Adding siblings as members to new contract

[Frizzelleta]

Hi everyone, after 5 years of contemplation I’ve finally decided to go ahead and purchase a Poly direct contract. One question I did have in regards to adding multiple members, I’d like to add both of my adult siblings to the membership so they can take advantage of member benefits as well. My question: do they bear any liability related to the membership or dues?

 

[JETSDAD]

They are just as responsible for the contract as you and have all the same right to the contract as you. So they can create their own login and have access to the contract and they are responsible if dues aren't paid. Of course if you pay your dues and any loans then there is no concern on that side. It really comes down to your relationship with family which seems pretty good if you're considering this (I'd consider it for a couple of my family members and not others lol).

 

[DVChris]

In case you or your siblings are married... I've read there can be problems in a divorce where the soon to be ex-spouse wants their portion of the shared DVC points. Just a thought as it could get complicated.

 

[Louis morrell]

Remember, if they are on the sale they are not "members" but owners of the property (as all of us "members" are) with equal rites and responsibility.

 

[Frizzelleta]

Thanks all, this is very helpful info to consider!

 

[sndral]

When you buy your adult siblings will need to sign all documents relating to the sale. I’m assuming you’ll be paying cash but if not they’d be equally responsible for any loans secured by a mortgage on the property. They’ll be liable for dues and any special assessments.
Their financial issues can impact your DVC contract - if a sibling divorced the contract would be an asset in the divorce proceedings, if a sibling declared bankruptcy the contract would be an asset in those proceedings, depending on how title is held it might also need to go through probate.
I’d hesitate to do this personally. The only benefit they’d not get IMO at the moment is discounted APs. The discounts on merchandise/food they can get via a Disney Chase credit card.
I do have my adult son on my membership, but I‘ve paid cash for all my contracts & thus was not subjecting him to additional debt, I knew I could easily pay the MFs as well so would not be subjecting him to those bills. I was fully aware of the possible issues that could arise when I went that route & I was very familiar w/ his financial situation & knew that if he ran into financial problems I’d be the one bailing him out anyway. For me it was one less headache for him when the time comes & as sole heir he has to probate my estate.

 

[Frizzelleta]

When you buy your adult siblings will need to sign all documents relating to the sale. I’m assuming you’ll be paying cash but if not they’d be equally responsible for any loans secured by a mortgage on the property. They’ll be liable for dues and any special assessments.
Their financial issues can impact your DVC contract - if a sibling divorced the contract would be an asset in the divorce proceedings, if a sibling declared bankruptcy the contract would be an asset in those proceedings, depending on how title is held it might also need to go through probate.
I’d hesitate to do this personally. The only benefit they’d not get IMO at the moment is discounted APs. The discounts on merchandise/food they can get via a Disney Chase credit card.
I do have my adult son on my membership, but I‘ve paid cash for all my contracts & thus was not subjecting him to additional debt, I knew I could easily pay the MFs as well so would not be subjecting him to those bills. I was fully aware of the possible issues that could arise when I went that route & I was very familiar w/ his financial situation & knew that if he ran into financial problems I’d be the one bailing him out anyway. For me it was one less headache for him when the time comes & as sole heir he has to probate my estate.

That’s great info and helps with explanation as I discuss this with them. I will be paying cash and setting up an escrow for the MFs for the life of the contract so not worried about the liability side having an effect on them. They are also beneficiaries on all my other accounts as I intend for them and their one day families to be my heirs. Ideally I’d add them as beneficiaries rather than co-owners on the membership but as I understand it that really isn’t an option and co-ownership helps them avoid the probate headaches.

 

[DVChris]

Do you have a Trust? This might help with having them as beneficiaries.

 

[Frizzelleta]

Do you have a Trust? This might help with having them as beneficiaries.

Yes but as I understand it the membership benefits can only be gained by being a member on the deed, correct? So if say they want to come down on a trip without me and visit the member lounge or get a dining discount, they wouldn’t have a blue card to be able to do that. The trust would grant them to access outside of probate in the event of my death, but gives them no benefits while I’m still alive unless I’m missing something.

