Family of 6 looking to buy in. Wondering about breaking up points

[KeithSS]

I have friends who are looking to purchase @ 300 points total at CCV for DVC. WL is the families favorite resort and they dont want to own the points anywhere else. BRV isnt really an option because they would like to pass it on to their kids and eventual grandkids so the 2042 expiration doesnt really work. They are a married couple with 4 adult children. The question that has been rolling around in all of our heads is the best way to set it up for the future. So they would have a total of 6 people that they would want involved in DVC. So the main questions are:

1) Can 6 people even be on 1 deed together?
2) What would be the best way to set it up if so? They are looking at doing maybe like 150 Direct and 150 Resale so that they would have Membership Extras for everyone hopefully.
3) If you cannot do 6 on a deed together would it be best to buy 4 - 75 pt contracts and put 1 kid on each contract? Although I suppose it may have to be 2 on each one for everyone to have the extras (150 min for extras)
4) Any ramifications of mixing resale/direct as far as booking goes?
5) If we went he 4 contract way i guess the correct way is to buy the resale first and then add on direct so that they will actually sell the 75pt contracts to them

Any input on this situation would be greatly appreciated. Im pretty good with DVC and even this has my brain spinning lol

 

[pianomanzano]

6 adults on one membership sounds like a bad idea. Any life events (death, divorce, bankruptcy) affecting one person can jeopardize the whole membership.

 

[RoseGold]

Don't do this. It's a terrible idea. Get actual legal advice.

https://www.disboards.com/threads/buying-in-with-multiple-owners.3899783/

 

[AstroBlasters]

This could be a nightmare.

I would look into setting up an LLC and having an LLC purchase the contracts.

It will make it much easier if someone wants to sell/transfer their share, gets married/divorced, or passes away.

 

[Sandisw]

We have 5 on some of our contracts with our adult children. We did it as joint tenancy with right to survivor ship. We were comfortable with doing this after conversations with our children.

Only one is married and we have accounted for this as part of the plan. Other have done a trust so I think that is an option.

The only difference between resale and direct is that resale would not be good at RIV or future resorts, even with owing direct points.

Buying resale first would allow you to add on smaller contracts direct.

 

[KAT4DISNEY]

Remember it takes 150 points direct now to get the extras so everyone would have to be on at least that as a minimum. It could be done with 2 of the 75 points contracts. The concern with having so many on a DVC contract is mostly in regards to financial and martial aspects. Foreclosures or divorce could then affect everyone. Financial aid qualifications for college etc. DVC is a big enough asset for most to consider getting legal advice on this.
Another thing - spouses/dependents at the same address do not necessarily have to be on the deed. They will still qualify for the DVC AP if it ever comes back and would likely be with the actual member for other things. Generally though it doesn't change the marital/financial aspect though - thus the legal advice.

 

[RivShore]

Financial aid qualifications for college etc. DVC is a big enough asset for most to consider getting legal advice on this.

Question - assume one deed of 300 points - If 6 people are on the deed each is only entitled to 1/6th of the value of the deed, no? If that's true, that's $10k/person (assuming Direct) really not that big of an asset that it would impact college aid and, if there are any death/divorce issues, it's just $10k of the contract that's in jeopardy. I would think if you can afford a $60k DVC purchase, the remaining members could quickly come up with the buyout value for that 1/6th. And that buyout amount will decline as time goes on. So I guess my question is, is the cost of a lawyer really needed for a relatively small potential issue down the road? Each individual must answer that for themselves, I would think.

 

[RoseGold]

If 6 people are on the deed each is only entitled to 1/6th of the value of the deed, no? If that's true, that's $10k/person (assuming Direct) really not that big of an asset that it would impact college aid and, if there are any death/divorce issues, it's just $10k of the contract that's in jeopardy. I would think if you can afford a $60k DVC purchase, the remaining members could quickly come up with the buyout value for that 1/6th.

You don't just casually buy someone out in a situation like this. Depending on the situation, it can even be a crime or get you sued if you do it wrong.

