Can a trust own a dvc, thus never need to go thru rofr?

[JonsDuu]

Just thinking out loud. Can a trust own a dvc? If so, one can sell the trust ownership, leaving intact the dvc ownership and all its original privileges.

Trust is also good for familial transfer. One of the selling point of the dvc was giving the dvc to our kids (at least that was the sell pitch we heard in 1999 when we were at wdw for our honeymoon). We didn't buy at that time, so didn't ask the sales person that question. When we bought our house, we bought it through a trust--make it easier to transfer to our future kids. Was wondering if anyone know if this is possible with dvc?

 

[BWV Dreamin]

I can only speak to our situation so maybe this info will be of some help.

We have a Living Revocable Trust. So far we have only moved one of our contracts into it. The deeds are titled in the name of the trusts( we have one in each of our names) in which we are the administrators. The trust allows for the transfer to heirs without going thru probate. The deeds will still need to be re-titled if any of the heirs want them. The contract still needs to go thru ROFR but goes thru a family process where no value is assessed.( I forget the name Disney uses). All of the current uses of the contract pass down to the heirs unchanged.

There maybe be other scenarios with other types of Trusts, but this gives you one example. Hope this helps.

 

[JimMIA]

Yes, a trust can hold any asset including a DVC contract. Our DVC and Wyndham contracts, as well as other holdings, have always been held in a trust.

However, if the trust SELLS the DVC contract, the transaction would have to go through ROFR.

The better way to use a trust for generational transfer of assets is to simply set up successor trustees, which you should have anyway. If the grantor or other trustee dies, the successor trustees automatically assume control of the trust and all assets of the trust.

I would never recommend setting up a trust except as a part of an overall estate plan. The costs are significant and unless the trust is part of a comprehensive financial plan you end up with a mess that hurts you financially rather than helps.

If a trust makes sense for other reasons, it is one way of holding a DVC account, but I sure wouldn't go to Office Depot and buy a form and fill it out. You need to consult a local attorney in your state who specializes in trusts and estates because trust laws vary somewhat from state to state. The attorney will be able to tailor a trust to your family's needs (or recommend other alternatives which might be better).

The other thing you should know is that DVC has a mechanism for handling familial transfers anyway. The transfer still has to go through ROFR, but they traditionally waive ROFR if the transaction is truly between family members.

If that's your main concern -- not larger financial/estate considerations -- you should contact Member administration and discuss it with them. A DVC timeshare salesman will have no clue how that works and may give you erroneous information.

 

[Brian Noble]

It would be interesting to know whether inherited contracts are considered "purchased from the developer" or "purchased resale"...

For example, Wyndham considers any developer-purchased points that are inherited to remain as developer-purchased.