Buying in with multiple owners

[Pgood609]

Hello everyone, new to the forums.

My family and I recently came back from a family Disney trip and considering buying into DVC. I would be buying in with my dad and brother. The thinking being we would essentially rotate using the points annually and have a larger family trip every several years or so. We're thinking 300 points split into two contracts. Any suggestions on how we should split ownership with the contracts? Not sure if anyone has a similar scenario or knows of any pitfalls to avoid. Maybe it's as simple as all three of us on both contracts. We'd prefer to maintain flexibility if possible. For example, down the road if someone wanted out of the contract the other two would be able to buy them out of their share without it going to Disney for ROFR.

Thank you in advance for your input!

 

[busyizzy]

Hello everyone, new to the forums.

My family and I recently came back from a family Disney trip and considering buying into DVC. I would be buying in with my dad and brother. The thinking being we would essentially rotate using the points annually and have a larger family trip every several years or so. We're thinking 300 points split into two contracts. Any suggestions on how we should split ownership with the contracts? Not sure if anyone has a similar scenario or knows of any pitfalls to avoid. Maybe it's as simple as all three of us on both contracts. We'd prefer to maintain flexibility if possible. For example, down the road if someone wanted out of the contract the other two would be able to buy them out of their share without it going to Disney for ROFR.

Thank you in advance for your input!

Real estate can get messy quick - I’d definitely draw up a legal contract stipulating the terms (who gets to use the points which year, what buying out will look like if someone wanted out, etc), before you actually buy any points.

 

[cm8]

Real estate can get messy quick - I’d definitely draw up a legal contract stipulating the terms (who gets to use the points which year, what buying out will look like if someone wanted out, etc), before you actually buy any points.

This, also who gets what in case of Divorces and or death…

 

[RoseGold]

I would never, ever, ever do this. One random example:
https://www.disboards.com/threads/k...-but-ex-is-now-filing-for-bankruptcy.3894488/

The correct way to do this is to get actual legal advice and hold this in a trust, people do it all the time.

Or, one person buys it and the others just pay them for it. Points have a known value. That person wants to sell, they sell. Other people can buy their own contracts, or maybe buy that one.

The issues with joint deeds don't necessarily have anything to do with whether the other person is a decent human. The most common reason for bankruptcy in the US is medical bills.

There are a ton of situations that make having multiple adults on a deed messy, which have nothing to do with moral failings. Death, being sued, Medicare, applying for college financial aid, divorce, I can keep going.

 

[sndral]

One dad, two sons, if I had 2 kids (I only have one) I’d just split those 300 points into two 150 contracts/memberships w/ dad & you on one of them, dad & your brother on the other - each titled w/ right of survivorship so that when dad is gone you don’t have to go through probate in Florida. That way assuming you are going direct each son has direct member benefits. You can transfer points into one of the contracts to book your combo trips (max once a year for transfers) or one contract books X days the other Y days of the trip.

 

[Sandisw]

With three people and only two contracts, you have to include everyone on both to keep them in the same membership.

If you want to have dad on each with the siblings as the other owner…my vote..then you end up with different memberships, but at least each sibling and dad are owners of each..which means the other sibling does not have direct access to use the contract or would not need to be in agreement to sell, or put the other siblings contract in jeopardy with something like bankruptcy, etc.

To combine, you’d just use a transfer or book whole nights on each. Just remember, legally, anyone who owns has control of the membership and the points and has the right to use them without any other owners permission regardless of what is agreed to.

We own with our adult children for one of our memberships…we have three,

We paid for it, and pay for the dues and our kids see themselves as owners in name only for the discounts, with me controlling how it’s used. But, they can use it when they want as well.
Good luck

 

[Pgood609]

Real estate can get messy quick - I’d definitely draw up a legal contract stipulating the terms (who gets to use the points which year, what buying out will look like if someone wanted out, etc), before you actually buy any points.

Good point. Although we'd never get to that point of using it, would be worth having it up front.

 

[Pgood609]

With three people and only two contracts, you have to include everyone on both to keep them in the same membership.

