DVC in a living trust

[CailinFig]

Has anybody put their dvc into their trust? We're in the buying process and I'm debating whether or not to put this into our trust.

My only concern is that we have two contracts in rofr - NOT listed under our trust (my mistake). So this would require the ROFR process to restart again. Also, one of those properties is Aulani. I'm wondering if I should just let the rofr process complete and then try to change the title later on? Or will that be more difficult?

Any opinions? We are paying cash, so I'm thinking that I should put it in our trust since we will be paying that lump sum of cash.

 

[JimMIA]

I would ask your broker that question. If the contracts are in ROFR now, it might not be a big deal to change the titling of the account. The ROFR process might just go forward normally, with the change coming with the closing documents. The legal framework of the contract has nothing to do with Disney's ROFR decision.

If that can't be done, re-titling the account after the fact should be pretty straightforward. You would just handle that through Member Administration for a nominal fee.

 

[lawboy2001]

I believe you don't need to do ROFR if no money changes hands...so if you just transfer the DVC to your trust, after you get it through ROFR, you should be ok.

Otherwise you'll have to restart everything, i.e. you'll need a new contract. You'd probably have to offer the seller something to agree to this...

 

[Moniqu17]

This exact same thing happened to us a couple months ago. There was a lot going on and we forgot to mention our trust, so the contract went through ROFR under our names. After getting through ROFR, we mentioned to the title company that we had wanted to put it in our trust. We had to send them the paperwork for the trust etc, but it wasn't an issue. We didn't have to go through ROFR again and it really didn't take the title company any extra time to make this change for us. My guess is since we are the trustees and the only people on the DVC contract that it wasn't an issue.

 

[Dean]

I believe you don't need to do ROFR if no money changes hands...so if you just transfer the DVC to your trust, after you get it through ROFR, you should be ok.

Otherwise you'll have to restart everything, i.e. you'll need a new contract. You'd probably have to offer the seller something to agree to this...

You still have to go through the ROFR process I believe to change the names but it's more a formality when it's changing to a trust or adding a name. Technically the lack of money changing hands is not necessarily a free pass though it has traditionally been so.

 

[RobDoc]

Has anybody put their dvc into their trust? We're in the buying process and I'm debating whether or not to put this into our trust.

My only concern is that we have two contracts in rofr - NOT listed under our trust (my mistake). So this would require the ROFR process to restart again. Also, one of those properties is Aulani. I'm wondering if I should just let the rofr process complete and then try to change the title later on? Or will that be more difficult?

Any opinions? We are paying cash, so I'm thinking that I should put it in our trust since we will be paying that lump sum of cash.

We are in the process of transferring our DVC contracts into a Living Trust. For existing DVC ownership you will still need to submit the transfer for ROFR - contact DVC Member Administration and they will send a Request for Transfer form.

Once you have the ROFR waiver, the deed needs to be transferred to the Trust and recorded with the county. Since three of our contracts are for HH, we need to have that done through a SC attorney.

In your situation, if you start the process over now, you will just have some possible additional ROFR time, but everything will be completed with no additional expense. If you complete the purchase and then transfer into the Trust, you will have the additional expense of re-titling the contract(s) and recording them again with the county.

 

[Dean]

We are in the process of transferring our DVC contracts into a Living Trust. For existing DVC ownership you will still need to submit the transfer for ROFR - contact DVC Member Administration and they will send a Request for Transfer form.

Once you have the ROFR waiver, the deed needs to be transferred to the Trust and recorded with the county. Since three of our contracts are for HH, we need to have that done through a SC attorney.

In your situation, if you start the process over now, you will just have some possible additional ROFR time, but everything will be completed with no additional expense. If you complete the purchase and then transfer into the Trust, you will have the additional expense of re-titling the contract(s) and recording them again with the county.

If you're not too far along, I believe LT transfers is the cheapest and I'm pretty sure they do SC.

 

[CailinFig]

In your situation, if you start the process over now, you will just have some possible additional ROFR time, but everything will be completed with no additional expense. If you complete the purchase and then transfer into the Trust, you will have the additional expense of re-titling the contract(s) and recording them again with the county.

