Example language for trust?

[Good Ol Gal]

We are looking at creating a trust for our DVC contracts. Does anyone who has done this have sample language? Our attorney has never done a trust with DVC before. Thanks for any insights or examples.

 

[wdw_explorer]

We are looking at creating a trust for our DVC contracts. Does anyone who has done this have sample language? Our attorney has never done a trust with DVC before. Thanks for any insights or examples.

I will start with the standard disclaimer that I am not an attorney so you cannot rely on what I say as legal advice.

A revocable living trust (the type we used and that I will discuss - if you want another type, none of the below may apply) is a legal entity that you can transfer assets into. The trust is not set up as a DVC trust - it is created (in our case by an attorney) as its own entity with no assets. After it is created, it can be "funded" (by transferring assets to it) with your DVC contracts and other assets (such as a house in our situation) as desired. There are some assets that cannot or should not be placed in the trust, such as IRAs (ask your attorney for details on those limitations).

Once the trust is created the placing DVC into the trust is done by transferring ownership of the DVC contract from the current owners to the trust. I used LT Transfers to do this, which I received as a recommendation from DISboards (they were great); there are others on this site that explain the procedure for the adventurous who want to do it themselves.

There are other trust types that I don't know the rules about so ask your attorney what kind you need to get based on what you want it for (avoiding probate in my case). If your attorney is not familiar with moving DVC into it he/she should still be able to create the trust for you and then a separate legal firm (such as LT Transfers) should be able to help you fund it with your DVC contracts.

Good Luck!

 

[Disdreaming479]

I purchased my contracts in the name of my revocable trust.

 

[wdw_explorer]

Yes- that is the way to do it.!!

Given the OP talked about their DVC contracts. I assumed they already had them. I do realize now however that it can be read as them considering a purchase and not already owning.

If that is the case, clearly setting up a trust and then having the trust purchase them is the right way to go.

Thanks for the clarification if someone reads it as a potential owner considering the best way to deed the contract into a trust.

 

[Good Ol Gal]

Thank you @wdw_explorer.

We already have a revocable trust for our house and are looking at creating one separate for just our three DVC contracts, and place that inside our our main trust.

Our thought was to put the DVC in it's own trust so we could name our adult children as full trustees so they have full membership, without giving them full access to our main trust. Does that make sense? I'm just so unclear how that is written and does it need to specify our DVC contract details. I need to make time to call Member Accounting but will be a conference through the 12th.

I will keep LT Transfers in mind when paperwork needs to be completed.

 

[wdw_explorer]

It does makes sense. Two trusts is a great way to do that. I don't know if you need to have one inside the other or they can just stand alone - I'll let the lawyer handle that one ;-)

I don't think there needs to be anything specific about the trust for DVC - the contracts are just one the many assets the trust can hold. I know our trust was a standard trust where we just re-deeded our contracts to the trust. I believe that all trustees have full membership benefits, as you desire (our trust does not have our kids - yet).

Caveat: I think you can have at most 6 owners on a contract - I don't if the maximum number of trustees that can get the full membership benefits is also limited to that or not. Don't know if that would even come into play in your situation.

Good luck adding those lucky kids!

 

[Disdreaming479]

Yes- that is the way to do it.!!

Given the OP talked about their DVC contracts. I assumed they already had them. I do realize now however that it can be read as them considering a purchase and not already owning.

If that is the case, clearly setting up a trust and then having the trust purchase them is the right way to go.

Thanks for the clarification if someone reads it as a potential owner considering the best way to deed the contract into a trust.

I thought we were in the purchase thread oops!