improvements, buy a new car, blah, blah, but those things are just things that don't really last.

The thing is, she hasn't always understood my Disney addiction. I feel guilty for even thinking about WDW with her ill, but, coming here, DISing & dreaming about DVC, is my only escape from reality right now.

Has anyone else here ever purchased DVC with inheritance? I'd like to hear your thoughts.

vbfamily
02-07-2003, 02:17 PM
Here's MHO

I don't think you should feel guilty for thinking about a magical place like Disney at a time like this. We never did so much thinking about vacation than when my brother was dying of colon cancer-there were numerous times when he said "I wish I had gone here or I wish I had gone there"-so of course we thought a lot about it at an awful time and now make vacations a high priority because we want to experience everything we can so we don't feel that same way.

So, would you be making a mistake by spending part of it on DVC-not if it's important to you. You could invest, etc., etc. but would that give you all the happiness that 40 years of Disney vacations would? Probably not.

It all comes down to what you feel would make you happy. Could we take the money we spend every year on vacation and buy a bigger house or invest it so we have more money when we retire to travel, sure, or you can spend it now and be happy.

I'm sure if you do go ahead and do this, you'll think of your mother every time you go to WDW. Even if your Mom doesn't understand your Disney addiction, you do and it is giving you peace at a time that is pure H**L-trust me, I know. If Disney is what you need to get you through this and beyond then do it.





:)

TIdoublegaER
02-07-2003, 02:37 PM
I have to agree with vbfamily. If this is something you want and can bring you joy and happiness, then do it. There are always going to be bills that need to be paid and things around the house to be fixed, but wonderful memories are priceless, especially the ones we have of our family. While your mom may not understand your Disney addiction, she wants you to be happy and DVC could bring you years of happiness and it will remind you of your mom when you go.

AEN
02-07-2003, 02:45 PM
Exclusion

The annual gift tax exclusion, for current interests, is up to $11,000. That way she can give $22,000, in total to your and your brother, and avoid gift tax.

Can't DVC be viewed in part as an investment?

jennymouse
02-07-2003, 02:57 PM
Originally posted by AEN
Exclusion

The annual gift tax exclusion, for current interests, is up to $11,000. That way she can give $22,000, in total to your and your brother, and avoid gift tax.

Can't DVC be viewed in part as an investment?

Opps, we thought it was $20K each. I'm glad you told me this. It will actually be $12K each. Would we have to pay the tax on the whole $12K or just the $1000 overage?

I think it's an investment too. Plus, my mother has been such a home body the past 10 or 15 years. Afraid to fly, afraid of the highways, etc, that my father hasn't gotten to go anywhere really. It would be wonderful to take him to WDW and Vero and some places.

yesdisneyfool
02-07-2003, 02:59 PM
Sorry to hear of your mothers failing health.

How's this, bring a picture of her (the way you want to remember her) and place it on the table when you come "Home". This way she'll be there in spirit with you and you and your family can remind yourselfs of the nice gift.

jennymouse
02-07-2003, 03:05 PM
Originally posted by yesdisneyfool
Sorry to hear of your mothers failing health.

How's this, bring a picture of her (the way you want to remember her) and place it on the table when you come "Home". This way she'll be there in spirit with you and you and your family can remind yourselfs of the nice gift.

I was thinking of doing this too! I'd been hoping to take the family during Christmas this year, because of it being the first year without her. I don't know if it will happen or not, but I was thinking of a small 2ft tree using her jewelry as ornaments. I think I got that idea off these boards somewhere.

TheRustyScupper
02-07-2003, 03:32 PM
You pay tax on amounts over $11,000 per child.

Noelle
02-07-2003, 03:33 PM
In addition to the annual $11,000, I know that you can gift a one-time large amount as a gift without taxes. My Grandmother gave my Mom a large one time gift. I know it was over $100,000 and it was tax free. You may want to talk to a Tax Accountant to get the exact limit.

imgoingtodisney
02-07-2003, 03:56 PM
Nov 01 we bought 170pts, financed $8,000ish
Then in Jan 02 DHs grandparents gifted him with $10,000
We took $4-5,000 of it and paid towards the principal.
DH figures this way he will think of his grandparents well into our 80s

disney4me4ever
02-07-2003, 04:18 PM
Jennymouse~

I'm so sorry to hear about your mom's health. My sisters and I went through that with our mom about 18 months ago. My mom also gave each of us a small inheritance. I immediately thought of DVC and discussed my potential plans with her while she was alive. She loved the idea.

