Curious...leaving DVC in your will

[MaryAnnDVC]

How have you handled your DVC contract(s) in your will? Do you make mention of it, or is everything simply split equally among your children?

We have 3 adult children (all raised very well to be Disney freaks ) who would all love to own DVC. However, we have one contract. We haven't made any statements in our will to sell it and split the proceeds; everything is split 3 ways. It's only 250 points, so could get problematic sharing the contract. They get along well, but that's the kind of thing that could cause a strain in relationships. Years ago, when my mother was living, I was reading a book about wills with case studies about the unintended effect of certain decisions, frequently about sharing vacation homes, and some stories made me cringe.

Ideally, they'd just work out an arrangement for sharing the points, without issues. From my point of view, ideally everything would be all set before we die. (We're going to WDW next week, without the kids, which always makes me think of dying and wills. Great way to start off a vacation! )

Actually, the most ideal situation would be to buy two more 250 point contracts and leave one to each. DH said "Would love to, but..." I don't know...something about the kids' college educations draining us dry. LOL Damn kids!

Now that I think about it, I don't even know if there are any rules/restrictions regarding inheriting a contract???

 

[SamiL]

DH wants a second kiddo. Guess I should bring up a second DVC contract in the negotiations.

 

[disneynutz]

Sell the contract and give them the money. I see it causing conflicts and ill will trying to share one contract even if they want to pay the fees which by then, they may not.

If you had 3 contracts that would be a different thing.

Bill

 

[dvcterry]

This comes from our member guide:

INCIDENTAL BENEFITS MAY NOT BE HYPOTHECATED, BOUGHT, SOLD, EXCHANGED, RENTED OR OTHERWISE TRANSFERRED, EXCEPT UPON WRITTEN APPROVAL OF DVD, AND ARE SOLELY FOR YOUR BENEFIT AND NOT FOR THE BENEFIT OF YOUR ASSIGNS OR SUCCESSORS-IN-INTEREST. IF YOU SELL YOUR OWNERSHIP INTEREST, INCIDENTAL BENEFITS DO NOT AUTOMATICALLY TRANSFER TO YOUR BUYER. THE AVAILABILITY OF INCIDENTAL BENEFITS MAY OR MAY NOT BE RENEWED OR EXTENDED TO SUCH ASSIGNS OR SUCCESSORS-IN INTEREST. DVD RESERVES THE RIGHT, IN ITS SOLE, ABSOLUTE AND UNFETTERED DISCRETION, TO ELECT TO PERMIT TRANSFER OF ANY ONE OR MORE INCIDENTAL BENEFITS, AND, IF IT DOES SO, MAY REQUIRE PAYMENT OF FEES AND/OR CHARGES AS A CONDITION TO TRANSFER. DO NOT PURCHASE YOUR OWNERSHIP INTEREST IN RELIANCE ON YOUR ABILITY TO TRANSFER INCIDENTAL BENEFITS IF YOU SELL YOUR OWNERSHIP INTEREST. MEMBERS WHO PURCHASE OWNERSHIP INTERESTS IN ANY DVC RESORT FROM A PERSON OR ENTITY OTHER THAN DIRECTLY FROM DVD SHALL NOT BE ABLE TO USE THE VACATION POINTS ASSOCIATED WITH THAT OWNERSHIP INTEREST FOR RESERVATIONS OR STAYS THROUGH THE INCIDENTAL BENEFITS KNOWN AS THE ADVENTURER COLLECTION, CONCIERGE COLLECTION OR DISNEY COLLECTION.

 

[MrShiny]

My suggestion would be to sell your current contract and buy three 83 point contracts. Then gift these to your children when it seems they will get more use than from them than you think you will - of course you could always have them bvook you trips - I bet you did the same for them! This could also avoid the inheritance tax they would have to pay - but of course consult a tax proessional!

How have you handled your DVC contract(s) in your will? Do you make mention of it, or is everything simply split equally among your children?

We have 3 adult children (all raised very well to be Disney freaks ) who would all love to own DVC. However, we have one contract. We haven't made any statements in our will to sell it and split the proceeds; everything is split 3 ways. It's only 250 points, so could get problematic sharing the contract. They get along well, but that's the kind of thing that could cause a strain in relationships. Years ago, when my mother was living, I was reading a book about wills with case studies about the unintended effect of certain decisions, frequently about sharing vacation homes, and some stories made me cringe.

Ideally, they'd just work out an arrangement for sharing the points, without issues. From my point of view, ideally everything would be all set before we die. (We're going to WDW next week, without the kids, which always makes me think of dying and wills. Great way to start off a vacation! )

Actually, the most ideal situation would be to buy two more 250 point contracts and leave one to each. DH said "Would love to, but..." I don't know...something about the kids' college educations draining us dry. LOL Damn kids!

Now that I think about it, I don't even know if there are any rules/restrictions regarding inheriting a contract???

