Buying Resale Question-Joint Tenants?

[Disney Fanatic]

When buying resale for a husband and wife, what is the recommended way to show ownership?

Is it joint tenants or tenants in common or something different?

What do most people do?


Also, if we want to leave to our son in case something happens to us, how do we include this as well?

Thanks

 

[vascubaguy]

Someone can probably answer this a little better than I, but I'll give it a shot based on my experience.

When I submitted my offer for a resale I was asked for the named of an "co-owners". In my case it's just me on the deed. However, when I received the paperwork from the resale agent, there was simply a line to list a co-owner and a signature.

Now I haven't seen the final closing papers yet (they should be here next week), but I have a feeling they will be the same way. Will just list a co-owner.

As for leaving them to an heir.... I would imagine that you just have to "will" them to your children. Your estate could then transfer the deed to your children.

 

[CarolMN]

Those are questions best answered by your attorney or financial advisor - they depend on your individual circumstances. What's best for your family may not be what most people who post here do or recommend.

There are several ways for ownership to pass to your son. There are tax implications as well as legal issues to consider.

Best wishes -

 

[debbie in Seattle]

How old is your child? I bought 2 different resales and put each on of my girls on a contract with me. All I needed was a signature and SS#. When I'm gone, it's theirs to keep, pay the dues or sell. Avoid probate as much as possible, $$$$ and ties everything up for awhile, been there, done that.
Made it perfectly clear to the kids these were my properties til I was too febile to know I had them and then they could have them.

 

[Disney Fanatic]

My son is 5 years old.

The closing company said today that I cannot put his name down because he cannot own real estate.

Any thoughts on this?

 

[vascubaguy]

It makes sense... 1 adult and 1 five year old. If something were to happen to you that would make the 5 y/o responsible for the maintenance fees...

 

[Cruelladeville]

It's a bad idea to put your child on DVC in any case. At 5 he's a sweetheart, but at 25 he could be so far in debt that he has to declare bankruptsy--there goes your DVC. Unless you can pay your child's debts in full, the DVC will have to be sold to satisfy his debts, and it makes no difference to the court that your name is on it too. If he marries, and then is part of a divorce, your DVC becomes part of community property, and must be sold, and yes, you could lose your part in DVC. My DD's ex left her, and ran the charges up to their limit before the court could act, and the DVC had to be sold, even though she was the sole owner. He declared bankruptsy, so she automatically became liable for his debts. That's the law, regardless of what the divorce decree says.

 

[gppnj]

My DD's ex left her, and ran the charges up to their limit before the court could act, and the DVC had to be sold, even though she was the sole owner. He declared bankruptsy, so she automatically became liable for his debts. That's the law, regardless of what the divorce decree says.

I don't really regret never having been married, but if I did have any regrets, that would have squashed them dead.

But I'm sorry your daughter had to deal with these problems. I hope she's in a better space now.

 

[Disney Fanatic]

It makes sense... 1 adult and 1 five year old. If something were to happen to you that would make the 5 y/o responsible for the maintenance fees...

I thought that if something were to happen to my DH and I together and my son was left, he would inherit DVC and of course be able to pay with our savings and all that he will inherit. This way his grandparents who will be responsible for him will be able to still take him to Disney and ultimately it will still be his one day.

I guess I am not understanding how this whole thing works.

 

[vascubaguy]

I thought that if something were to happen to my DH and I together and my son was left, he would inherit DVC and of course be able to pay with our savings and all that he will inherit. This way his grandparents who will be responsible for him will be able to still take him to Disney and ultimately it will still be his one day.

I guess I am not understanding how this whole thing works.

There are laws that regulate estate issues. If where you live it is illegal for a minor to own real estate, then I'm not exactly sure what happens. Probably it would go to the estate. If it could go to a minor, there would probably have to be some type of trust established to cover the annual fees and then at a certain age that would transfer over.

You should probably seek legal advice on how to prepare for these types of situations.

 

[JerJan]

My husband and I are co-owners, with the right of sole-survivorship (?) going to who ever out lasts the other the longest! Everything we own is in a "TRUST" so the trust actually would inherit our DVC if we "go" at the same time. If our girls are adults then everything in the trust goes to them and they become the "TRUSTEES", if we "GO" before they are adults the "TRUST" will still be theirs but my brother becomes the "TRUSTEE"....good luck!

 

[ricapito]

THIS IS NOT LEGAL ADVICE--go see a real estate lawyer-these are just merely ROUGH notes clipped from my property class if you feel like reading them FWIW:

JOINT TENANCY: (1) equal undivided rights to simultaneous possession (not liable for rent etc) with a right of survivorship. (2) A joint tenant's ownership interest terminates at death, it is not inheritable or devisable (but if spousal with common kids then this might not matter in your scenario....) In many states you still need to meet the 4 unities of the transaction: 1- same % interest 2-same time 3-same transfer/title, 4-possession-each has right to whole property. If any unities are destroyed then a "severance" (no longer joint tenants) occurs.

To establish a JT clear language in the document is needed-so "joint tenants" works--but not "jointly" -need clear intent for rights of survivorship. But, "to A and B as joint tenants, remainder to the survivor" creates joint life estates! Not the same as a joint tenancy!

TENANCY IN COMMON- TIC's are presumed--absent specific language to create a joint tenancy. Unequal shares are ok, there is no right of survivorship. Property is conveyable, inheritable and devisable. If a TIC convey's the grantee becomes a new TIC. If a JT conveys, the grantee becomes a TIC! Each has equal right to whole (no right to rents etc). "to A and B" absent express language to create a JT is a TIC. TIC's may arise involuntary through intestate succession. TIC has right to sell, mtg, transfer, lease w/o consent of cotenants

 

[T.E. Yeary]

Looks like you already have some pretty good advice. Checking with your attorney is something I might advise since laws vary from state to state and country to country. Generally speaking, in Florida, two people buying property together, and each wanting the other to have the property when one dies, would have the wording "joint tenants with right of survivorship".
Married couples may prefer "Tenants in the Entireties" which is simply saying the same thing, and only married couples may have this wording.
As to children on the deed, I usually advise against that, depending on the ages and whether they will be using the property themselves, perhaps with friends. I wouldn't put a small child for instance on a deed. If you wanted to sell the property, you've possibly got problems. Someone has already mentioned putting the child or children in your will in order to pass the timeshare to them, and I'm inclined to agree with them.
Tom

 

[lts862]

Although I know that this does not have to do with the OP's question, it did come up with some others' responses.

If you place a child's name as owner of DVC, that could be considered an asset (Well we all know that DVC is an asset ). When applying for financial aid, it could work AGAINST the child as all of their (the child's) assets are considered at 100% when figuring the amount of aid they are eligible to receive. Only a percentage of the parent's assets are considered for eligibility. We have been advised, and have read in several books, that it is not good for the child to have much in assets especially when applying for aid. At this point, we have seperate accounts in our names for the children, earmarked for them, but not listed in their name or SS#. Just something to consider or explore for the future. **I am not an attorney or financial advisor.**


My Dad owns DVC points and has recently decided to add my name to the deed. He is getting up in years and wants my family (his only grandchildren) to enjoy it after he is gone. We have it listed as joint tenants with rights of survivorship.
Lynn