Including kid's names on the deed?

[jenny2]

We currently own 200 points at SSR. It's enough (for now, lol) but we can definitly see that we'll "need" to add on in the future. Our plan was to get 2 more 150 point contracts giving us 500 points to use. What I was thinking of doing was putting my DD's name on one contract (along with myself and DH) and DS's on the other. We have no intention of telling them this, lol (they're 4 and 2). Then, for the next 15 years or so or for as long as we vacation together we'll use the points for family vacations. At some point (college graduation? marriage?) we plan on giving the contracts to the kids. We figure by the time they're ready to vacation on their own we won't need the points for us anymore (and if we do, we can pick up another contract for us!). Plus... what a great gift!! I thought that if their names were on the deeds we wouldn't need to go through adding them, or "selling" it to them, and they could make their own reservations.

Has anyone done this? Put their kids names on the deed... I mean. Are there any drawbacks? Can I even do this since they're so young?

 

[DisneyHumbug]

IIRC they have to be 18 to have their names on the deeds. Or maybe it's even 21. I put my DD as an "associate" on mine since she was the only one over 18 when I bought.

 

[crisi]

Someone pointed out that it will be an asset for them...

Which means that if your 21 year old kid declares bankruptcy - the courts could force a sale of the contract.

I'm sure my kids will turn out just fine and not cause us any problems. But I'm not so sure that I want them to own property with me until they have a track record of responsible behavior -- and I'm sort of anticipating a period of irresponsible behavior as teens/young adults (most people do, right?). I'd rather they not use all my points for keg parties with their friends at OKW.

 

[jel0511]

As crisi noted, IF you can do it, it will be counted as an asset that your children own. Which can completely throw off any financial aid calculation for college, since their assets count 100% towards their ability to pay for college. Another reason to keep all college funds out of the children's names.

 

[jenny2]

True, I wasn't thinking that it would be considered their asset as well as my own. And we definitely don't want to hurt college financial aid in any way, lol! Thanks for the input.

So that leads me to this... lets assume the contracts are in my name, and the kids make it to be responsible, dependible adults and we want to "sell" them the contract (and assuming that *gasp* they want it!). I'm guessing that Disney won't allow a direct sale like that and still has the option of ROFR?

 

[jel0511]

True, I wasn't thinking that it would be considered their asset as well as my own. And we definitely don't want to hurt college financial aid in any way, lol! Thanks for the input.

So that leads me to this... lets assume the contracts are in my name, and the kids make it to be responsible, dependible adults and we want to "sell" them the contract (and assuming that *gasp* they want it!). I'm guessing that Disney won't allow a direct sale like that and still has the option of ROFR?

Actually, it's pretty easy and using today's prices only costs about $300 - $400. All you have to do is transfer the ownership to them, which of course means a new deed. Any of the timeshare closing places will be willing to help you out, and DVC can also be an excellent guide here. I believe it does have to go to ROFR, but what can DVC exercise on, you're giving it to one of your children. One thing to remember, when you do "give" it to them, you might face tax consequences as there is a gift tax for gifts over $10k. Down the road 150 points might not be worth $10k, and the federal gift amount might have gone up, but something to keep in mind.

 

[NCRedding]

Another issue with minor's owning a real property interest--if you decided to sell the property for any reason, a special proceeding would need to be done authorizing the minor's interest to be sold--in our state--that is quite a big deal--costs run about $1500 to do so.

 

[lizziepooh]

Just my opinion, but personally, I wouldn't be in a rush to gift it to them at 21 either. Sometimes they marry someone who isn't financially responsible and that creates problems. In case of divorce, the nice DVC gift that you gave them ends up having to be sold. I'd put them on as an associate if you want to when adults, but hold on to the title until it appears that their lives and finances are stable.

 

[rocketriter]

Although I agree with other posters who recommend keeping the kids' names off the contract for the time being, I do commend you for buying your points in several contracts rather than one big lump. Whether you sell, gift or leave points to your kids as a bequest, Disney won't let you break a contract into pieces. So you'll find your current arrangement much easier to pass on.

 

[Pa@okw95]

Don't put your children's name on anything. That cute little 4 year old or 2 year old could become a real menace to you down the road. They can go bankrupt or sell the property without telling you or worse, who knows. Don't say never with my kids, trust me anything can happen. You paid for it, keep it in your name.

 

[Cruelladeville]

I agree, your wonderful, loving child will become a monster for awhile during their adolescence, and could easily do something very stupid and you cannot protect them. Then that contract ends up in court, and it's lost. You can't imagine all the stupid things that young people can do. Trust me on that one, you will never see it coming Also--how much are the dues on that contract??? Do you really want to saddle your child with a yearly bill of $600 or more?? Unless your kid marries Paris Hilton or Donald Trump, he probably won't have the money for the dues, no matter how much he/she makes. Keep the control in your hands, and give them a "gift" of points for the year. And when your young adult has a drunken bash, with kids having sex on the balcony, and trashing the room--you can refuse to give him those points until he/she begins to act more responsibly.

 

[jenny2]

LOL, lots of good points made. I wasn't in any rush to give it to them, and seeing as how my 16 year old niece is living with us, I'm full aware of how a cute, darling little girl can turn into a troubled teen I guess I was underestimating the amount of control they would have by having their names on the deed. I fully intend to keep control of the points until DH and I think their "ready", but as a few of you pointed out a better plan would probably be to keep total control of the points and give them gifts of pointed vacations when they deserve it.

Thanks for all who responded!

 

[Sarahsal]

I would recommend speaking to your estate planning attorney (given the ages of your children I'm assuming you have made arrangements for your estate and trusts for your children.) State laws vary widely, and federal taxes...well you get the idea.