A Question About Names On The Contract

[StitchsDemise]

We are looking at buying ~120 point contract with my in-laws and basically splitting the costs 50/50. Is it possible to have all of the names on the contract/deed? We wanted to do this so that we could all contact Disney to make reservations, etc. Also, if we decide to 'buy them out' of their half of the contract in the future, can we get the names changed?

If anyone else has their DVC setup this way, how do you handle the tax incentives and everything else?

Thanks!

 

[drusba]

You can have as many owners as you want on the deed. You have to decide how you want the transaction specified-- for example, if you choose joint tenancy with right of survivorship, then, if one dies, the rest automatically keep the entire ownership. If you choose tenants in common, if one dies you will go through that person's probate and possibly face a sale of the entire ownership interest.

If you choose to buy out portion later you can do so but it will be like another real estate transaction with a closing and a transfer to a new deed and the costs of a closing such as transfer taxes and document filing fees. You also have Disney's right of first refusal for a resale but in that situation it generally waives the right.

The risks of joint ownership via deed include the possibility of death of one as mentioned above and also that the creditors of any one owner can force a sale of the whole to pay debts, and if one of the couples decides to divorce, that could also result in in the sale of the entire ownership absent agreement otherwise.

As for tax deductions, that actually depends on who pays the dues. There is a deduction for property taxes and if members are equally sharing the dues, they should each claim a deduction for the applicable share.

 

[JWG]

We are joint owners with my parents (4 names on deeds: Mom, Dad, Wife, me). We own 4 contracts (2 BWV, 2 BLT). In reality, the 2 BWV contracts are my parents to manage and the 2 BLT mine. We're on their deeds as an estate planning decision and they on ours to keep our points in one membership for ease of pooling at 7 months.

A few things on ours:
- joint tenancy with right of survivorship (hence estate planning)
- parents pay the dues (they had this already setup when we added), we pay them for BLT portion
- The portion of money paid to taxes for a tax deduction aren't worth the hassle
- No loan - all contracts paid in full at purchase, not carrying other's debt
- We're married over 10 years and my parents almost 40, low risk of divorce/issues with ownership scenario

I wouldn't do this with just anybody, friends or non-close relatives. We vacationed with my parents and enjoyed their DVC for 10+ years before buying our own. We're now happy to be able to share our portion with them as well given all the "free" trips we enjoyed.

 

[Dean]

We are looking at buying ~120 point contract with my in-laws and basically splitting the costs 50/50. Is it possible to have all of the names on the contract/deed? We wanted to do this so that we could all contact Disney to make reservations, etc. Also, if we decide to 'buy them out' of their half of the contract in the future, can we get the names changed?

If anyone else has their DVC setup this way, how do you handle the tax incentives and everything else?

Thanks!

You don't need all the names to allow all to call and deal with reservations, you could add others as associates. You would need all names at different addresses for most discounts, esp the AP discount. Having a family partnership is a complicated and risky issue. I wouldn't do it if there are other siblings or a risk of financial issues for either party.