DVC a good way to spend inheritance...your thoughts.

[Brikate]

Originally posted by jennymouse
Has anyone else here ever purchased DVC with inheritance? I'd like to hear your thoughts.

We have done this very thing.

Growing up, my parents were very selfish (well, my father mostly, but my Mom didn't do much to intervene on our behalf) with their time, money and vacations. Fast forward ... we bought into DVC in 2000 as we LOVE taking vacations with our 4 kids and 3 grandbabies and wanted to share the best with them as we knew it would be a struggle for them to do anytime soon. My father died in 2001 and my Mom, who has been struggling with Alzheimer's for the last 8 or so years was incapable to deal with anything. We (myself, my DH & 1 of my 3 sister's) are her daily caretakers. Right after my father died, we had their lawyer set up an irrevocable trust to protect their assets and gift out to us $10,000 a year. The first year, we looked at it as a great windfall, paid on our DVC and we also felt somewhat guilty. Then another year (and now almost 2) goes by and we don't feel so guilty anymore. We even doubled our points She's happy daily and when we take her on vacation, and we're happy that we are able to share this with her and our kids.

My sisters' monies are all gone and we will have our little inheritance for the next 39 years!

 

[ncligs]

Jenifer,
We did the same back in 1999 when my father passed away.He always enjoyed going to Florida through DVC(sister was DVC member first).He loved having the family together in a GV at OKW.
We bought into DVC before he passed away. Then we figured after selling his house and splitting it among 5 kids, we decided to pay off our original contract (230-OKW) and add on 70 more points at OKW, and add-on 200 pts at VB. Every time we are at a DVC resort we always think of the good times and "memories" we had with our parents(mom passed in 98) and I wouldn't trade them for any material item.
Now 4 members of our family are DVC members.We also know our 2 kids will have a lot of memories and eventually it will be theres some day(if we don't make it to 2042 .
So yes I think it is good way to use the inheritance, and now we have 500 pts every year(unless we add on ) and only have the dues as an expense.

 

[Disney Doll]

My DH and I just did the same thing. We lost both of his parents in 2001, and we just bought a 230 point contract at OKW. It is our 2nd contract,.as we had already had a 200 point contract at OKW which we had purchased oursleves in 1997.

We kind of told ourselves that even though maybe our in-laws didn't "understand" our WDW addiction, they understood that WDW is where we liked to go to relax and enjoy oursleves. My in-laws were always people who enjoyed life. Think how nice it wil be to think of your other every time you are at WDW, knowing that some of the money you inherited from her makes it possible to go to a place that makes you happy. Most parents want us to be happy, even if they don't always "understand" it.

It sounds like you are being sensible...taking a little of the money to do something you enjoy and then investing the rest. I'd say go for it.

 

[jennymouse]

You folks and your stories have moved me to tears. Thank you for all your kind thoughts. I don't feel nearly as guilty for thinking of DVC or WDW now! And thank you for all the info & links about gift tax, etc. I love the people on the DIS!

DVCajun, I believe you read my mind! I'll definately be willing my points to my DGD instead of DD as I've still not (and it's unlikely I ever will) gotten over DD's behavior on that trip.

Thanks again. Hopefully, within the next couple weeks you'll all be welcoming me home!

 

[AEN]

Same as has been expressed, sorry to hear about your mother

Gift Tax and Unified Credit

Without getting into a lot of detail. You do not pay tax on the gift. The person providing the gift would and generally it is on the excess. There is a potential to avoid paying gift tax on amounts given above the, current, $11,000 and that ties into the "unified credit". Unified as it relates to estate taxes. All of this is addressed on a gift tax return. It gets complicated and I recommend that if you are considering this, and other gifts, that you seek advice of a CPA and/or attorney.

With that said. After you have figured it all out, I am sure that you will enjoy your first vacation to DVC even more. As I will be doing in May right after tax season.

 

[crisi]

My inheritence story:

A number of years ago, a distant relative of my husband's died and left us money. Unlike the stories here, where DVC will always bring memories of your loved ones, this was a distant relative I'd never met, and my husband had only met once.

We paid for our son's adoption. We also paid down debt, bought a new car (mine was in need of replacing) and stuck money aside for another new car. We didn't do anything impractical with the money at all.

But it did change our lives to the point that when the opportunity to purchase DVC came along, we were in the position to do it - had the cash on hand (since we had no more credit card bills, car loans, or student loans, we've been able to maintain an adequate savings account).

My advice on inheritence or other windfall cash - use the money to change you life permanently. I'd consider DVC a permenant life change. Its something that you will have and be ableto use for a very long time.

 

[Lesley]

A gift like this was how we joined DVC. A relative whose spouse had passed away gave each relative and spouse (and their children) a gift, avoiding the gift tax.

After a little debate (car? house downpayment? bills? DVC?) we decided to pay off bills with half and use the rest for DVC. We're very glad we did it! We thought this would be a great way to remember her gift to us as well.

 

[Zurg]

I bought DVC with an inheritance.
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My kids!. LOL

 

[Pumbaa_]

Thanks for all the stories, please pass the tissue. They are very touching stories.

Part of my points will be an inheiritance. I bought at BVC (a50 pts) in the spring. I kept talking and talking about it and my parents starting asking questions. Okay Dad actually started with he is to old to buy a timeshare (he is 64).

Well, it was my parents 40th anniversary in September and Dad bought 70 points for Mom for a gift. They did an add-on to my contract. So they have the use of the points as long as they are able and someday (not soon!!!), we will have 220 points to use.

We were there in January with them and we had so much fun. They spent 5 nights in a studio at BCV and then moved to the all stars for 3 nights. They had a wonderful time! They are talking about letting my brothers take turns using hte points and they will stay at the all stars. (They really like it there, go figure )

I always tell my parents to spend my inheiritance. If they want to share some of it with me now, that is great. They are having a blast in their retirement and spend half the year in sunny florida and have in CT. So someday, my inheiritance will be points abd I could not think of a better thing to receive from my parents. I have been to Disney with them every year since '99 and I hope it continues for many more years to come.

So buy guilt free and when you are there, think how happy your mom's gift has made you.
God bless you and your dear mother!