 

[Chuck S]

This comes from our member guide:

INCIDENTAL BENEFITS MAY NOT BE HYPOTHECATED, BOUGHT, SOLD, EXCHANGED, RENTED OR OTHERWISE TRANSFERRED, EXCEPT UPON WRITTEN APPROVAL OF DVD, AND ARE SOLELY FOR YOUR BENEFIT AND NOT FOR THE BENEFIT OF YOUR ASSIGNS OR SUCCESSORS-IN-INTEREST. IF YOU SELL YOUR OWNERSHIP INTEREST, INCIDENTAL BENEFITS DO NOT AUTOMATICALLY TRANSFER TO YOUR BUYER. THE AVAILABILITY OF INCIDENTAL BENEFITS MAY OR MAY NOT BE RENEWED OR EXTENDED TO SUCH ASSIGNS OR SUCCESSORS-IN INTEREST. DVD RESERVES THE RIGHT, IN ITS SOLE, ABSOLUTE AND UNFETTERED DISCRETION, TO ELECT TO PERMIT TRANSFER OF ANY ONE OR MORE INCIDENTAL BENEFITS, AND, IF IT DOES SO, MAY REQUIRE PAYMENT OF FEES AND/OR CHARGES AS A CONDITION TO TRANSFER. DO NOT PURCHASE YOUR OWNERSHIP INTEREST IN RELIANCE ON YOUR ABILITY TO TRANSFER INCIDENTAL BENEFITS IF YOU SELL YOUR OWNERSHIP INTEREST. MEMBERS WHO PURCHASE OWNERSHIP INTERESTS IN ANY DVC RESORT FROM A PERSON OR ENTITY OTHER THAN DIRECTLY FROM DVD SHALL NOT BE ABLE TO USE THE VACATION POINTS ASSOCIATED WITH THAT OWNERSHIP INTEREST FOR RESERVATIONS OR STAYS THROUGH THE INCIDENTAL BENEFITS KNOWN AS THE ADVENTURER COLLECTION, CONCIERGE COLLECTION OR DISNEY COLLECTION.

Selling is different from an inheritance. My mom died last year. I am her only heir. She and I were both owners of the contract and it had been paid in full for years, no problems, it is now my contract after probate.

With 3 heirs, you have a few options. You could put your DVC into a trust, giving each child the use of the points every 3rd year. You could mandate your estate to sell the contract and split the proceeds. You could leave the contract to only one child, maybe as a gift to the one you name as executor (unless you have a bank or someone else named as executor).

Or you could sell the contract and by 3 84 point contracts via resale to lave each one a contract.

Personally, I think I have a frank chat with all three of your kids together and simply ASK them how they'd like it handled for DVC, reminding them that in any event there is an end date to the contract, and that there are annual dues and fees associated with the contract until that end date.

 

[OrangeCountyCommuter]

I hope to sell mine before I die... I don't want to leave a liability and that's what this IMHO. "Gee honey, here's your inheritance and you have to pay high MF (by the time I die I expect that will be really high) and spend a lot of money to use it" Uhh... no! LOL!

Right now it actually goes to a charity to be sold at whatever they can get for it.

 

[MrsDuck]

My parents have their contracts split up into smaller point amounts but my name is on all of the contracts. I'm an only child and my parents (in their 50s) knew there would be no more kiddos when they bought DVC. It will make it easier to just have my names on the contracts prior to their deaths.

We've discussed our own contracts and plan to give each child a contract with the same number of points, if we have any kids.

 

[dvcterry]

Selling is different from an inheritance. My mom died last year. I am her only heir. She and I were both owners of the contract and it had been paid in full for years, no problems, it is now my contract after probate.

I am very sorry to hear about your loss. I see that you were an owner of the contract and it went without problem, which I am glad, I would want the same for my children. Currently we hold multiple contracts & have inquired on behalf our children regarding the transfer of ownership should something happen, as op mentioned, and were informed of the restrictions, transfer of ownership. They are minor children & a trust would be established, in the event something happens to us.

 

[marynvince]

I'd say just out live your contract problem solved

 

[BirdsOfPreyDave]

I'm not sure I'd go to the expense of selling my current contract and re-purchasing just to simplify what would happen in the event of my death. If there were other items in my estate that had similar value, I might consider making three specific bequests of those items. (John gets our DVC contract, Jane gets Dad's coin collection, June gets our IBM stock. The remainder of the estate is to be divided equally.)

If I weren’t able to come up with something of similar value to specify for each, I’d indicate that my DVC membership was to be sold, with the proceeds to be split.

