Deed Info

[eandt]

Wrapping up signing our contract and still questioning the best way to deed it. We are 57/54 with 2 single, at the moment, adult children. Obviously we will not be around to see our contract end in 2057 so we want to make sure that our sons are not saddled with a bunch of legal issues in order to either continue the membership or to sell it. Our guide advised we can have them placed on the deed up until closing at no cost.

Is this a good idea or does it bring with it issues down the road that we are not considering? We do understand that something like a divorce could be a potential problem. If we decide to wait until we no longer want to use the membership to hand it over to them what are the costs associated with doing this after closing? Thank you in advance for your input, we always find the folks on here informative and helpful.

 

[erionm]

If we decide to wait until we no longer want to use the membership to hand it over to them what are the costs associated with doing this after closing?

You could do it yourself at a minimal cost (filing fees). Or pay a 3rd party to create and file the new deed(s). One such company is LT Transfers and their fees start at $175. The closing company that DVC recommends charges around $400 to do it.

 

[chalee94]

If one of them has financial troubles or bankruptcy, your DVC contract may be gone, yes.

If you separated the contracts and put one adult child on each contract, the contracts cannot be under the same membership and would be more difficult to use.

I would say put it in your will, but wait to add them at this point. Michael has good suggestions for the process later.

 

[eandt]

If one of them has financial troubles or bankruptcy, your DVC contract may be gone, yes.

If you separated the contracts and put one adult child on each contract, the contracts cannot be under the same membership and would be more difficult to use.

I would say put it in your will, but wait to add them at this point. Michael has good suggestions for the process later.

I should add that we just purchased our first contract (125 points) so not enough to break up.

 

[RoseGold]

Don’t take legal advice form your DVC Guide. You are buying real estate. This matters in divorce, bankruptcy, family spats, lawsuits, I can keep going.

If you plan to pass this down, there are lots of ways to do this that don’t require probate in florida. Lots of people use trusts. I would probably use a company in my home state, but my estate is already handling a couple.

you could split it to two contracts and just deed to each kid at the jump, lots of choices. If this is a significant purchase, maybe it’s worth spending the money to get real legal advice from a local estate lawyer.

 

[eandt]

Don’t take legal advice form your DVC Guide. You are buying real estate. This matters in divorce, bankruptcy, family spats, lawsuits, I can keep going.

If you plan to pass this down, there are lots of ways to do this that don’t require probate in florida. Lots of people use trusts. I would probably use a company in my home state, but my estate is already handling a couple.

you could split it to two contracts and just deed to each kid at the jump, lots of choices. If this is a significant purchase, maybe it’s worth spending the money to get real legal advice from a local estate lawyer.

Ty for the input Agree take no legal advice from my guide or anyone else trying to sell me something I was just stating that when we inquired about adding our kids he advised that if we did it before closing it would cost nothing additional. He did not recommend one way or the other. We have until mid July before we close so it's not a rush, we were just interested in how other folks have handled it. Not sure that we could go wrong either way as each brings with it the possibility of issues in the future.

 

[sndral]

After weighing potential pros and cons I did put my adult son on my DVC contracts from the get go. But the value of the DVC contracts wasn’t a major asset for me, so it wasn’t much of a concern either.
I was aware that if he ran into financial difficulties it would be an asset for him & thus reachable by his creditors, I was less concerned about marital issues should he marry since it wouldn’t be community property having been acquired prior to any marriage & I was paying the MFs (per my & at the time his state’s family law statutes.) If at some point I wanted to sell the DVC contracts he’d have to sign off on the closing documents, just like when I bought & he had to sign the purchase documents. He’s also technically liable for the MFs, I paid cash, so no issues w/ him being liable on a mortgage.
The benefit has been that as a blue card member he can get member APs/ticket discounts for himself & his household, DVC discounts, access to the member site, etc..
I am single & titled the deeds (I have 3 contracts in our membership) as Joint tenants w/ right of survivorship - so when the time comes he inherits & avoids Florida probate.
As a married couple you can title your deed as tenants by the entirety, thus if one spouse dies, the other automatically inherits. If you choose to add your sons you cannot hold title as tenants by the entirety since that’s only available to married couples. Your choices are either:
tenants in common - where if one owner dies their share goes to their descendants (or whomever their will names) via probate; or
joint tenancy with right of survivorship - where if one owner dies their share automatically goes to the remaining owners avoiding probate.
caveat - never practiced real estate, probate, or family law

 

[ILoveMyDVC]

You could do it yourself at a minimal cost (filing fees). Or pay a 3rd party to create and file the new deed(s). One such company is LT Transfers and their fees start at $175. The closing company that DVC recommends charges around $400 to do it.

$320 for a quit claim LT Transfers

 

[eandt]

After weighing potential pros and cons I did put my adult son on my DVC contracts from the get go. But the value of the DVC contracts wasn’t a major asset for me, so it wasn’t much of a concern either.
I was aware that if he ran into financial difficulties it would be an asset for him & thus reachable by his creditors, I was less concerned about marital issues should he marry since it wouldn’t be community property having been acquired prior to any marriage & I was paying the MFs (per my & at the time his state’s family law statutes.) If at some point I wanted to sell the DVC contracts he’d have to sign off on the closing documents, just like when I bought & he had to sign the purchase documents. He’s also technically liable for the MFs, I paid cash, so no issues w/ him being liable on a mortgage.
The benefit has been that as a blue card member he can get member APs/ticket discounts for himself & his household, DVC discounts, access to the member site, etc..
I am single & titled the deeds (I have 3 contracts in our membership) as Joint tenants w/ right of survivorship - so when the time comes he inherits & avoids Florida probate.
As a married couple you can title your deed as tenants by the entirety, thus if one spouse dies, the other automatically inherits. If you choose to add your sons you cannot hold title as tenants by the entirety since that’s only available to married couples. Your choices are either:
tenants in common - where if one owner dies their share goes to their descendants via probate; or
joint tenancy with right of survivorship - where if one owner dies their share automatically goes to the remaining owners avoiding probate.
caveat - never practiced real estate, probate, or family law

Ty, your situation in many ways mirrors ours except that we have 2 unmarried sons.

 

[DonMacGregor]

Hang on a sec, no one seems to be addressing the most important aspect of OP’s post. I’m 57, and I’m planning on being around in 36 years….LOL

 

[PirateBrigade]

If I had the chance, I would have hustled to finish creating our family trust and titled all of our contracts into that trust.

Me and my wife bought both of our contracts in our late 20's and family trust wasn't exactly on our minds. Now, I have to redraw deeds (not difficult) and go through the process w/ DVC, but it's more of an annoyance and I haven't done it yet.

 

[eandt]

Hang on a sec, no one seems to be addressing the most important aspect of OP’s post. I’m 57, and I’m planning on being around in 36 years….LOL

LOL read closer .... 'obviously will not be around to see our contract end in 2057" .... thus the question about deeding to my kids.

 

[DonMacGregor]

LOL read closer .... 'obviously will not be around to see our contract end in 2057" .... thus the question about deeding to my kids.

Right, 2057 is 36 years from now, and I'm the same age as you. I may be a hopeless optimist, but I'm planning on still being around (93 seems to be a good goal, no?). Regardless of whether my kids get the contracts or not...HAHA

 

[eandt]

Right, 2057 is 36 years from now, and I'm the same age as you. I may be a hopeless optimist, but I'm planning on still being around (93 seems to be a good goal, no?). Regardless of whether my kids get the contracts or not...HAHA

LOL Good luck my friend, perhaps we will still be doing beers around the world in 2057, who knows!