Splitting DVC among family

[jthelman]

My immediate family goes to Disney about every other year, and we stay at deluxe most of the time.

My brother's family has very young children and will most likely start heading there for vacation soon. In addition, my parents, although getting a bit older, enjoy spending time at Disney with the grand kids.

We are considering splitting a contract of about 280 pts 3 ways, and from what I can tell, that would allow a 2 bedroom for most of the year at Boardwalk/Wilderness/Beach. Between the 3 families, we'll definitely use the points and I'm sure our kids will use them years from now.

Each of the 3 families has a different address, so if we do this, it looks like one family will need to be the owner of the contract, and that will limit only 1 of the 3 parties to get annual pass discounts -- right? Same deal with stuff like the dining plan and TIW?

Any other pitfalls I'm not seeing if we do this? Ignore the obvious "fighting over the use", I'm just talking rights and what things Disney won't let us split. We'd still probably buy, but I want to know the details before we pull the trigger.

Thanks!

 

[amberjack]

My immediate family goes to Disney about every other year, and we stay at deluxe most of the time.

My brother's family has very young children and will most likely start heading there for vacation soon. In addition, my parents, although getting a bit older, enjoy spending time at Disney with the grand kids.

We are considering splitting a contract of about 280 pts 3 ways, and from what I can tell, that would allow a 2 bedroom for most of the year at Boardwalk/Wilderness/Beach. Between the 3 families, we'll definitely use the points and I'm sure our kids will use them years from now.

Each of the 3 families has a different address, so if we do this, it looks like one family will need to be the owner of the contract, and that will limit only 1 of the 3 parties to get annual pass discounts -- right? Same deal with stuff like the dining plan and TIW?

Any other pitfalls I'm not seeing if we do this? Ignore the obvious "fighting over the use", I'm just talking rights and what things Disney won't let us split. We'd still probably buy, but I want to know the details before we pull the trigger.

Thanks!

Two owners of a contract can have separate addresses. DH and his GM are listed as co purchasers on our contracts. We don't live in the same house as her, but all get discounted AP's. They have separate member id #'s too.

 

[Dean]

My immediate family goes to Disney about every other year, and we stay at deluxe most of the time.

My brother's family has very young children and will most likely start heading there for vacation soon. In addition, my parents, although getting a bit older, enjoy spending time at Disney with the grand kids.

We are considering splitting a contract of about 280 pts 3 ways, and from what I can tell, that would allow a 2 bedroom for most of the year at Boardwalk/Wilderness/Beach. Between the 3 families, we'll definitely use the points and I'm sure our kids will use them years from now.

Each of the 3 families has a different address, so if we do this, it looks like one family will need to be the owner of the contract, and that will limit only 1 of the 3 parties to get annual pass discounts -- right? Same deal with stuff like the dining plan and TIW?

Any other pitfalls I'm not seeing if we do this? Ignore the obvious "fighting over the use", I'm just talking rights and what things Disney won't let us split. We'd still probably buy, but I want to know the details before we pull the trigger.

Thanks!

You can do what you want, a family partnership owning DVC in this manner is a bad idea on so many levels. Far too many risks and problems for my taste. I know there are those that have done it successfully but if things go wrong, it changes your relationships forever. That being said, I have a smaller contract with my daughter on it but I'm in control of it. Far less risks of financial issues and conflict with mine than most people and besides, I'm often paying for her anyway, LOL. You can have multiple names and addresses if you want and all at each address who also meet the other qualifying parameters would get benefits and discounts including the AP. If that's your goal, buy in and add a 25 point contract with any additional names and just transfer the points every year to the main contract. Get any arrangements in writing so there is no conflicts later.

 

[got4boys]

I would recommend each family buys 100 points . So the total would be 300 points every year of combined together or each family can bank and borrow to get 300 points every three years.

When I purchased last year via resale, I wanted to put my children (two are over 18) on the contract, but it was suggested to not to.