This comes from our member guide:

INCIDENTAL BENEFITS MAY NOT BE HYPOTHECATED, BOUGHT, SOLD, EXCHANGED, RENTED OR OTHERWISE TRANSFERRED, EXCEPT UPON WRITTEN APPROVAL OF DVD, AND ARE SOLELY FOR YOUR BENEFIT AND NOT FOR THE BENEFIT OF YOUR ASSIGNS OR SUCCESSORS-IN-INTEREST. IF YOU SELL YOUR OWNERSHIP INTEREST, INCIDENTAL BENEFITS DO NOT AUTOMATICALLY TRANSFER TO YOUR BUYER. THE AVAILABILITY OF INCIDENTAL BENEFITS MAY OR MAY NOT BE RENEWED OR EXTENDED TO SUCH ASSIGNS OR SUCCESSORS-IN INTEREST. DVD RESERVES THE RIGHT, IN ITS SOLE, ABSOLUTE AND UNFETTERED DISCRETION, TO ELECT TO PERMIT TRANSFER OF ANY ONE OR MORE INCIDENTAL BENEFITS, AND, IF IT DOES SO, MAY REQUIRE PAYMENT OF FEES AND/OR CHARGES AS A CONDITION TO TRANSFER. DO NOT PURCHASE YOUR OWNERSHIP INTEREST IN RELIANCE ON YOUR ABILITY TO TRANSFER INCIDENTAL BENEFITS IF YOU SELL YOUR OWNERSHIP INTEREST. MEMBERS WHO PURCHASE OWNERSHIP INTERESTS IN ANY DVC RESORT FROM A PERSON OR ENTITY OTHER THAN DIRECTLY FROM DVD SHALL NOT BE ABLE TO USE THE VACATION POINTS ASSOCIATED WITH THAT OWNERSHIP INTEREST FOR RESERVATIONS OR STAYS THROUGH THE INCIDENTAL BENEFITS KNOWN AS THE ADVENTURER COLLECTION, CONCIERGE COLLECTION OR DISNEY COLLECTION.

That’s very true. Currently, when DVC issues a waiver of their right to first refusal for a contract that’s being sold, there is language in the certificate they issue that specifically revokes the right to use the points for certain purposes. This is consistent with their recent policy change regarding the Disney Collection, Adventure Collection, and Concierge Collection for resale contracts.

However, in the cases of gratuitous transfers of ownership (such as inheriting a contract in a will or receiving it free as a gift from a family member), DVC News indicates they’re not adding this language. Of course, that could change at any time and there’s no telling exactly what the policy would be in the future (hopefully far in the future) when a will would take effect. One would hope, though, that Disney will continue to recognize and honor the difference between someone purchasing a contract on the resale market and someone receiving it as a gift.

 

[BWV Dreamin]

We have ours under a trust. The trust will be administered, and if no one wants the contract under thier name, then it will get sold. I personally would not will it over in thier name. That leaves the financial burden on them one way or the other.

 

[dvcterry]

I'd say just out live your contract problem solved

that's my plan!

 

[lilpooh108]

We have ours under a trust. The trust will be administered, and if no one wants the contract under thier name, then it will get sold. I personally would not will it over in thier name. That leaves the financial burden on them one way or the other.

This seems like the best way. Good planning.

In my prior line of work....I saw tons of situations where "kids" were fighting over certain things left to them regardless of the good will of their parents.... In one situation a parent invested equal proceeds in random investments, and equal proceeds in a portfolio of real property. He left the investments to one kid, and the real property to another. You can guess which one increased dramatically in value over 30 years....the sibling who felt shafted sued the estate and trustee after the parent's death. I'm thinking the parent had good intentions.

In another situation, a child tried to challenge her parents' trust complaining about her unfair share (as compared to the other siblings) BEFORE her parents' death. She didn't understand that she wasn't entitled to anything before her parents died. Guess who got written out of the will & trust.

To the OP---Even if your adult children get along great now, they may or may not in the future. Don't leave things to a hope & a prayer....tighten up the loose ends, so to speak.

 

[Disney52303]

Interesting we have three contracts 160, 25, 110 points and have not yet placed them in our will. I think we will designate 160 to DD (older) and the 135 to DS. Fairest way I can think of.

 

[MaryAnnDVC]

I'd say just out live your contract problem solved

This is definitely our plan! lol

Thanks for all the responses. At my age, I know enough people who've lost their parents and have heard many stories about issues with inheritances. We made our own will years ago, and haven't revisited it, and definitely need to do that. We're making one "emergency" change to it through a codicil (change of executor) ASAP, before we travel next week, which got me thinking about the whole thing. But when we (hopefully!!!) come back, we need to really look at and fine tune everything with a lawyer.

As I stated, my kids get along great, but I've seen families fall apart following a death. My best friend and her siblings have been split down the middle following their father's death this year. Awful.

 

[disneynutz]

All families get along great until the family members think that they have a reason not to and money is the number one reason.

Bill

 

[SamSam]

We own multiple contracts all in the name of our trust. We have detailed instructions for our kids on how to sell them if they prefer not to pay the annual fees.

 

[lilpooh108]

All families get along great until the family members think that they have a reason not to and money is the number one reason.

Bill

So sad, so true.

 

[dianeschlicht]

Hmmm, and we have 3 contracts for 2 offspring.