purchasing for children question

[MichelleB]

I would like to purchase points for my children which would be theirs when they are of a certain age (25 is my thought which would be about 10 years from now). My question is this....can I purchase these points today and add my child on the contract? If not, is there a way to stipulate so that I don't need to go through "selling" it to them when they're older? Any suggestions as to how to do this?

 

[lmb]

I looked into this also and what I was told is that there are 2 options:
1) Add them now as an associate member which gives them no DVC card, no discounts, but availability to book rooms now and later (across ALL contracts you have) or 2) transfer the title at the time you want them to have the contract and then you'd pay some title transfer fees of about $150. We haven't done it though so others may have more accurate info.

 

[MichelleB]

Anyone know anything about the title transfer option????

 

[Chuck S]

The above poster is correct. Remember, when re-titling the membership, it requires a new deed and a waiver of ROFR from Disney, then filing with the appropriate county recorder/clerk. The loan/mortgage, if any, also has to be satisfied prior to re-titling. Also any reservations that are made would be canceled when Disney re-assigns the membership. Though more costly than doing it yourself, you may want to contact a timeshare closing company, they should be able to draw up any necessary papers and file them for you, for a fee, of course.

Once re-titled, the membership belongs to your children, you are no longer responsible for dues etc, as long as you are notshown as an owner on the new deed.

If you want to keep the membership in your name, until you leave it to them as part of your estate, then an adding them as an associate would be fine, but they would not get any membership perks or benefits, like the AP discount, if they no longer reside with you.

 

[Deb & Bill]

You could not do an add-on and change the names on the existing contract. You'd have to buy a new contract to add another name to the contract.

Plus, if they are looking at financial scholarships in the near future, this would count as an asset in their name. Also, if they encounter financial troubles, this again would be an asset that could be collected from them to pay off the financial problem.

I'd leave it as part of your estate until they get to a time in their life when they could afford to pay the dues on their own.

 

[DisneyCowgirl]

Deb&Bill hit on the first thing that popped into my head--this could interfere with application for financial aid for college! I don't know for sure, but I'd look into it.

 

[nunzia]

So..if you intend to leave your points to your children you should NOT add them as an associate, but rather just have it spelled out in the will?

 

[dizplanner]

There is nothing wrong with putting them on as an associate - that won't count against because they don't own anything. Although there is no point in doing so until they are old enough to make and use reservations without you.

They were just saying that putting their names on the deed can have unanticipated consequences - financial aid impact (maybe), being taken if they file bankruptcy, their spouse getting it in a divorce, etc.
My biggest concern is that you don't want to give it to them until they are financially comfortable enough to pay the dues - and you need to make sure they really want it (unless you don't care if they immediately sell it and use the money for something else). A DVC is a gift with strings - nice but you need to make sure you are not creating problems by being generous.

My suggestion would be to buy the number of points you need now and not buy points to give away ten years in the future. You can divide your points into different contract based on the number of kids you have (or the number of kids that you plan to leave DVC to). Then just put it into your will as to who gets what contract. Later when the kids are older and want to use the DVC and you want them to make the reservations on their own, you add them as associates. In the more distant future when they are in a spot to pay the dues and they want the contract, you do the title transfer.