Parents have passed away..... can we continue to use DVC points as Associates -- long term?

[RaineyP]

My entire family (siblings/parents) own DVC points -- my parents quite a few. With our parents passing, I believe we are technically supposed to go through probate in Florida and get the title transferred. I'd like input as to if this is really necessary what the cons are of just leaving it as is.
There was a will which leaves the DVC ownership to the 4 siblings. My father insisted before he passed that we could just operate as we had been and not notify Disney. We are all listed as Associates on the contracts. We all know how DVC works and we all get along. I manage the points as well as payment of the dues each year. For 2 years it has worked just fine. However, we have a bit of worry as we officially finalize settlement of the estate if this will haunt us at some point in the future. The assumption is that at least one of us will outlive the 2057 deed expiration date.
I'd appreciate any thoughts or input on pros/cons which the approach we have been taking and/or if anyone else is managing legacy ownership this way. Thank you!

 

[_auroraborealis_]

With our parents passing, I believe we are technically supposed to go through probate in Florida and get the title transferred.

It's not just technically. If the deceased was sole owner, or co-owned the property without right of survivorship, title passes according to the will. Whoever the will names as the beneficiary to the property inherits it, which requires filing a new deed confirming her title. If the deceased died intestate -- without a will -- state law takes over.

The will governs the behavior, and will require the re-titling of the property.

You can't just leave it in a dead person's name. An Associate is not a co-owner.

 

[Marionnette]

My entire family (siblings/parents) own DVC points -- my parents quite a few. With our parents passing, I believe we are technically supposed to go through probate in Florida and get the title transferred. I'd like input as to if this is really necessary what the cons are of just leaving it as is.
There was a will which leaves the DVC ownership to the 4 siblings. My father insisted before he passed that we could just operate as we had been and not notify Disney. We are all listed as Associates on the contracts. We all know how DVC works and we all get along. I manage the points as well as payment of the dues each year. For 2 years it has worked just fine. However, we have a bit of worry as we officially finalize settlement of the estate if this will haunt us at some point in the future. The assumption is that at least one of us will outlive the 2057 deed expiration date.
I'd appreciate any thoughts or input on pros/cons which the approach we have been taking and/or if anyone else is managing legacy ownership this way. Thank you!

My condolences on your loss.

Unfortunately, I think you will have to go through probate in FL to settle ownership. A deceased person cannot have title to property and you technically cannot settle the estate until all assets have been distributed as per the deceased person's will.

 

[RaineyP]

It's not just technically. If the deceased was sole owner, or co-owned the property without right of survivorship, title passes according to the will. Whoever the will names as the beneficiary to the property inherits it, which requires filing a new deed confirming her title. If the deceased died intestate -- without a will -- state law takes over.

The will governs the behavior, and will require the re-titling of the property.

You can't just leave it in a dead person's name. An Associate is not a co-owner.

Thank you both for your input. Here's a follow up -- so once we notify DVC of this passing, what happens? Will we need a lawyer in FL (we live in MN)?
Is probate automatic (we've already gone through probate in MN)?
We all have vacations scheduled using our parents points -- from now through next spring. Is there any risk they (DVC) would need to cancel those while this all gets sorted?
Any input from anyone out of state of FL who has gone through this process would be appreciated.
Again, there is a will which names all 4 of us as co-owners (and is that in itself an issue? 4 co-owners?)
Thank you!

 

[_auroraborealis_]

Thank you both for your input. Here's a follow up -- so once we notify DVC of this passing, what happens? Will we need a lawyer in FL (we live in MN)?
Is probate automatic (we've already gone through probate in MN)?
We all have vacations scheduled using our parents points -- from now through next spring. Is there any risk they (DVC) would need to cancel those while this all gets sorted?
Any input from anyone out of state of FL who has gone through this process would be appreciated.
Again, there is a will which names all 4 of us as co-owners (and is that in itself an issue? 4 co-owners?)
Thank you!

You will need an attorney in Florida, as the property is deeded in Florida. They will need to file the will that indicates the inheritors, and then the process to retitle is pretty straightforward.

