Best way to transfer title to (an adult) child?

[MarkLT1]

So my parents are DVC members, with quite a few points. I am their only child, and as they have aged, their travel preferences have changed (however I will never outgrow Disney ).

They've been talking over the past few years about wanting to transfer their title over to me. What is the best way to do this? (we are in no rush). Would it to get me on the contract for a while, then remove themselves? The plan right now is to get me on the contract, and they'd stay on the contract for a few years, and when they really do decide they want to release it, move it all over into my name. Does this seem reasonable? Is there a better way to git-er-done?

 

[nicki.momof3]

following

 

[lovetotravel]

Interesting post. I wonder if this is 2 transactions: one to add you to the title now and one to remove the parents from the title in the future.
I'm not sure if a trust is the answer, but there is a post about trusts you might want to look at.

 

[Sandisw]

I just did this with a few of my contracts, I added my 3 adult kids to my SSR contract and then bought a RIV contract in all of our names.

We filed Joint Tenancy with Right of Survivorship. It means that’s as each of us passes on, the rest remain owners.

So, if you did that type of transfer when adding you now, there would be no reason to remove them later,

I used First American Title that Disney recommends, as I needed it done quick and they helped me achieve that, but it was costly...$475.

However, there are less expensive ways to do it, including contacting other title companies or doing it yourself.

 

[MarkLT1]

Thanks everyone. I'll do some searches here.

Sandisw- that is a very interesting approach, and I'll definitely look into it. I think my dad wants to be off the contract (that is just the way he is), so I dont know if doing joint tenancy would be the way they'd want to go. Although they dont seem to be in a big rush to get it done.

When we do this, we'll definitely also speak to our CPA, but does anyone happen to know the tax implications of doing something like this?

 

[CarolynFH]

Thanks everyone. I'll do some searches here.

Sandisw- that is a very interesting approach, and I'll definitely look into it. I think my dad wants to be off the contract (that is just the way he is), so I dont know if doing joint tenancy would be the way they'd want to go. Although they dont seem to be in a big rush to get it done.

When we do this, we'll definitely also speak to our CPA, but does anyone happen to know the tax implications of doing something like this?

I can’t speak to tax implications, but I can suggest LT Transfers (lttransfers.com) for this, which is known as a “gratuitous transfer.” We used them for a similar action with a different TS my dad owned, and others on this board have used them too for DVC. They’re efficient, thorough, and less expensive than some other companies.

You can also search the DVC forums here (I can’t remember which one it’s under) for a thread with “gratuitous transfers” in the title for information about doing it yourself. That’s the most cost effective method!

 

[bumbershoot]

When we do this, we'll definitely also speak to our CPA, but does anyone happen to know the tax implications of doing something like this?

I had none.

During my divorce we put me on the deed (i’d been the associate) and took him off. He didn’t want it and I did.

Went through LT Transfers with the gratuitous family transfer option, and it was about $200. Easy.

 

[MarkLT1]

Awesome.. I will definitely look up LT transfers. Thanks for all the tips everyone!

 

[Callie]

My mom just added my sister and I to her deed. We used LT Transfers. Took just over a month. Easy as can be.

 

[oufpat]

How do you get in contact with LT Transfers?

 

[CarolynFH]

How do you get in contact with LT Transfers?

Www.lttransfers.com.

 

[bumbershoot]

How do you get in contact with LT Transfers?

When I did I went from a link here. Seems they need someone to work on their search optimization, bc they don’t easily come up in a search! So... https://www.lttransfers.com/

That page has phone and email right up at the top. I emailed them. Easy. Once you choose to start the process after hearing back, you’ll pay a deposit and start filling out the paperwork, then do the final payment when they say.

 

[sethschroeder]

does anyone happen to know the tax implications of doing something like this

Resurrecting to ask the question.

I am thinking of putting my parents on my deed if I purchase direct. I am worried about it being taxed in the future though. I would be paying for the whole contract I just wanted them to be able to get APs at a lower cost since they travel with us to Disney.

 

[Sandisw]

Resurrecting to ask the question.

I am thinking of putting my parents on my deed if I purchase direct. I am worried about it being taxed in the future though. I would be paying for the whole contract I just wanted them to be able to get APs at a lower cost since they travel with us to Disney.

I added my children to an existing deed and and it was a gratuitous transfer, so no tax issues with that,

They are also on the deed for RIV, I did it as joint tenancy with right of survivorship. This way, as we pass on, the kids just stay owners.

From how I understand it, no tax concerns until it is sold.

 

[sethschroeder]

From how I understand it, no tax concerns until it is sold.

Perfect and while you likely are not a tax professional I had read this in another location as well.

 

[Sandisw]

Perfect and while you likely are not a tax professional I had read this in another location as well.