If you want to have dad on each with the siblings as the other owner…my vote..then you end up with different memberships, but at least each sibling and dad are owners of each..which means the other sibling does not have direct access to use the contract or would not need to be in agreement to sell, or put the other siblings contract in jeopardy with something like bankruptcy, etc.

To combine, you’d just use a transfer or book whole nights on each. Just remember, legally, anyone who owns has control of the membership and the points and has the right to use them without any other owners permission regardless of what is agreed to.

We own with our adult children for one of our memberships…we have three,

We paid for it, and pay for the dues and our kids see themselves as owners in name only for the discounts, with me controlling how it’s used. But, they can use it when they want as well.
Good luck

This makes a lot of sense to me. If we set it up like your scenario, I would own a contract with my dad and my brother would own one with him as well. Would my dad be able to make a single booking with the points from my contract and my brothers or would a transfer or two bookings still be required? Or as you said they're two separate memberships so they can't co mingled that easily? I know their rules for transferring and banking and borrowing that i would have to brush up a bit more on.

 

[AC168]

Two contracts as sndral or a coporation with shareholders.

 

[🍀TwinsMom]

Just tossing these scenarios out there, anyone have kids headed to college soon? DVC gets listed on FAFSA as an asset that could affect financial aid. Also, for dad, not sure about elder care and spending down the estate for nursing home care, etc., if that may put anything in jeopardy. FWIW, I like dad and one sibling per contract.

 

[CarolMN]

This makes a lot of sense to me. If we set it up like your scenario, I would own a contract with my dad and my brother would own one with him as well. Would my dad be able to make a single booking with the points from my contract and my brothers or would a transfer or two bookings still be required? Or as you said they're two separate memberships so they can't co mingled that easily? I know their rules for transferring and banking and borrowing that i would have to brush up a bit more on.

A transfer would still be required because your Dad would have two separate memberships. He would be able to see both memberships when he logs into his DVC account. (You and your brother would only see the one owned). Your Dad would select the membership he wants to use when he books a vacation. A transfer would really only be needed if you needed to use points from both memberships to book a night, Otherwise you can just book some nights from one membership and the rest from the other, and then call MS to link the two separate reservations as a continuing stay.

Either you or your brother could receive a transfer from the other and then book if your Dad does not want to handle the booking and/or calls to MS.

 

[Carol_]

We have multiple family members on one membership with two contracts. We get along well and one of us is a lawyer. If it ever gets hairy for any one of us, we’ve promised to either sell it all or take over the maintenance fees. (The contracts were purchased outright without financing.)
We don’t have a trust and we use the points to bring the family together whenever we can, so no hard feelings as long as everyone is in the know.

 

[Pgood609]

Just tossing these scenarios out there, anyone have kids headed to college soon? DVC gets listed on FAFSA as an asset that could affect financial aid. Also, for dad, not sure about elder care and spending down the estate for nursing home care, etc., if that may put anything in jeopardy. FWIW, I like dad and one sibling per contract.

All good things to consider. My brother and I have 12 years before college becomes a factor and more than likely wouldn't qualify for aid. We're in a fortunate enough position where the cost of DVC membership doesn't create any sort of hardship for us. We won't be financing the purchasing and from there just covering dues. Dad has done extremely well for himself and can work for as long as he's willing and able. We just thought this would be something fun to do while the kids were still young as I have a 5 and 4 year old and my brother's kids are 5 and 2. Definitely leaning towards on sibling per contract.

Thanks again for everyones input

 

[🍀TwinsMom]

Awww, this sounds like a lovely opportunity for your family then to make a commitment to family trips. I love it! Go forth and book those DVC trips with the internet's blessing! LOL.

 

[RoseGold]

If you are buying direct, I would really look into the trust/business options. If I were buying direct, I would have a deep, but not very powerful board. This matters less if you are buying resale, because you don't care about the Blue Card.

https://disneyvacationclub.disney.go.com/faq/contracts-deeds/corporation-llc/

 

[Ad12345]

I would never