As children, we were at WDW the very first Christmas it opened and many, many times after that. She thought the idea of "a gift of a yearly vacation" was a great idea. That no matter how busy I got during the year, for at least a week, I would take time out and relax. My DH and I are going "home" for the first time in a few weeks and it will be so special knowing that it is a gift from my mom. DVC also made sense to me, because no where is there more a spirit of "family" than at WDW.

Go for it!
Nancy :earsgirl:

nisiemouse
02-07-2003, 04:22 PM
Jenifer, I agree with everyone. DVC will give you years of memories and something to pass on to dgd. Dh sometimes can't understand my fascination with disney. Growing up we were never able to vacation (except for one trip to disney the year it opened) and although my mom did a great job raising us all by herself and we had everything we needed I really want those family memories of our yearly trip to "home". I can understand what a difficult time this is for you and your need to "escape" at times. Take care. Denise

Poorman
02-07-2003, 04:33 PM
She can also gift her grandchildren,and you father can gift also. If it is done correctly no taxes have to be paid. Regards,Rich

dcfromva
02-07-2003, 04:38 PM
jennymouse,

First of all, I'm so sorry that your Mom is sick.

Second of all--ref inheritances: I received a small inheritance from my Grandmother which I wanted to save for something very special--so, in the meantime, I invested it in the stockmarket.....
You know where I'm going with this--have you heard the joke How do you make a small fortune in the stock market? (Answer--start with a large fortune)... Long story short, with investing the $$, I have less to show for it than when I started. Definately not the special thing I wanted to do. If you love Disney, you will have years of enjoyment and it will be a special reminder of your Mom. I think it would be a nice thing to do.

Third of all--regarding the gift tax. The person giving the gift is the one who pays it. If the gift giver goes over the annual limit, there is a special form that has to be filled out at tax time. This amount is declared and counts towards the limits that are exempt on the estate (this was just raised--I can't tell you, what it is, though). If your Mom doesn't have a large estate, this probably wouldn't be big deal--except in terms of complexity when filing her 2003 taxes. It would be best to seek the advice of an attorney on this. Maybe your Mom was thinking of giving a gift to you (11,000) and a gift to your spouse (11,000) and a gift to your brother (11,000) and and a gift to your brother's spouse (11,000) ...because the tax free amount is per person....
Here is a link to the IRS web site which explains gift tax a little more (http://www.irs.gov/businesses/small/industries/article/0,,id=98989,00.html)

Another link which explains estates and gift taxes (http://www.irs.gov/businesses/small/industries/article/0,,id=98968,00.html)

My heart goes out to you at this very difficult time....

-DC :)

DVCajun
02-07-2003, 05:33 PM
I remember reading your trip reports, and you going home to sad news. I'm sorry. :(

As far as who you will leave your DVC interest to (if you decide to go ahead with it), I'd recommend leaving it to your DGD, based on your daughter's behavior on your last trip. :teeth: She doesn't deserve it!

Best of luck with your decision. I can say this-- no Disney nut ever regrets becoming a DVCer. :)

BCVOwner2002
02-07-2003, 05:33 PM
I have to agree with everyone else who has responded before me.

Sorry to hear about your mom but what a nice gesture. Even though she doesn't understand your fascination with Disney, it is a special place for you and what better way to remember her. The stock market is too risky. You or your children will have 40 wonderful years of vacations in a magical place.

Don't think twice about it.

Annmarie

WDWLVR
02-07-2003, 05:51 PM
Jenifer,

I was in your shoes 5 years ago, the only difference is my mom understood the addiction because she had it too.

She was going to treat DH and I to a week at the Poly with her in May of '97. A month before the trip she was diagnosed with Lung Cancer and I knew she would never go back to WDW. The first time we had gone together was in 1976 and I was 19 years old. We walked into the Magic Kingdom and she started crying. When I asked why she said that when I was a baby and she split from my Dad she thought that being a single mom she would never be able to take me or my brother to Disney (Disneyland at that time). Now we were making her dreams come true. I had shared a number of trips with her from 1976 to 1997 and so the first thing I did when I found out was bought her a brick. At that time they were being layed by the Poly (her favorite resort). She is now fowever at the Poly.

We lost her in October of '97. October of '98 we went for a week at the Poly. Since she died the day before my wedding anniversary we wanted to be someplace special to remember both events - where else but Disney World. I layed a flower on her brick that morning.

