Adding adult children

[ebenmax]

My H and I are considering adding our adult children to one of our DVC contracts. Then eventually to all of them.
Are there any hidden or easily overlooked legal or financial issues with this that could cause a problem down the road?
Thanks a bunch!

 

[Stormalong Smiths]

Recommend you check out the thread on gratuitous transfers here: https://www.disboards.com/threads/s...xisting-contract-gratuitous-transfer.3701707/

Note that you will end up with two separate memberships if the member names on all the contracts aren't identical, so the contract(s) to which you add your children's names will be in one membership and those that you keep in just your and your spouse's names will be in another.

 

[com_op_2000]

If your child was to have financial problem and declare bankruptcy or marriage issues and divorces, the judge in the case could declare the DVC contact part of the resolution to the issue and force a sale. What DW and I did was buy a small contact with their names on that one contract, that way most of our points are safe from any protentional problem.

 

[ebenmax]

If your child was to have financial problem and declare bankruptcy or marriage issues and divorces, the judge in the case could declare the DVC contact part of the resolution to the issue and force a sale. What DW and I did was buy a small contact with their names on that one contract, that way most of our points are safe from any protentional problem.

Thank you!!
We are planning to add them to our smallest contract for now and as we age, add them to our bigger one.
Have you had any issues trying to book using 2 memberships?

 

[Stormalong Smiths]

Thank you!!
We are planning to add them to our smallest contract for now and as we age, add them to our bigger one.
Have you had any issues trying to book using 2 memberships?

I personally only have one membership, but it's my understanding that points from different memberships cannot be used for the same reservation without first transferring points from one membership to the other. Having two memberships would certainly add additional complexity to your booking process, but I'll leave it to others who have personal experience to weigh in.

 

[com_op_2000]

Thank you!!
We are planning to add them to our smallest contract for now and as we age, add them to our bigger one.
Have you had any issues trying to book using 2 memberships?

No, it takes about 10 minutes extra thought per UY to figure out which contact to use.

 

[Nursemanit]

The real question is - what benefits do they get that they would not get if you left it in a will or trust?
Lots of risks with divorce and bankruptcy vs a shopping discount.

 

[corpcomp]

I added my adult son. It is a bit expensive to go through Disney to add to the contract because of the title company they use. Instead, call Orange County and ask what you need to provide directly in addition to a Quit Claim Deed which they told me to get at Staples. I did that and it cost me $70 to add him, while the title company wanted hundreds. Once approved you send the final papers to DVC Administration for recording.

 

[Sheree]

I added my adult son. It is a bit expensive to go through Disney to add to the contract because of the title company they use. Instead, call Orange County and ask what you need to provide directly in addition to a Quit Claim Deed which they told me to get at Staples. I did that and it cost me $70 to add him, while the title company wanted hundreds. Once approved you send the final papers to DVC Administration for recording.

thank you! I've been procrastinating on adding my son. this makes it easy! don't need a title search. and I'll do it before he ever gets married so it's not a marital asset!

 

[Sandisw]

thank you! I've been procrastinating on adding my son. this makes it easy! don't need a title search. and I'll do it before he ever gets married so it's not a marital asset!

Just be aware that not every situation qualifies it as a martial asset. It is dependent on state and circumstances..

 

[Sheree]

Just be aware that not every situation qualifies it as a martial asset. It is dependent on state and circumstances..

in NJ if it was obained before marriage and not used as he marital home as well as not comigled it's not a marital asset. important to keep things in own name for that reason

 

[john7994]

If your child was to have financial problem and declare bankruptcy or marriage issues and divorces, the judge in the case could declare the DVC contact part of the resolution to the issue and force a sale. What DW and I did was buy a small contact with their names on that one contract, that way most of our points are safe from any protentional problem.

Exceedingly helpful food for thought ... didn't even consider this as an outcome.

 

[CarolynFH]

Exceedingly helpful food for thought ... didn't even consider this as an outcome.

Very important to know what the community property laws are in the states where your kids live. In ours, if we added our kids but not their spouses to our DVC contracts, DVC would be considered separate property as long as we pay the dues and the child keeps it completely separate from any community property. If the child pays any part of the dues with community property (i.e. their salary) then the DVC becomes community property in regards to their spouse.

 

[john7994]

Very important to know what the community property laws are in the states where your kids live. In ours, if we added our kids but not their spouses to our DVC contracts, DVC would be considered separate property as long as we pay the dues and the child keeps it completely separate from any community property. If the child pays any part of the dues with community property (i.e. their salary) then the DVC becomes community property in regards to their spouse.

Also incredibly helpful to know! Reinforces the good advice to make all decisions with the guidance of professionals that know your individual circumstances!

 

[corpcomp]

Also incredibly helpful to know! Reinforces the good advice to make all decisions with the guidance of professionals that know your individual circumstances!

thank you! I've been procrastinating on adding my son. this makes it easy! don't need a title search. and I'll do it before he ever gets married so it's not a marital asset!

You are welcome. Son is still single but I also set up an iron clad trust through a law firm that specializes in Family Trusts to protect all the assets given to him.

 

[john7994]

You are welcome. Son is still single but I also set up an iron clad trust through a law firm that specializes in Family Trusts to protect all the assets given to him.

We have been looking at the Trust angle at lot more lately - we have two nieces and one nephew - all now married -

 

[corpcomp]

We have been looking at the Trust angle at lot more lately - we have two nieces and one nephew - all now married -

I believe if they are already married it will be difficult to set up a Trust for one spouse without the other being able to get a portion of it in a divorce. In order to minimize the access your child’s spouse might have, the trust can direct the trustee to pay expenses for your child rather than make cash distributions directly to him or her. This came from Northwestern Mutual's site. I'm no lawyer. You would need to talk with one.

And I pay all the dues on the contract.

 

[john7994]

I believe if they are already married it will be difficult to set up a Trust for one spouse without the other being able to get a portion of it in a divorce. In order to minimize the access your child’s spouse might have, the trust can direct the trustee to pay expenses for your child rather than make cash distributions directly to him or her. This came from Northwestern Mutual's site. I'm no lawyer. You would need to talk with one.

And I pay all the dues on the contract.

Good stuff and thank you - we have been a bit negligent in our estate planning - so I guess its time to have those conversations ...