DVC and Estate Planning?s

[joandegennaro]

I just read a post about adding others to your contract and it triggered a question for me. Any advise is appreciated. My situation is this: DH and I just purchased OKW with extended years direct from Disney. This means we will be 91 and 89 when it expires. While we wanted the extra years to gift to our 2 DD once we no longer can either travel due to health issues or the other thing. Our hope is to have many wonderful years of travel with each other and once the girls have famililes with our GC! Hey, maybe we will even be able to enjoy those extended years ourselves...you never know.

Should we consider adding our DD's onto our contracts or would you recommend that it gets transfered when we no longer can go, or willed to them upon our deaths. Kind of morbid I know but it happens to all of us eventually. Just wondering how others have handled this situation as they go on in age.

 

[Deb & Bill]

Long before you can no longer go, I'm gonna bet the dues are going to be outrageous. I don't plan to saddle my son with these and will probably sell long before that time.

 

[TheRustyScupper]

1) Don't do anything now.
2) Just put the bequest in your will(s).
3) It can be put in their names for about $250 title costs (today's dollars).
. . . if you are still alive transfer it when ready
. . . if you are dead, you executor(trix) will do it

 

[Sandisw]

First, you can not add children to DVC as owners until they are adults so this may or may not even be possible. But, I would not worry about that from this point.

If and when your DD's decide they want the contracts, and you are not using them any longer, you can take care of it that time.

 

[joandegennaro]

One is only 6 months away from being a legal adult and the other is only 5 yrs away. They should be well and truly into their own family life when the time comes. Unless life throws us a curve ball which I know can and does happen to people. As far as dues and saddling the kids with the burden...they want our DVC when the time comes (I think they figure they will have years of "free" accomodations threw us) that the expense will not be that difficult. I can't see the dues costing more than a regular vacation for the amount of points we will give them. Even if they triple in the next 30 years it will still be a reasonable annual cost for them. Yes they will have to pay for things like tickets, food and travel over and above the MF. But the accomodations will be paid for. Again only time will tell.

 

[Sandisw]

One is only 6 months away from being a legal adult and the other is only 5 yrs away. They should be well and truly into their own family life when the time comes. Unless life throws us a curve ball which I know can and does happen to people. As far as dues and saddling the kids with the burden...they want our DVC when the time comes (I think they figure they will have years of "free" accomodations threw us) that the expense will not be that difficult. I can't see the dues costing more than a regular vacation for the amount of points we will give them. Even if they triple in the next 30 years it will still be a reasonable annual cost for them. Yes they will have to pay for things like tickets, food and travel over and above the MF. But the accomodations will be paid for. Again only time will tell.

Our children feel the same way. We just bought in last year but they all want DVC contracts at some point!!!

They are older as well--DS21, DD17 and DD 14--so are pretty sure they know what they want.

Instead of adding them to our contracts (since we know we will be using them quite often), we plan to help them in buying their own over the next 10 years. DS really loves SSR so we figure when he turns 25, we will help him get a small 100 point contract to start.

But, if when we get to a point where we don't see us using DVC any longer, we will take care of how to get them our BLT points since I am pretty confident they will all have their own contracts by then!!!

 

[OKW Lover]

Another recommendation to hold off adding your children to the deed. As was suggested, just put in in your will and it will pass to them on your passing.

If you add them now and something should happen like a bankruptcy or divorce, you could wind up losing DVC in the proceedings. Also, if they apply for financial aid it will have to be listed as an asset.

 

[OrangeCountyCommuter]

Long before you can no longer go, I'm gonna bet the dues are going to be outrageous. I don't plan to saddle my son with these and will probably sell long before that time.

I agree that passing on DVC is not just "here's a free asset". There's a liablity that comes with it.

I think that you need to make sure your heirs want and can afford DVC. Even if they want it, the truth is that they may not be able to afford the "liablity" that comes with it.

 

[jerseygal]

Codicil to my will I don't believe is necessary...

My original will says "all real property"...

 

[SSR]

Long before you can no longer go, I'm gonna bet the dues are going to be outrageous. I don't plan to saddle my son with these and will probably sell long before that time.

This got me thinking, too. Do you mean:

A. "They're going to increase at a rate faster and higher than the historical trend."

or

B. "At this rate, increasing 3% or so a year for 25 more years, they'll be very expensive."

If A, I'm very curious as to your thought process (i.e. why the dues will increase at a rate faster and higher than historical trends).

If B, isn't that true of everything? (e.g. 25-cent gas, salaries, etc.)?

 

[Deb & Bill]

This got me thinking, too. Do you mean:

A. "They're going to increase at a rate faster and higher than the historical trend."

or

B. "At this rate, increasing 3% or so a year for 25 more years, they'll be very expensive."

If A, I'm very curious as to your thought process (i.e. why the dues will increase at a rate faster and higher than historical trends).

If B, isn't that true of everything? (e.g. 25-cent gas, salaries, etc.)?

I'll choose Letter B. It might be difficult for a young family to accept the cost that will suddenly come out of their pocket if they are willed DVC points.

 

[SSR]

I'll choose Letter B. It might be difficult for a young family to accept the cost that will suddenly come out of their pocket if they are willed DVC points.

Ah, I got it now. I thought you were saying that dues might be $10 a point and, therefore, unaffordable. I wanted to point out that it's all relative (i.e. what used to cost 25 cents now costs $3, etc.)

But, your point is the better one. If someone goes from a zero payment to any payment as significant as the dues would be, it could be sticker shock. Got it. I hadn't thought of that.

 

[OKW Lover]

I agree that passing on DVC is not just "here's a free asset". There's a liablity that comes with it.

I think that you need to make sure your heirs want and can afford DVC. Even if they want it, the truth is that they may not be able to afford the "liablity" that comes with it.

Of cours you can say this about all your real assets. Your house will also come with payments (unless its already paid off), property taxes, maintenance, etc.

 

[joandegennaro]

I get that there is a cost factor involved when they are pass a piece of property. We ourselves were willed a cottage that we had to make sacrifices to be able to afford on one income. Our kids also understand what we had to give up all those years in order to have that cottage to go to every weekend during the summer. The kids say they want it (in fact want to go with us now) and know that it will cost them the dues. This is something they will be planning for. They themselves are savers especially if there is something they want. The amount of points we plan to have that will be willed or gifted to them will not be so much that they should be able to afford the MF each year. Hopefully when this happens they themselves will be well into their family lives and not struggling to get started. More likely around the age we are now looking towards their retirement years.