DVC RESALES
DVC RESALES

Go Back   The DIS Discussion Forums - DISboards.com > Disney Vacation Club > Purchasing DVC
facebooktwitterpinterestgoogle plusyoutubeDIS Updates
Register Chat FAQ Tickers Search Today's Posts Mark Forums Read


Reply
 
Thread Tools Rate Thread Display Modes
Old 10-08-2012, 11:44 AM   #1
rcchello
DIS Veteran
 
rcchello's Avatar
 
Join Date: Mar 2008
Location: Piscataway, NJ
Posts: 585

problem with added people on deed

Just read a story where a couple added a daughter to their bank account and when she died the Couple got hit with inheritance tax, even though the daughter never used the account.

This could happen with a dvc ownership. It all depends on the inheritance laws in your state. In my state inheriting from a child is exempt but this is not true in all states.

This can be added to bankruptcy, divorce, and accidentally passing on to a person you don't expect because you added person to your deed.
__________________


Bob
OKW - SSR
Next Trip - Who knows???

Just because it worked for me or worked this way in the past or is part of the great Dis lore is no reason it will work this way in the future. Depending on the CM you get, new interpretation of the rules, changes in rules, weather over the Himalayas, your results may be different.
rcchello is offline   Reply With Quote
Old 10-08-2012, 12:01 PM   #2
crisi
DIS Veteran
 
crisi's Avatar
 
Join Date: Feb 2002
Posts: 22,793

The federal exemption is pretty high, I don't think most people would have this issue. At a state level, it's still pretty high, Ohio has the lowest exempted amount, and the estate still needs to be worth more than $300k.

If you have this problem, it comes under the heading "nice problem to have". Well, except for the whole death of a loved one thing.
crisi is offline   Reply With Quote
|
The DIS
Register to remove

Join Date: 1997
Location: Orlando, FL
Posts: 1,000,000
Old 10-08-2012, 03:56 PM   #3
disneynutz


Earning My Ears One At A Time
 
disneynutz's Avatar
 
Join Date: Dec 2006
Location: North Texas
Posts: 18,755

Adding someone to your deed can cause probate if someone should pass.

Bill
__________________

disneynutz is offline   Reply With Quote
Old 10-08-2012, 06:30 PM   #4
Dean
DIS Veteran
 
Dean's Avatar
 
Join Date: Aug 1999
Posts: 31,933

Quote:
Originally Posted by rcchello View Post
Just read a story where a couple added a daughter to their bank account and when she died the Couple got hit with inheritance tax, even though the daughter never used the account.

This could happen with a dvc ownership. It all depends on the inheritance laws in your state. In my state inheriting from a child is exempt but this is not true in all states.

This can be added to bankruptcy, divorce, and accidentally passing on to a person you don't expect because you added person to your deed.
There are risks. Legally the deed change makes anyone added an owner. If they have financial issues of any sort, the ownership could be affected. Legally this would be a gift so if the dollar amounts crossed over the limits for allowable gift, it would generate tax possibilities. If there were taxes due, it would be based on the value at that time. Assuming 2 parents and 1 person being added, the total value of the contract would have to exceed $78K if I understand correctly ($13K per person gift tax) for there to be any gift tax applicable. This assumes no other gifts during the year.

The above situation doesn't make sense though, I have to question it's validity.
__________________
Dean
Dean is offline   Reply With Quote
Old 10-08-2012, 07:55 PM   #5
JimC
DVC Co-Moderator

 
Join Date: Dec 2002
Location: Orlando, Florida DVC (AKV, BCV, OKW, VGC)
Posts: 6,017
DISboards Moderator

The article mentioned by the OP is a great example of why qualified professional advice is appropriate before titleing assets. The issues go beyond inheritance tax consequences - which are different from, but often confused with, estate taxes.
__________________
WDW - All Star Movies (Fantasia), Animal Kingdom Lodge (3), Animal Kingdom Villas (Jambo House-2, Kidani Village-6), Bay Lake Towers (8), Beach Club, Beach Club Villas (9), Boardwalk Villas, Contemporary (2), Caribbean Beach (Aruba-2, Jamaica-2), Coronado Springs (Casitas-3), Dixie Landings (Bayou), Disney Institute (Villas-3), Grand Floridian (Sago Cay), Old Key West (5), Polynesian (Figi), Port Orleans, Saratoga Springs (Carousel, Congress Park, Grandstand-2, Paddock, Springs, Treehouse Villas), Villas at Grand Floridian, Villas at Wilderness Lodge (5), Wilderness Lodge, Yacht Club, Other (Cypress Harbour-6, Doubletree Castle, Renaissance WorldGate, Village [Royal Plaza, Pickett Suite])
DCL - Dream (2/11 4, 10/11 3, 2/12 4, 5/13 4, 5/14 4), Fantasy (11/13 Eastern, 10/14 Western), Magic (6/99 4, 5/05 Panama Canal, 9/08 5, 11/10 Eastern, 10/11 Western), Wonder (12/06 4, 9/09 4, 5/12 Alaska)
DL - Grand Californian (4), Villas Grand Californian (3), Marriott
Other DVC - Hilton Head, Vero Beach (6)
JimC is offline   Reply With Quote
Old 10-08-2012, 11:31 PM   #6
rcchello
DIS Veteran
 
rcchello's Avatar
 
Join Date: Mar 2008
Location: Piscataway, NJ
Posts: 585

Only a handful of states have inheritance taxes, different than estate tax. It looks like in PA you would be taxed at a rate of 4.5% for a parent inheriting from an adult child. (0% if the child is under 21). This appears to be independent of amount inherited.

I just thought it interesting that there are these unexpected consequences of retitling a deed.

I do not claim any expertise, but thought I would pass on something I read.
__________________


Bob
OKW - SSR
Next Trip - Who knows???

Just because it worked for me or worked this way in the past or is part of the great Dis lore is no reason it will work this way in the future. Depending on the CM you get, new interpretation of the rules, changes in rules, weather over the Himalayas, your results may be different.
rcchello is offline   Reply With Quote
Reply



Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

DVC-Resales.com | 1-800-550-6493 (Contact The Timeshare Store) | DVC Resale Listings

facebooktwittergoogle plus youtube itunesDIS Updates
GET OUR DIS UPDATES DELIVERED BY EMAIL



All times are GMT -5. The time now is 08:31 PM.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

Copyright © 1997-2014, Werner Technologies, LLC. All Rights Reserved.