 

[Lynne M]

Look at it this way....would you buy a house with all of the parties involved? Because this is a real estate purchase. It's an asset that would be in play if any of the families divorces or declares bankruptcy. How would the payments be divided up? What if one of the families suffers unexpected major expenses, or loses a job, and that makes them unable to pay their share of the maintenance fees and/or loan?

What if one of the families decides they no longer want to own DVC? Are the other two families willing to buy them out?

It's SO much better for each family to own their own contract.

 

[CKCruising]

I would recommend each family buys 100 points . So the total would be 300 points every year of combined together or each family can bank and borrow to get 300 points every three years.

When I purchased last year via resale, I wanted to put my children (two are over 18) on the contract, but it was suggested to not to.

I'm not necessarily a fan of 3 parties owning one contract, but each family owning 100 would never allow for the 300 points to be used together. You can only transfer in or out once, so you could get one contract up to 200 points.

 

[sweetdana]

I would recommend each family buys 100 points . So the total would be 300 points every year of combined together or each family can bank and borrow to get 300 points every three years.

When I purchased last year via resale, I wanted to put my children (two are over 18) on the contract, but it was suggested to not to.

The risk verses reward are so great vrs so little. If one wants to sell, cause of finances, what about if one of you needs bankruptcy, or points end up in holding due to an accident, one family borrows and cannot use them, ..or borrows to many. There is no reason to not have your own. You can borrow, bank and transfer points as needed.

 

[sweetdana]

I'm not necessarily a fan of 3 parties owning one contract, but each family owning 100 would never allow for the 300 points to be used together. You can only transfer in or out once, so you could get one contract up to 200 points.

You can borrow and bank. If I use 100 this yrs points 100 next yrs points and 100 points transfer thumbs up. Or, skip the 1st yr, and bank them. They will have 100 banked points, plus current points and even borrowed points the next yr. It can def work the same way. If each are planning on going once every 3 yrs. (or maybe sharing every 3 yrs, taking turns booking. Having 280 current points used by 3 parties, once every 3 yrs is no diff than 100 points every yr. for 3 people.

 

[Lynne M]

I'm not necessarily a fan of 3 parties owning one contract, but each family owning 100 would never allow for the 300 points to be used together. You can only transfer in or out once, so you could get one contract up to 200 points.

Sure you can, lots of owners handle it this way - one family reserves the first few days of the vacation, the other family reserves the next few days. They ask MS to link the reservations.

 

[castleri]

If you all buy a 100 point contract you should also decide if you all want the same home resort. It could work well if you plan to each make part of a reservation and then link them. That way you get the 11 month adavantage. If you were to buy different home resorts you would be able to use the banking, current year, and borrowing thing each year to use the 11 month window. The only thing would be to be careful not to lose points if you all buy at the same time as the points can only be banked for one year. There is a lot to think about in doing this and you are wise to be asking questions now rather than later. You should also look at the resale market if you haven't since the price is so much lower than direct. You would lose the ability to trade out with that option however which may be important or not to some of you. Good luck and I hope it all works out so that you can have many happy family trips and memories.

 

[dianeschlicht]

I would recommend each family buys 100 points . So the total would be 300 points every year of combined together or each family can bank and borrow to get 300 points every three years.

When I purchased last year via resale, I wanted to put my children (two are over 18) on the contract, but it was suggested to not to.

I agree with this tactic. You could each buy 100 points, and then list the others as associates on the contract so the points could be used by them. Of course, that would definitely require a good contract between the three families to make sure there aren't any "surprises" down the road. The other option is to just transfer points to each other when needed.

 

[merby]

My family owns 360 points, broken down as follows:

My wife and I - 110
My brother and his wife - 125
My parents - 125

It is separated into 3 contracts, but all under the same account so no transfers are necessary. This has worked out great since one of us has always been trying to bank extra and others have be using regularly. It gives some great flexibility as long as everyone understands what they have and what is available. If someone is trying to save up for a trip, they are able to bank extra points if someone else is using their points or borrowing from future years.