If one person is involved in this kind of thing, it clouds title on the whole asset, and it's a hot mess to untangle. This can require lawyers, time, appraisers. It's a lot for a silly timeshare. Random example:
https://www.disboards.com/threads/k...-but-ex-is-now-filing-for-bankruptcy.3894488/

I'd either set this up correctly, or just have the others pay one person for the points.

 

[RivShore]

You have no idea what you are talking about. You don't just casually buy someone out in a situation like this. Depending on the situation, it can even be a crime or get you sued if you do it wrong.

If one person is involved in this kind of thing, it clouds title on the whole asset, and it's a hot mess to untangle. This can require lawyers, time, appraisers. It's a lot for a silly timeshare. Random example:
https://www.disboards.com/threads/k...-but-ex-is-now-filing-for-bankruptcy.3894488/

I'd either set this up correctly, or just have the others pay one person for the points.

You are right...I have no idea, which is why I posed it as a question.

When I said buyout, I thought it obvious that it would have to be legal and agreed to by all parties. I was just trying to point out it's a relatively small amount to cure any ills.

My main point still stands, yes it can be a mess but a very small value mess, in the grand scheme of the economy we now live in, where the average home is upwards of $500k.

 

[RoseGold]

When I said buyout, I thought it obvious that it would have to be legal and agreed to by all parties. I was just trying to point out it's a relatively small amount to cure any ills.

My main point still stands, yes it can be a mess but a very small value mess, in the grand scheme of the economy we now live in, where the average home is upwards of $500k.

It's not the value of the mess that's the problem, it's the messiness of the mess.

In a nasty divorce or a bankruptcy or a lawsuit, this can even be fraud.

Sure, his share worth 10K, but you want to get dragged into that divorce because her lawyer now wants to argue the payout should have been $12K? In complicated legal situations, courts can freeze assets, sell assets, they have a whole lot of power. And that's a lot for a timeshare you were just going to alternate years.

 

[KeithSS]

Seems like a family trust or LLC would be the best way to set it up, not only to protect the asset from "New" family members IE spouses etc, but also from probate and any other financial implications such as bankruptcy etc. Any reasons as to one would be better than the other in any of your experience? Seems like a trust would be harder to establish but easier in the long run vs an LLC

 

[AstroBlasters]

Seems like a family trust or LLC would be the best way to set it up, not only to protect the asset from "New" family members IE spouses etc, but also from probate and any other financial implications such as bankruptcy etc. Any reasons as to one would be better than the other in any of your experience? Seems like a trust would be harder to establish but easier in the long run vs an LLC

You really should speak to a legal professional because the laws of every state are different.

 

[KeithSS]

Oh i certainly plan on it, Im just asking what issues others have run into so that i know the proper questions to make sure i get answers to from the lawyer thats all

 

[Cfabar1]

My thoughts:

Given the longevity you are hoping to have from the contract, buy Direct. You’re hoping to pass this on to people who (from the sounds of it) might not even be born yet. You might like CC, but they might want to stay somewhere else, and won’t be able to with resale restrictions most likely. Additionally, given your incredibly long horizon, the extra 25% premium isn’t really “that much” per year. I would also buy ALL points direct so that each member of the family has an equal experience.

Further, my advice would be just buy the contract yourself. Leave the kids off of it, and let them use the points when they want to and pay the parents if that is necessary To make the finances work on the parent’s side.

If you can get Disney to split the contracts into 4 75 contracts even better! Then you can Have them bequeathed one per child after you pass away. If you are able to do so, maybe even allocate a portion of your will to cover the maintenance fees for a period of time as well.

I would consider this purchase very carefully… You are making plans about so far down the road in the future...

My last thought is 300 points does not sound like enough for a group of this size, (and likely growing) but without knowing their specific travel pattern, maybe it is sufficient.

 

[we"reofftoneverland]

As someone who grew up in a large family, this sounds like a nightmare. I don’t care how close your family is— things change and will change in some way. As Dave Ramsey says the only ship that is guaranteed to sink is a partnership and effectively that’s what you are talking about. I would go so far as to say this contract could ruin your relationships.