 

[DonMacGregor]

You will need an attorney in Florida, as the property is deeded in Florida. They will need to file the will that indicates the inheritors, and then the process to retitle is pretty straightforward.

This right here. Real estate is probated in the state where it is located.

 

[CarolMN]

This is one of the major advantages of a trust. No need to go through probate. Many people use trusts when they own property in more than one state.

Sorry for your loss. You do need to consult an attorney licensed in Florida.

 

[Gatrcruzer]

Just wanted to say that I am so sorry to hear about the loss of your parents. It is so hard to lose parents, and I'm sure it must be tough for you, even outside of dealing with the legal issues associated with DVC points. Good luck in navigating through this, and I hope that it all goes smoothly.

 

[bakerworld]

Thank you for asking this question. We were toying with the idea of making the kids associates but now I think we'll just add them to the deed instead.

 

[Shelly F - Ohio]

Since Assoc can only make a reservation and bank points it would b in your best interest to have it put into your name. If you ever had to call in about an issue DVC would not be able to discuss anything with you or help you out with anything like changing the mail address on the contract. Putting the contract in your name also gives you the ability to purchase the annual pass for a DVC member if their contract was bought directly from Disney. Right now associates cant get that pass.

 

[RaineyP]

Thank you for asking this question. We were toying with the idea of making the kids associates but now I think we'll just add them to the deed instead.

My dad was going to put at least one of us on the deed. We started the process but unfortunately ran out of time. It definitely would have been the way to go.

 

[zavandor]

Since Assoc can only make a reservation and bank points it would b in your best interest to have it put into your name. If you ever had to call in about an issue DVC would not be able to discuss anything with you or help you out with anything like changing the mail address on the contract. Putting the contract in your name also gives you the ability to purchase the annual pass for a DVC member if their contract was bought directly from Disney. Right now associates cant get that pass.

It's a wise suggestion. I would put the contract in the name of all siblings so you all can access the perks (if the contract qualifies).

 

[drusba]

As to the issue of whether you need to go through probate in Florida, the answer is that it is legally required for the estate to do so and whoever was the designated executor of the estate in the will should have already started the process. In fact, it surprises me that if you had an attorney for the Minnesota probate that the process was not started before that probate ended. I assume the DVC property was revealed as part of the assets of the estate in Minnesota, i.e., though probate for that asset occurs in Florida, it is property that must be revealed as part of the Minnesota probate, including because it is an asset that needed to be considered as required information that had to be submitted for any estate tax returns that were done before closing the estate procedure in Minnesota, even if there were no estate taxes owed, i.e., if the the property was not revealed as part of the estate, there could an issue as to whether the Minnesaota estate was properly done.

Absent a surviving owner on the deed or a trust situation, your parents death automatically resulted in a freeze of the use of the property based on whatever existed at time of death. As to whether DVC would cancel your existing reservations once it learns of the death, though a possibility, it is likely that the reservations that existed at time of death will remain in place if the designated executor of the estate does not challenge that. Nevertheless, if any of those reservations were made or modified after the deaths, there could be an issue of cancellation since court approval may be required for such actions.

Bottom line: you should get an attorney in Florida and start the probate process ASAP. What kind of probate, regular or summary, depends on the fair market value of the DVC property that your parents owned. (I am assuming they did not own other real estate in Florida, but if they did, that other property and its value also need to be part of the probate proceeding). If the total value of Florida property owned by your parents is more than $75,000 then regular probate applies and will take some time. If the value is $75,000 or less, you can seek the summary procedure which mainly consists of filing a necessary petitiion for summary administration signed by the designated beneficiaries in the will, with supporting documentation, and then the process of completing the procedure is fairly quick.

 

[bumbershoot]

Thank you for asking this question. We were toying with the idea of making the kids associates but now I think we'll just add them to the deed instead.

Just be aware that if they run into bankruptcies or nasty divorces, a portion of those points you all share will be part of those processes.

 

[pirate33]

This is one of the major advantages of a trust. No need to go through probate.