October of '99 we finally had all the financial stuff taken care of (sold her condo, payed estate taxes, etc.). Took my in-laws on a Disney Cruise to thank them for all they had done for my mom when she was alive. Met a man standing in line for Disney Dreams who gave me my first real insight into DVC (I had read trip reports from others and my curiousity was peaked and he answered my questions).

Jan. of 2000 we took some of my inheritance and paid half down on 300 points and did a 1-year finance on the rest. I know that my mom would have loved coming home to the Boardwalk with us, would have loved sailing DCL with us, and would have loved to share any of the adventures we have ahead for the next 40 years (or however many God will give us). I know that I am at peace and have her always in my heart when I am there.

Go with what is in your heart and I know it will make your Mother happy.

My sincere condolances on what you are going through. It is a tough road. Know this - at least you have the time to say good-bye. Many others don't have that. Peace to you and your family.

gracelrm
02-07-2003, 09:35 PM
I lost my mother to lung cancer in 1996. We joined DVC in 2001 using some money that I had received from a trust fund. I felt a little guilty at first using this for something that seemed indulgent, but I wondered what my mom would think of it. My mother loved to travel, and dad liked to be home by dark! So she never got to travel much. They retired with hopes and dreams of traveling and after only one trip with my dad to Alaska and a few trips to Gulf Shores, she was diagnosed with cancer. I know that she'd be happy with our decision because we've made spending time with family a priority and my three children will have years of family vacations ahead of them because of this. And to reiterate what several others have said, I think daydreaming of future trips to WDW is a great therapy for you - I know it is for me!

Johnnie Fedora
02-07-2003, 09:53 PM
YES

Cruelladeville
02-07-2003, 10:38 PM
When I lost my mom several years ago, she had said in her will that I was to get a specific amount of money for breast implants. From the time I was a teenager, I felt self conscious about that, and she had decided to give me money so that I could have the breasts I had always wanted. Well, a funny thing happened--when I finally could have what I had wanted, I found that I really didn't want it at all. I really wondered if I should take the money or not, but I decided that she wanted to give me what she thought I really wanted, whatever it happened to be. I took the money, and bought into DVC. I still feel a little guilty about it sometimes, but at least DVC will never sag!:p

Brikate
02-08-2003, 01:00 AM
Originally posted by jennymouse
Has anyone else here ever purchased DVC with inheritance? I'd like to hear your thoughts.

We have done this very thing.

Growing up, my parents were very selfish (well, my father mostly, but my Mom didn't do much to intervene on our behalf) with their time, money and vacations. Fast forward ... we bought into DVC in 2000 as we LOVE taking vacations with our 4 kids and 3 grandbabies and wanted to share the best with them as we knew it would be a struggle for them to do anytime soon. My father died in 2001 and my Mom, who has been struggling with Alzheimer's for the last 8 or so years was incapable to deal with anything. We (myself, my DH & 1 of my 3 sister's) are her daily caretakers. Right after my father died, we had their lawyer set up an irrevocable trust to protect their assets and gift out to us $10,000 a year. The first year, we looked at it as a great windfall, paid on our DVC and we also felt somewhat guilty. Then another year (and now almost 2) goes by and we don't feel so guilty anymore. We even doubled our points :) She's happy daily and when we take her on vacation, and we're happy that we are able to share this with her and our kids.

My sisters' monies are all gone and we will have our little inheritance for the next 39 years!

ncligs
02-08-2003, 08:58 AM
Jenifer,
We did the same back in 1999 when my father passed away.He always enjoyed going to Florida through DVC(sister was DVC member first).He loved having the family together in a GV at OKW.
We bought into DVC before he passed away. Then we figured after selling his house and splitting it among 5 kids, we decided to pay off our original contract (230-OKW) and add on 70 more points at OKW, and add-on 200 pts at VB. Every time we are at a DVC resort we always think of the good times and "memories" we had with our parents(mom passed in 98) and I wouldn't trade them for any material item.
Now 4 members of our family are DVC members.We also know our 2 kids will have a lot of memories and eventually it will be theres some day(if we don't make it to 2042 ;) .
So yes I think it is good way to use the inheritance, and now we have 500 pts every year(unless we add on;) ) and only have the dues as an expense.http://www.wdwinfo.com/sites/family/biggthumpup.gif

Disney Doll
02-08-2003, 09:49 AM
My DH and I just did the same thing. We lost both of his parents in 2001, and we just bought a 230 point contract at OKW. It is our 2nd contract,.as we had already had a 200 point contract at OKW which we had purchased oursleves in 1997.