Correct. No tax professional...but what I was told by one when I did it,

 

[MiaSRN62]

Hi,
I have 3 adult children and our contracts are split up. I only own 250 points as such:
Kidani 100 points
Bay Lake 100 points
Bay Lake 50 points

Can each child be willed one each??? Is there a minimum point contract that DVC will recognize? In other words, can one of my children be willed the 50 point BLT contract and still be recognized as a Member??

thanks

 

[Sandisw]

Hi,
I have 3 adult children and our contracts are split up. I only own 250 points as such:
Kidani 100 points
Bay Lake 100 points
Bay Lake 50 points

Can each child be willed one each??? Is there a minimum point contract that DVC will recognize? In other words, can one of my children be willed the 50 point BLT contract and still be recognized as a Member??

thanks

Yes, they will and will be eligible for whatever benefits you have with those contracts. But each would have their own membership, it would no longer be one.

Where it could become an issue is if you have points that have different restrictions. For example, if you have a qualified membership because one of your contracts is direct, but the other contracts are resale, when transferred to each, only the one with the direct contract would get the blue card.

For example, I had a membership with a BWV contract that qualified me for a blue member card. I then added on SSR points resale that did not. When I sold the BWV in November, that membership only has the SSR points now and thus no longer qualifies for the blue card, because I bought those points after they changed the rules.

 

[MiaSRN62]

Yes, they will and will be eligible for whatever benefits you have with those contracts. But each would have their own membership, it would no longer be one.

Where it could become an issue is if you have points that have different restrictions. For example, if you have a qualified membership because one of your contracts is direct, but the other contracts are resale, when transferred to each, only the one with the direct contract would get the blue card.

For example, I had a membership with a BWV contract that qualified me for a blue member card. I then added on SSR points resale that did not. When I sold the BWV in November, that membership only has the SSR points now and thus no longer qualifies for the blue card, because I bought those points after they changed the rules.

Thank you for reply Sandisw!

All are qualifying memberships. Appreciate the input!

 

[drusba]

To add someone to the ownership requires a transfer via deed (and resulting closing and filings with the county) from the existing owners to the new group of owners (which includes the existing owners). To do it, you need someone that knows what they are doing because the deed needs to be precise to avoid later legal disasters, and a waiver of right of first refusal needs to be sought and provided by Disney. You can actually contact DVC and they can give you some information. I am not familiar with LT Transfers, but that may be an organization to contact

For MarkLT1, the transfer would be from his parents to MarkLT1 and his parents and then there could later be another transfer by deed just to him. MarkLT1 mentions his father may want to stay off the ownership when he is put on and thus he may not want to do joint tenancy with right of survivorship. Unless someone is intending to set up (and incur the expense of setting up) a trust as the owner of the property, which trust has precise provisions for distribution of the property after death, the deed to MarkLT1 and his parents, or to just his mother and him, should most definitely state that it is joint tenency with right of survivorship unless you really desire to have a costly probate in a Florida court when one of the owners eventually dies. Joint tenancy with right of survivorship means that if one of the owners dies, the others on the deed instantly become the only owners and no probate is necessary (until the last owner dies). If you do not have the deed say it is joint tenancy with right of survivorship, then it will be deemed to be tenancy in common, meaning if one of the owners dies, probate in Florida, including the cost of hiring counsel, will be necessary, and you will need to figure out who the new owner is that will replace the deceased owner on the deed, because that deceased owner's legal heirs get his share, unless his outstanding creditors grab it first.

As to the tax questions above, the are no income taxes involved with a deed transfer for which no money is passing hands between the original and newly added owners. There are the filing fees/taxes you have to pay when you file the deed with the county. The other possible issue is gift tax filings. The value of the gift would be one-third the fair market value of the timeshare if both parents and MarklT1 are on the need deed; if his father remains off the new deed, the value of the gift to MarkLT1 will be 1/2 the fair makes value of the timeshare. There is an annual gift exemption of up to $15,000 per person, meaning each parent can give MarkLT1 up to $15,000 a year ($30,000 for any gift from both of them). Thus, the gift tax filing issue is the value of the share of the property MarkLT1 receives. If his dad stays on the new deed, MarkLT1's gift equals 1/3 the fair market value of the property, if his dad stays off the need deed, MarkLT1 gets gift share equals 1/2 the fair market value. As long as the 1/3 or 1/2 fair market value does not exceed $30,000, there will be no gift tax issue. If it does exceed $30,000, there will be no gift taxes because, besides the annual emption from gift taxes, his parents also have a lifetime emption of $11.58 million each. Nevertheless, if the value of the share of property MarkLT1 receives is greater than $30,000, his parents will be required to file a gift tax return for the year, not to pay the tax but to show the possible reduction in the lifetime exemption. Of all the possible things involved in this transfer mentioned above, the one his parents should pray they should not have to do is file a gift tax return, something that normal non-accountant, non-lawyer human beings have a difficult time doing because the form consists of four incomprehensible pages that are explained in 20 incomprehensible, singled-spaced pages of instructions.