 

[RoseGold]

This is owning real estate with another person, probably in another state. No way I would do this with someone I'm not married to. Of course they "bear liability." And your joint property can get dragged into their divorce/bankruptcy/lawsuit/bitter family dispute/I can keep going. And boy would this be fun to multi-state probate.

Oh, and there's some horror stories, like one lady in a divorce canceling her ex's trip right before he got down there. That's a big deal with how DVC is structured, and she was totally authorized to do it in the ownership agreements.

There are other ways to set this up, like trusts or LLCs. This is a lot of complication for a dining discount at a few restaurants. It doesn't even work at the popcorn cart.

 

[pianomanzano]

As others have mentioned, it gets real sticky adding siblings (and current/future spouses). Never know what life events may happen (bankruptcies, divorces, death) that could jeopardize your ownership. To me, those risks outweigh the very minimal benefits blue card provides like lounge access, 10% on select dining, 20% merch.

You may already know this, but you can make them associate members which allows them to book reservations on your points. That alone is pretty generous and if they want those savings then perhaps they can get APs which provide discounts similar to blue card (no lounge access though).

 

[Sandisw]

The key is, regardless of who is paying, you are making them an owner. They will have all the same rights as you do. I added my adult kids for this same reason, and they don't do anything with the points, etc. They see them as ours since we paid for them.

However, there is nothing legally to prevent them from going in, booking a trip on their own. There is nothing that can prevent that. And, once they own, you would never be able to sell without their consent.

While it is nice to be able to make them eligible for discounts and such, it is a big decision with lots of potential drawbacks. If it were me, I would be more likely to not make them owners, and then give them a Disney gift card every year with some money on it that covers the cost difference between the Incredipass and Sorcerer Pass...This way, they get the discounts still...just not the lounge.

Good luck!

 

[bumbershoot]

The discounts on merchandise/food they can get via a Disney Chase credit card.

Or even with a Disney *debit* card. https://disneydebit.com/vacation-perks/walt-disney-world-resort/

 

[Frizzelleta]

This is owning real estate with another person, probably in another state. No way I would do this with someone I'm not married to. Of course they "bear liability." And your joint property can get dragged into their divorce/bankruptcy/lawsuit/bitter family dispute/I can keep going. And boy would this be fun to multi-state probate.

Oh, and there's some horror stories, like one lady in a divorce canceling her ex's trip right before he got down there. That's a big deal with how DVC is structured, and she was totally authorized to do it in the ownership agreements.

There are other ways to set this up, like trusts or LLCs. This is a lot of complication for a dining discount at a few restaurants. It doesn't even work at the popcorn cart.

I own multiple real estate interests with these individuals already. If anything I’d trust a spouse less than I’d trust my siblings. People know their spouses for what, 2-3 years before committing to sharing all their assets? I think it’s a little amusing how people seem to be much quicker to say spouses are ok on membership when they seem to be a big source of headaches in divorce proceedings (which 40-50% will have to go through).

On your note regarding the multi-state probate, isn’t one of the main reasons to add multiple owners to the deed to avoid probate altogether?

 

[RoseGold]

spouses are ok on membership when they seem to be a big source of headaches in divorce proceedings (which 40-50% will have to go through).

On your note regarding the multi-state probate, isn’t one of the main reasons to add multiple owners to the deed to avoid probate altogether?

Spouses have a well-established system to to handle these issues called divorce. If you get in a similar dispute with a sibling, the way out is much, much more complicated.

Maybe. Multiple owners may or may not do anything to what happens in probate with those owners' interests. They're completely different questions. You really need legal advice for all of this. Joint real estate is complicated. I wouldn't do it at all. If I were doing it, it would be with real lawyers involved and actual partnership agreements. Owning joint real estate opens you up to all kinds of issues in their death/divorce/lawsuits/bankruptcy. This isn't something I would choose.

 

[DonMacGregor]

Great to see that respect for the nuclear family is alive and well...