We kind of told ourselves that even though maybe our in-laws didn't "understand" our WDW addiction, they understood that WDW is where we liked to go to relax and enjoy oursleves. My in-laws were always people who enjoyed life. Think how nice it wil be to think of your other every time you are at WDW, knowing that some of the money you inherited from her makes it possible to go to a place that makes you happy. Most parents want us to be happy, even if they don't always "understand" it.

It sounds like you are being sensible...taking a little of the money to do something you enjoy and then investing the rest. I'd say go for it.

jennymouse
02-08-2003, 10:00 AM
You folks and your stories have moved me to tears. Thank you for all your kind thoughts. I don't feel nearly as guilty for thinking of DVC or WDW now! And thank you for all the info & links about gift tax, etc. I love the people on the DIS!

DVCajun, I believe you read my mind! I'll definately be willing my points to my DGD instead of DD as I've still not (and it's unlikely I ever will) gotten over DD's behavior on that trip.

Thanks again. Hopefully, within the next couple weeks you'll all be welcoming me home!

AEN
02-08-2003, 11:12 AM
Same as has been expressed, sorry to hear about your mother

Gift Tax and Unified Credit

Without getting into a lot of detail. You do not pay tax on the gift. The person providing the gift would and generally it is on the excess. There is a potential to avoid paying gift tax on amounts given above the, current, $11,000 and that ties into the "unified credit". Unified as it relates to estate taxes. All of this is addressed on a gift tax return. It gets complicated and I recommend that if you are considering this, and other gifts, that you seek advice of a CPA and/or attorney.

With that said. After you have figured it all out, I am sure that you will enjoy your first vacation to DVC even more. As I will be doing in May right after tax season.

crisi
02-08-2003, 11:15 AM
My inheritence story:

A number of years ago, a distant relative of my husband's died and left us money. Unlike the stories here, where DVC will always bring memories of your loved ones, this was a distant relative I'd never met, and my husband had only met once.

We paid for our son's adoption. We also paid down debt, bought a new car (mine was in need of replacing) and stuck money aside for another new car. We didn't do anything impractical with the money at all.

But it did change our lives to the point that when the opportunity to purchase DVC came along, we were in the position to do it - had the cash on hand (since we had no more credit card bills, car loans, or student loans, we've been able to maintain an adequate savings account).

My advice on inheritence or other windfall cash - use the money to change you life permanently. I'd consider DVC a permenant life change. Its something that you will have and be ableto use for a very long time.

Lesley
02-08-2003, 08:36 PM
A gift like this was how we joined DVC. A relative whose spouse had passed away gave each relative and spouse (and their children) a gift, avoiding the gift tax.

After a little debate (car? house downpayment? bills? DVC?) we decided to pay off bills with half and use the rest for DVC. We're very glad we did it! We thought this would be a great way to remember her gift to us as well.

Zurg
02-08-2003, 10:03 PM
I bought DVC with an inheritance.
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My kids!. LOL

Pumbaa_
02-08-2003, 11:45 PM
Thanks for all the stories, please pass the tissue. They are very touching stories.

Part of my points will be an inheiritance. I bought at BVC (a50 pts) in the spring. I kept talking and talking about it and my parents starting asking questions. Okay Dad actually started with he is to old to buy a timeshare (he is 64).

Well, it was my parents 40th anniversary in September and Dad bought 70 points for Mom for a gift. They did an add-on to my contract. So they have the use of the points as long as they are able and someday (not soon!!!), we will have 220 points to use.

We were there in January with them and we had so much fun. They spent 5 nights in a studio at BCV and then moved to the all stars for 3 nights. They had a wonderful time! They are talking about letting my brothers take turns using hte points and they will stay at the all stars. (They really like it there, go figure ;))

I always tell my parents to spend my inheiritance. If they want to share some of it with me now, that is great. They are having a blast in their retirement and spend half the year in sunny florida and have in CT. So someday, my inheiritance will be points abd I could not think of a better thing to receive from my parents. I have been to Disney with them every year since '99 and I hope it continues for many more years to come.

So buy guilt free and when you are there, think how happy your mom's gift has made you.
God bless you and your dear mother!