Question regarding long term membership transfer

[rotlex]

Ok, I'm probably missing this somewhere, and it seems like it should be simple, but here goes. I'm currently considering buying into DVC, have read tons, am understanding more each day. As morbid as this may sound, I have one question I can't find an answer too. What happens when you die? Seriously. Is the membership something that can be transferred to a family member, thinking daughter here, without costs or issues?

Don't get me wrong, I'm hoping to be around for, oh, quite a while yet, but 40-50 years from now, eh, who knows!

 

[jarestel]

Your interest can be passed on but the beneficiaries would then be liable for payment of the yearly maintenance fees. Or they could simply sell it if they wished.

 

[Caskbill]

It's a deeded interest and would be treated as part of your estate just like any other property you own.

It would go to whoever you listed in your will, or if you don't specifically list it, then it goes according to probate which would be your heirs, in order, such as spouse first, then children, etc.

 

[rotlex]

Thanks, as always, for the replies on this. I kind of assumed these things, but eh, didn't know for sure!

 

[CarolAnnC]

I would consult with an attorney regarding tax laws on inheritance. I know some things are left to spouses without tax obligation, but some bequests left to other individuals may be subject to inheritance tax.

As previously mentioned, the contract could always be sold if necessary.

 

[rotlex]

Thanks again all for the info. Of course I will verify all this if we finally purchase. I'm turning 40 this year, so eh, hopefully it won't be an issue for a LONG time, LOL, but it's good to know we could pass this along to our daughter say 30-40 years from now.

 

[bumbershoot]

Make sure with DVC about any transfer fees.

FIL recently died and had a share with...oh man I forget, but it was an RV/camping timeshare (that we really wanted to keep!) that he'd been a member of for a couple decades. He had always talked it up as though it could be passed on NO problem, easiest thing ever, but when we were calling and looking at the copy of his contract they sent us (he kept everything else but that contract was nowhere to be found), we found out that the transfer fee, even to a child of his (his contract could be passed for 2 generations beyond him), was far too high for us to handle with no advance notice. So we had to turn it back in (with no contract, and their copy being really sketchy, we didnt' feel comfortable selling it).

So make sure, and if you want to be SUPERnice to your daughter, if there is a transfer fee, create an account that has, or would have in time, that amount in it!


Do want to say, however, aren't most of the properties only "good" for 40ish years anyway?

 

[garnet1240]

What about adding them as an "associate" (if that is the right term) on the contract? If anything happend to myself or DH, could adult child still use? Now you've all got me re-thinking about our contracts. When I bought, I split both of our contracts at each resort, so each of our daughters would have points they could use. They have been my Disney buddies since small babes. Our intent was to pass these over to them when they have their own families (not trying to rush that, they are 16 & 20) Or ...and maybe this has been answered already on the boards...can the contracts be transfered to family memebers at some future date by us?

Thanks

 

[rigsby25]

subscribing to this thread - I would like to know if any one has done this yet.

 

[CarolAnnC]

Naming an Associate member does not provide them with ownership rights. The DVC must be listed in one's will and passed on that way.

When one dies without a will and there is no surviving spouse, I believe the courts decide how the properties and moneys are left and divided. This would depend on state laws and an attorney should be consulted.

I have put off drawing up my own last will and testament and it is on my to do list for this year. Morbid, but a necessity of life...to arrange one's affairs.

 

[JimMIA]

What about adding them as an "associate" (if that is the right term) on the contract? If anything happend to myself or DH, could adult child still use? Now you've all got me re-thinking about our contracts. When I bought, I split both of our contracts at each resort, so each of our daughters would have points they could use. They have been my Disney buddies since small babes. Our intent was to pass these over to them when they have their own families (not trying to rush that, they are 16 & 20) Or ...and maybe this has been answered already on the boards...can the contracts be transfered to family memebers at some future date by us?

Thanks

One way to do this is to create a trust and transfer the ownership of your DVC to the trust. The transfer will have to pass ROFR, but DVC processes those routinely without exercising ROFR.

Whatever you do should be one part of a comprehensive estate-planning process, not an isolated decision dealing only with DVC. It is possible to set up a trust for a single asset, but as a person who once had to go through the process of consolidating 39 individual trusts (with different names, owners, trustees, etc.) into one, I can tell you it's a nightmare. If you create individual trusts for different assets, you are always going to have inequities, legal complications, and gaping holes in your estate plan.

If you decide to look at the trust option, I'd encourage you to go to a local attorney who specializes in trusts and estates, and who really knows what they are doing.