DVC Resale Family Sale

[kniquy]

I think what we are going to do is instead of me buying anything, I am just going to be added to the deed / membership. We've stopped discussing purchasing.

That is probably the easiest way to avoid involving Disney and any other legal issues. The only possible problems would be deciding on who is paying the maintenance fees. You may want some sort of written agreement as to who is responsible for what. So if they take a trip they can pay the MF on those points and vise versa. Even with family you definitely want to cover your back when it involves financial issues.

 

[RuneSpyder]

I should probably qualify what I meant by "family". It it currently owned by my ex-wife. We are still on good terms because of the kids. The DVC membership was purchased by her after our divorce. She has no interest in going to Disney anymore / paying the maintenance fees. Her and her new husband just aren't going to be going to Disney anymore. They have other timeshares to use. I'm assuming I can still be added to the deed even though we don't have any legal documentation forcing anyone to do it? I don't know if Disney considers this "family" or not? Can you do a gratuitous transfer to an ex-spouse with shared custody of children?

 

[lovin'fl]

Our 200 points at OKW, MIL and FIL pay half our annual dues and get half the points to use. They are not listed on our membership. I just keep track of what points they use and I make the reservations for them. When the annual dues bill comes, they write me a check for half the cost. I think you could do a gratuitous transfer to anyone.

 

[ScubaCat]

The only possible problems would be deciding on who is paying the maintenance fees. You may want some sort of written agreement as to who is responsible for what. So if they take a trip they can pay the MF on those points and vise versa. Even with family you definitely want to cover your back when it involves financial issues.

To enforce that, though, you'd have to be willing to (A) let Disney foreclose on the deed and then (B) sue, hopefully win a judgment, and collect from your family remembers. Regardless of the outcome of that messy scenario, you'd lose the deed.

You're much, much, MUCH (!) better off doing a transfer.

Edit: I suppose you could pay all the dues and sue them without going into foreclosure, but while that process plays out, they could continue to use the points to spite you. So, either way, it's a bad situation.

The point is, it's never a good idea to share something like this. As the previous poster said, one person (or spousal partnership) should hold the deed and manage it for everyone.

 

[mustinjourney]

I should probably qualify what I meant by "family". It it currently owned by my ex-wife. We are still on good terms because of the kids. The DVC membership was purchased by her after our divorce. She has no interest in going to Disney anymore / paying the maintenance fees. Her and her new husband just aren't going to be going to Disney anymore. They have other timeshares to use. I'm assuming I can still be added to the deed even though we don't have any legal documentation forcing anyone to do it? I don't know if Disney considers this "family" or not? Can you do a gratuitous transfer to an ex-spouse with shared custody of children?

Theoretically she could deed it to a trust that is for the kids, with you acting as the trustee. That way, the gift would be between direct family members.

 

[JimMIA]

I should probably qualify what I meant by "family". It it currently owned by my ex-wife. We are still on good terms because of the kids. The DVC membership was purchased by her after our divorce. She has no interest in going to Disney anymore / paying the maintenance fees. Her and her new husband just aren't going to be going to Disney anymore. They have other timeshares to use. I'm assuming I can still be added to the deed even though we don't have any legal documentation forcing anyone to do it? I don't know if Disney considers this "family" or not? Can you do a gratuitous transfer to an ex-spouse with shared custody of children?

I doubt if that connection would be considered family by DVC, but you never know until you ask. And none of us here have an answer for that question that matters. You need to ask Member Administration.

I think you have three general alternatives, each with their benefits and risks.

• You can, in some fashion, transfer ownership to you. You would own the DVC contract entirely yourself, with all that goes with that, both pro and con.
  • Placing the contract in a trust for the kids, with you as the trustee is another avenue for this, but I personally would not create a trust to hold one small asset like a DVC contract (and our timeshares are owned by a family trust along with other assets). To me, a trust should be part of a comprehensive financial plan, not some afterthought documented by a blank form you bought at Office Depot.
• You could add your name to the deed. In that situation, you two would jointly own the DVC contract, with all the good and bad that entails. If either of you gets in financial or legal difficulties, you're in it together. If one of you wants to sell and the other doesn't agree, stalemate. Not my choice, but I'm not you.
• The third option would be to add you as an Associate. You would be able to enjoy full use of the contract, but she would own the contract 100%. You would NOT get any Member benefits. There is no legal process involved and no change in ownership -- just designating you as an associate through DVC. In that situation, obviously you would work out some agreement about who paid the annual MFs.

 

[Dean]

I doubt if that connection would be considered family by DVC, but you never know until you ask. And none of us here have an answer for that question that matters. You need to ask Member Administration.

I think you have three general alternatives, each with their benefits and risks.

• You can, in some fashion, transfer ownership to you. You would own the DVC contract entirely yourself, with all that goes with that, both pro and con.
  • Placing the contract in a trust for the kids, with you as the trustee is another avenue for this, but I personally would not create a trust to hold one small asset like a DVC contract (and our timeshares are owned by a family trust along with other assets). To me, a trust should be part of a comprehensive financial plan, not some afterthought documented by a blank form you bought at Office Depot.
• You could add your name to the deed. In that situation, you two would jointly own the DVC contract, with all the good and bad that entails. If either of you gets in financial or legal difficulties, you're in it together. If one of you wants to sell and the other doesn't agree, stalemate. Not my choice, but I'm not you.
• The third option would be to add you as an Associate. You would be able to enjoy full use of the contract, but she would own the contract 100%. You would NOT get any Member benefits. There is no legal process involved and no change in ownership -- just designating you as an associate through DVC. In that situation, obviously you would work out some agreement about who paid the annual MFs.

If it's gratuitous I doubt DVD would care and I would expect them to give their blessing by phone up front. In the situation of a divorce they might allow it to go through even with payment, I'd definitely ask. Certainly have a partnership creates risk but it sounds like the risk is minimal with several options in this situation. I'd just call and talk to member admin and tell them the ex wants to give it for the benefit of the children and doesn't have any interest in using it herself and ask how best to get that done. My guess is they'll say OK and give you the name of a title company. In this case it can easily be done on their own for less than $50. I'd ask member admin to send the instructions which would include the transfer form. They can then either add the new name creating a partnership or transfer it completely which I'd think would be best even if things are amicable at present.