DVC in a living trust

[Disney Dad ADL]

OK, so this is a different sort of trust than what I have set up, whereby property can be moved into or out of the trust during the grantor's lifetime, and upon death the trust keeps what it had and the successor trustee can administer it. I think your strategy requires the trust be set up to transfer assets on the grantor's death rather than retaining them.

You probably have a revocable living trust, which is the most common sort of family trust. Basically, you are the trustees. While you are alive, you can pretty much do whatever you want with the trust assets, including take out assets from the trust. When you pass away, then the assets are given to the beneficiaries or controlled by successor trustees depending on how you have it set up. It sounds like @BWV Dreamin may also have a revocable trust that is separate from husbands trust, and the kids also have trusts, so the beneficiaries are all trusts rather than people. My wife and I only have 1 shared trust, so there's no "rolling over" into the other per se because there was only one to begin with. Our kids also don't have trusts, so they themselves are the beneficiaries (as individuals). I'm not an expert by any means, but within the trust there are lots of different tricks they can do while still sharing the framework of a revocable living trust.

For example, in our trust, when one of us dies, it splits into 2 separate trusts, 50% each. If my wife were to die, then the trust splits into 2. I become trustee to both trusts. My half remains the same and I pretty much have free reign. Access to my wife's half is somewhat limited though in terms of what I can use the money for (I believe it's health/maintenance/education only). The reason for this is that if I were to remarry, it protects her half of the assets for our current children. If I were to remarry and have children through a second marriage, my second wife and subsequent children would not have access to my wife's half of the trust.

 

[jtkboston]

You probably have a revocable living trust, which is the most common sort of family trust. Basically, you are the trustees. While you are alive, you can pretty much do whatever you want with the trust assets, including take out assets from the trust. When you pass away, then the assets are given to the beneficiaries or controlled by successor trustees depending on how you have it set up.

Yup, that's what we have. The goal of our trusts is to avoid probate and take advantage of the estate tax exemptions that might otherwise be lost by transferring everything to the spouse. They go to the surviving spouse and then to children. We didn't set them up to contemplate joint ownership of assets between the two trusts, so I don't think they'd work very well to hold joint title of a DVC ownership interest.

 

[BWV Dreamin]

Yup, that's what we have. The goal of our trusts is to avoid probate and take advantage of the estate tax exemptions that might otherwise be lost by transferring everything to the spouse. They go to the surviving spouse and then to children. We didn't set them up to contemplate joint ownership of assets between the two trusts, so I don't think they'd work very well to hold joint title of a DVC ownership interest.

Yes that is what we have Living Revocable trust. Deed is not held jointly but in the name of both Trust ' s ( I think it's tenants by entirety but definitely not joint).

 

[BWV Dreamin]

You probably have a revocable living trust, which is the most common sort of family trust. Basically, you are the trustees. While you are alive, you can pretty much do whatever you want with the trust assets, including take out assets from the trust. When you pass away, then the assets are given to the beneficiaries or controlled by successor trustees depending on how you have it set up. It sounds like @BWV Dreamin may also have a revocable trust that is separate from husbands trust, and the kids also have trusts, so the beneficiaries are all trusts rather than people. My wife and I only have 1 shared trust, so there's no "rolling over" into the other per se because there was only one to begin with. Our kids also don't have trusts, so they themselves are the beneficiaries (as individuals). I'm not an expert by any means, but within the trust there are lots of different tricks they can do while still sharing the framework of a revocable living trust.

For example, in our trust, when one of us dies, it splits into 2 separate trusts, 50% each. If my wife were to die, then the trust splits into 2. I become trustee to both trusts. My half remains the same and I pretty much have free reign. Access to my wife's half is somewhat limited though in terms of what I can use the money for (I believe it's health/maintenance/education only). The reason for this is that if I were to remarry, it protects her half of the assets for our current children. If I were to remarry and have children through a second marriage, my second wife and subsequent children would not have access to my wife's half of the trust.

Yes we each have a Living Revocable trust. And yes you described exactly how our sons Trusts will inherit the assets, and they would be the successors or administrator's of their own trust. Again this is all set up to avoid taxes and probate. Thanks Disney Dad!