Including other people on a contract - anything I need to think about?

[HFJohnson]

I'm hoping to put an offer on a resale contract soon, however DH doesn't want to be named on it so I'm thinking about alternatives as I'd rather it wasn't just in my name.

My children are the next option but they're only 18 and 21 so I don't want them to be burdened with any admin. Am I right in assuming they'll only have to sign a couple of things (electronically?) when the contract is set up and then they won't need to worry about until I'm no longer around?

Obviously I will be paying the dues myself but if I get any rental income (I'm hoping to rent out points every other year, at least initially), will the profits technically be split between us for tax purposes (I'm from the UK)?

Thanks

 

[Ruttangel]

Yes, most title companies use e-signatures via docusign
Never a good idea to take chat boards as exact tax advice but here is what I understand
Renting points via a US rental company will mean they won’t accept your points unless you have a US tax number called an ITIN
One exception is https://dvcrequest.com/dvc-owners/information who put this disclaimer up instead
We do not issue any income reporting information to any tax authorities. It is your responsibility to report any personal income you may receive.

If you rent yourself it will depend how you get paid and how much you are paid whether you trigger formal reporting. Do some research on all of this so comply. Renting yourself can have its own pitfalls

You can currently receive £1k per year, per tax paying owner, tax free but that doesn’t exclude you from paying tax to US gov, so you should get an ITIN regardless

It might just be me but I’m not getting strong vibes that DVC is perfect fit, going every other year could be that UK free dining deals are better value, you’ll get greater options like value and moderate resorts and less risky than owning

 

[HFJohnson]

Yes, most title companies use e-signatures via docusign
Never a good idea to take chat boards as exact tax advice but here is what I understand
Renting points via a US rental company will mean they won’t accept your points unless you have a US tax number called an ITIN
One exception is https://dvcrequest.com/dvc-owners/information who put this disclaimer up instead
We do not issue any income reporting information to any tax authorities. It is your responsibility to report any personal income you may receive.

If you rent yourself it will depend how you get paid and how much you are paid whether you trigger formal reporting. Do some research on all of this so comply. Renting yourself can have its own pitfalls

You can currently receive £1k per year, per tax paying owner, tax free but that doesn’t exclude you from paying tax to US gov, so you should get an ITIN regardless

It might just be me but I’m not getting strong vibes that DVC is perfect fit, going every other year could be that UK free dining deals are better value, you’ll get greater options like value and moderate resorts and less risky than owning

Thanks, that's really helpful. I'm pretty happy about the tax element, I just wanted to be clear about the ownership side of things and I'm not going to place any burden on the kids that I haven't thought about.

What do you feel is risky about DVC (not saying you're wrong, I just want to make sure I have all the info)?

Having stayed at values and moderates, and deciding that values are definitely not for me as a solo adult, I feel like I can get a deluxe stay every couple of for a similar outlay and while I might go every other year initially I envisage this increasing to every year later on, or I bank points for stays in larger rooms.

Is the renting points issue I should be concerned about?

 

[DL1WDW2]

Yes there are many concerns to investigate if you plan to rent your points.

 

[HFJohnson]

Yes there are many concerns to investigate if you plan to rent your points.

Would be willing to expand on this? I feel happy with the process and what I should be able to rent points out for, and I will check the tax implications separately. What other issues should I be considering?

Thanks

 

[Sandisw]

Do you already own one with DH? If so, this would be a new membership and you can’t combine points with the other points without a transfer.

 

[HFJohnson]

Do you already own one with DH? If so, this would be a new membership and you can’t combine points with the other points without a transfer.

No, it’ll be my first contract

 

[Sandisw]

No, it’ll be my first contract

Okay! Then just be aware that all future contracts will have to have the same owners to be part of the same membership.

If not, you will end up with more than one!

 

[miTnosnhoJ]

In the US, if your children are on the contract, and they grow up and get married… then if they get divorced, this can be considered a marital asset. So the spouse of your child can get a share of points, or force a sale.
Not sure about the UK.

 

[HFJohnson]

In the US, if your children are on the contract, and they grow up and get married… then if they get divorced, this can be considered a marital asset. So the spouse of your child can get a share of points, or force a sale.
Not sure about the UK.

That's a good point, I should think it would be the same in the UK.

 

[juliebee]

In the US, if your children are on the contract, and they grow up and get married… then if they get divorced, this can be considered a marital asset. So the spouse of your child can get a share of points, or force a sale.
Not sure about the UK.

Also, I learned this last year, if my 22 year old had been on our DVC contract, we could have lost it. We are in the US. The 22 year old was in a car accident (their fault) and sideswiped a car. The person in the other car ended up suing my kid/their car insurance company because they weren't happy with the settlement that the auto insurance was willing to pay. However, my kid doesn't have any assets since they are a college student and live at home. However if they had been on the DVC contract, even though they didn't pay for the contract or do anything with the contract, it would have been their asset and could have been lost in the court case. I was glad we had put our contract in a Trust with just myself and my husband as the Trustees, until both of our deaths, when it will go to our two children.

 

[CarolynFH]

Another issue in the US that might not be in the UK is that the DVC contract counts as the child’s asset when applying for college financial aid.