Agree with need to consult a FL attorney and get the procedures done for all manner of reasons. And for those fellow DVC owners still around, I must second the suggestion to set up a living trust to make things easier for your heirs. When my husband passed earlier this year, I was able to settle our DVC contracts easily with the trust papers. Going through probate is a major hassle and can be very expensive, at least here in California where the courts impose a surcharge on probate property that is quite hefty when it comes to real estate.

Also I cannot even begin to emphasize how much bureaucracy and paperwork I endured; suffering through a protracted and expensive probate would have bordered on intolerable. In addition--and not just for DVC--having a living trust will be a big help for you and those who love you if you become disabled and need help managing your business affairs.

My mother also passed recently, and she got her papers in order to establish a trust just days before she passed. That was a huge blessing to all three of her kids but especially me as the person charged with administering her estate.

Keep the DVC part of your life simple and avoid future family disputes by clearing up title now rather than delaying it. Good luck!

 

[pirate33]

In addition--and not just for DVC--having a living trust will be a big help for you and those who love you if you become disabled and need help managing your business affairs.

As I think about it, a durable power of attorney may be the most important (or primary) document for this situation in which you become disabled—but that is why you need to consult an attorney to get your affairs in order. It really is a gift to those who will help you in a time of need and whom you will leave behind, as I can personally attest.

 

[RaineyP]

As to the issue of whether you need to go through probate in Florida, the answer is that it is legally required for the estate to do so and whoever was the designated executor of the estate in the will should have already started the process. In fact, it surprises me that if you had an attorney for the Minnesota probate that the process was not started before that probate ended. I assume the DVC property was revealed as part of the assets of the estate in Minnesota, i.e., though probate for that asset occurs in Florida, it is property that must be revealed as part of the Minnesota probate, including because it is an asset that needed to be considered as required information that had to be submitted for any estate tax returns that were done before closing the estate procedure in Minnesota, even if there were no estate taxes owed, i.e., if the the property was not revealed as part of the estate, there could an issue as to whether the Minnesaota estate was properly done.

Absent a surviving owner on the deed or a trust situation, your parents death automatically resulted in a freeze of the use of the property based on whatever existed at time of death. As to whether DVC would cancel your existing reservations once it learns of the death, though a possibility, it is likely that the reservations that existed at time of death will remain in place if the designated executor of the estate does not challenge that. Nevertheless, if any of those reservations were made or modified after the deaths, there could be an issue of cancellation since court approval may be required for such actions.

Bottom line: you should get an attorney in Florida and start the probate process ASAP. What kind of probate, regular or summary, depends on the fair market value of the DVC property that your parents owned. (I am assuming they did not own other real estate in Florida, but if they did, that other property and its value also need to be part of the probate proceeding). If the total value of Florida property owned by your parents is more than $75,000 then regular probate applies and will take some time. If the value is $75,000 or less, you can seek the summary procedure which mainly consists of filing a necessary petitiion for summary administration signed by the designated beneficiaries in the will, with supporting documentation, and then the process of completing the procedure is fairly quick.

@drusba - can you start a private conversation with me> I can't figure out how to do it. Thanks

 

[Disneypapa]

Good to know and appreciate 'all" sharing this information and their experiences.

 

[DL1WDW2]

Five essential documents :
Will
Health Care Proxy
Living Will
Power of Attorney
Digital Diary…

What is a digital diary… You need to designate a legal directive to dispose of your digital life that will outlive you .
Might not sound important but it will present an opportunity for Fraud and perhaps somebody stealing your identity in deep dark web…
Apple.com Settings has a Legacy Contact directive .
Think of all the information about you online ? Kinda scary .

 

[miTnosnhoJ]

People have given you all the legal reasons to go through probate and retitle. There is also a financial reason. When assets pass at death, the cost basis is updated to today’s values. So if your parents paid $100 per point, and the current market is $200 per point, your basis gets marked up to $200 per point. So if you ever sell, you would pay tax on profits above $200 per point, rather than profits of over $100 per point.