Parent are DVC owners - what does that mean for me?

[PrincessPAC]

My parents are new DVC owners and they were explaining how eventually I would take over the yearly costs, etc. They got me so confused that I finally just said "OK, I see" and I changed the subject. What exactly are they talking about and what do I have to look forward to?

 

[n2mm]

I'm sure you had the same look my daughter did when I tried to explain it to her too. Sorry, don't mean to pick on you. I think as your parents use it more and more and you use it more, it will become familiar to you. I keep trying to keep my daughter up to date of everything I do, but she seems only to like me making all of the reservations and just telling her and her family when we're going. Since my daughter is an owner on my account, I even try to get her to set up an online account so she can get use to it. I think she's just in denial that I might not be around one day to take care of the DVC stuff. Good luck!

 

[Judy WI]

My parents are new DVC owners and they were explaining how eventually I would take over the yearly costs, etc. They got me so confused that I finally just said "OK, I see" and I changed the subject. What exactly are they talking about and what do I have to look forward to?

They are leaving you an inhertance that is going to cost you money each year. The points they have purchased have a yearly fee attached to them and can be willed to family. So when you get these points turned over to you in your inhertance you will have to pay about $5.00 per point per year. (this is the current rate it goes up each year). Of course they could sell their contract before that be comes an issue and if and when it becomes yours you can also sell.

One thing the contract points your parents purchases are not good forever. Depending on what home resort they have their points are only good until the year 2042 or 2054.

 

[PrincessPAC]

Okay, things are a little clearer. Their home resort is SSR. n2mm, I'm a lot like your daughter - I just kind of leave everything (all the planning) up to my Dad, although I do try to suggest the best times to go and what we can do once we get there. Since this is an inheritance and my parents are only in their 50s, hopefully it will be a long, long time before I have to worry about anything! They say they bought into DVC because of my kids - they love, love, love taking them to WDW (DH & I just kind of go along for the ride I guess - even though we act like big kids once we get there!). Anyway, thanks for the information!

 

[Caskbill]

As an inheritance, it's probably a number of years off anyway.

As owners, your parents actually purchased a deeded real estate interest in the property (SSR at Disney World). This can be willed to others just like any other property can be willed. For example, they can will to you their curent house where they now live.

If they will their existing house to you as an inheritance, then when you receive it you will have associated costs of owning it. Such as taxes, maintenance, utilities etc. Costs you're familiar with as owning your own house.

DVC comes with associated costs also. They are lumped into the category called dues, which are used by DVC to pay for taxes, maintenance, utilities, etc.

And just like a house, you could keep the property and continue to pay the associated costs, or you could choose to sell it, take the money from the sale, and no longer have any costs.

Hope this helps.

 

[PrincessPAC]

You guys are really clearing things up for me. Thanks!!!

 

[BroganMc]

What exactly are they talking about and what do I have to look forward to?

You have years of future trips to Disney (and its associated properties) freely comp'ed and provided for by your loving and charitable parents, who by the sound of it want to bestow that charity on your children as well.

If you signed papers then it also means they made you owners on the contract giving you all the cool benefits we members get (discounts on Annual Passes and special events for you and anyone living in your house, periodic newsletters, invites to members-only events, access to the online planning and information center).

If you didn't sign anything than that means your parents intend to will the property to you. Once they're gone, you can continue to take your grown children, visit yourself or possible take your grandchildren up until 2054 (47 years from now). You'll have to pay the annual dues (currently $4.64 per point at SSR) but there's no upfront cost. Your parents have already paid that for you ($80-100 per point and expected to rise).

When my dad (a 75 y.o. granddad of 9 rugrats) and I (Auntie Mame of the family) purchased DVC last year, we named all three of my siblings as owners on the contract. Our reasoning was that we wanted to make it something they could easily inherit so the entire family would have a chance to enjoy the magic of Disney. We're the principles and I am designated the one to manage the account with Disney, but we have an open door policy with my sibs. All they need to do to have a Disney vacation is tell us when. My sister and her boys will be joining us in a couple weeks to celebrate birthdays, her anniversary and Halloween Disney style. All she had to do was take off work and buy airline tickets. I did all the planning and calling.

My sister is notorious for never planning anything until the last possible moment. But once she got the latest DVC newsletter telling all about the Halloween parties, she suddenly got very excited. (Very cute too. She called me up to tell me our travel dates coincided with a special DVC member discount date of the Halloween party. Without I beat I told her "Yeah I know. I bought tickets for all of us months ago." It was first announced on the DIS and I jumped like a good Disney planner.) Her boys can't stop talking about their costumes and what rides they're brave enough to try. And my dad and I are just hoping they have a good time.

So relax. Enjoy the gift you've been given and remember to thank your folks. They did this because they love you and your family, and they want to share that quality vacation time with you.

 

[DVC Grammy]

My parents are new DVC owners and they were explaining how eventually I would take over the yearly costs, etc. They got me so confused that I finally just said "OK, I see" and I changed the subject. What exactly are they talking about and what do I have to look forward to?

In my family, it wouldn't be my daughter who has this reaction ................it would be my DH!
(He has the same reaction to balancing the checkbook: .)