Thank you everyone for your input. We decided to just add time to the rofr process and put everything in the trust now since we have the opportunity to do so.

We have two different brokers/title companies and we were able to do an addendum for both contracts to change the title name to our trust. Now it's just a waiting game for rofr!

 

[disneynutz]

You still have to go through the ROFR process I believe to change the names but it's more a formality when it's changing to a trust or adding a name. Technically the lack of money changing hands is not necessarily a free pass though it has traditionally been so.

Wouldn't adding the person(s) to the title in common accomplish the same thing as a trust?

Bill

 

[Dean]

Wouldn't adding the person(s) to the title in common accomplish the same thing as a trust?

Bill

My understanding is only partly but I'm sure others are more knowledgeable than I in this area.

 

[Moniqu17]

We were advised by our lawyer to put all of our real estate, finances, 401k, etc into the trust, so we put our DVC into trust.

Our son is only 2 yrs old, so DVC would go to him but would be either kept or sold depending on what the financial adviser named in the trust decides. I don't really want to add my 2 year old to our DVC ownership, but then if we were to have other children they would have to be added as well down the road. So if anything happened, the trust takes care of everything for us.

 

[RobDoc]

Wouldn't adding the person(s) to the title in common accomplish the same thing as a trust?

Bill

A revocable living trust has other advantages that would not be realized by just adding others to the title. Probate can be avoided by the properties in the trust.

 

[disneynutz]

A revocable living trust has other advantages that would not be realized by just adding others to the title. Probate can be avoided by the properties in the trust.

If two people are on title and one dies, I was told that probate wouldn't be required and the surviving person on title takes full ownership.

Any idea if this is correct?

Bill

 

[BWV Dreamin]

We have both of our contracts titled in a living revocable trust. Doc is correct that one main advantage is to avoid probate. Another is that no hiers are technically owners after we pass and it can be sold through the estate if no ine wants them. So we would not be leaving any financial obigation to our heirs. We were advised not to title any pensions or 401k in the trusts because there are other restrictions that apply.

 

[BWV Dreamin]

If two people are on title and one dies, I was told that probate wouldn't be required and the surviving person on title takes full ownership.

Any idea if this is correct?

Bill

Our contracts are titled in the name of my husbands trust and my trust. So if one of us dies DVC rolls over into the other trust.

 

[Moniqu17]

Sorry I meant to say our retirements beneficiaries are in the trusts name not the actual accounts. oops

 

[disneynutz]

Our contracts are titled in the name of my husbands trust and my trust. So if one of us dies DVC rolls over into the other trust.

But if you and your husband were titled as co-owners and one dies, the other is still the owner and from what I was told, no probate is involved because you are co-owners.

I get different answers from different legal sources and based on what I can find out, putting your heir on title, if you have a trusting relationship can have the same benefit as a trust but without the added expense and maintenance.

Retirement 401K's and IRA's shouldn't be in the trust, anything that depreciates shouldn't be in the trust, so maybe DVC and your house if a trust is better than joint or common title.

Bill

 

[CailinFig]

But if you and your husband were titled as co-owners and one dies, the other is still the owner and from what I was told, no probate is involved because you are co-owners.

Bill

I am not a lawyer or an estate planner, but this is what I have been told as well. Our decision to title in our trust is bc we have young children who we did not want to add to the title.

 

[CailinFig]

Adding: We were more concerned with what would happen if we both passed.

 

[RobDoc]

If two people are on title and one dies, I was told that probate wouldn't be required and the surviving person on title takes full ownership.

Any idea if this is correct?

Bill

The survivor would take full ownership, the issue comes when that survivor passes - without a Trust, the estate would go to probate. With the trust, the control goes to those listed as succeeding trustees.

We have one trust, in the name of both my wife and myself. We are co-trustees. When we are both gone or incapable, our daughters will become trustees and have control over the contents of the Trust. There are also provisions for subsequent trustees based on the age of the grandchildren.

In our case, all tangible property is going into the Trust (depreciable or not). All deeded or titled property, bank and brokerage accounts are included - but not business accounts, IRAs or pensions as those are handled via beneficiary designation (where the beneficiary is the Trust).

As with any of these types of question, you should consult your legal adviser for information pertinent to your state and personal situation.