Suggestion: Create a spreadsheet that tracks the points for each group of people (preferably one that is somewhat automated so that people can make a simple adjustment to see where they stand). Also, pick out one person to be "in charge" of the points in the sense that they are aware of the deadlines and what points can and cannot be banked to remind everyone. That way there are no excuses if someone doesn't take care of their end. Be sure that you trust the other people to pay their portion of the dues as well.


We have had a very positive experience with this, though we may have just gotten lucky setting up a system at the beginning that worked. I could imagine that just winging it could cause incredible dissension among the group which could worsen your experience.

 

[NC2WDW]

Most definitely have separate contracts. Could you imagine how it would split when death occurs? Make this an investment for the children by separating them.

 

[jthelman]

Thanks for the responses, all good info. It seems unanimous that the best plan is probably separate contracts, and there aren't many (any?) drawbacks to that plan.

 

[crisi]

Drawbacks - harder to manage - you'll need to understanding linking, banking and borrowing even better than the average DVCer.

More advantages - if one of you is on the contract and declares bankruptcy, the whole set of you could loose ownership. If - over the DECADES of potential ownership - you decide that your sister's husband drives you batty or that the man your mother remarried after your dad died is barely worth speaking to, you can pull back to the points YOU own and stop dealing with everyone else (for vacations and ownership - you might still want to deal with them as family )

 

[Dean]

Thanks for the responses, all good info. It seems unanimous that the best plan is probably separate contracts, and there aren't many (any?) drawbacks to that plan.

Management and higher costs to get started. For resale you're talking maybe $5 a point more to buy in plus 2 closing costs. To avoid some of those issues, another option would be to have a written agreement where one is the owner and others "rent" the points from them when needed. Saves around $2500 in this situation.

 

[Twende]

I am living a horror story right now.

My parents loved Disney and my family took them and went with them on Disney trips up to 4 times a year. It just made sense to buy into DVC so my dad did. Out of the kindness of his heart he included two of my three brothers on the deed along with his name and my name.

All went well as long as my Dad was alive. He passed away this year right after our wonderful trip. My brothers do not like Disney and immediately tried to sell the whole thing. The first thing they did was cancel all our future reservations. What a mess that made!

After months of fighting and having points lost into a account that had to be used by the end of our use year, they have verbally agreed to sell the remaining 2/3 points to me. I am hoping they sign the legal papers this week. I really want this nightmare of them and Disney to end.

Be very careful who you put on the deed. My dad never ever thought that his sons would act the way they have. Dad wanted this for his children. grandchildren, and great grandchildren to enjoy. You just never know what greed will do to people you think you know!

 

[missypaws]

We are doing with another family but they want to pay for their vacation. If they need 100 points, what is a fair asking price per point?

 

[crisi]

We are doing with another family but they want to pay for their vacation. If they need 100 points, what is a fair asking price per point?

One time "rental" to friends?

Some people don't charge at all and figure that sometime in the future a cabin will be lent in return (or just do it because of friends). Some people charge dues. Some people figure out their "cost" per point (the normal formula is (# of pointsx point cost/number of years) +dues). Some charge $10 or $12 a point - the "going rate." There isn't a right answer.

 

[Dean]

We are doing with another family but they want to pay for their vacation. If they need 100 points, what is a fair asking price per point?

There are many variables. I'm not totally sure your question. If you are "buying together" but they will "rent" from you, it really depends. Since they own nothing and have no enforceable obligations, they truly would just be renters. IF you want to set up an agreement on recurring rentals, there are a lot of details to work out and it depends on what resort and the buy in price. In general I'd say $9-10 a point is about as low as one can go and not be subsidizing their vacations if one considers the time value of the buy in costs. One would need the option of adjusting over time based on increasing dues and other expenses.

I believe that such a partnership (either legally owning together or one owning and the other renting routinely) is a very risky situation both financially and to any friendship. Get it all down in writing with every variable one can think of including death, bankruptcy, non payment, change of heart, lack of availability, cancelations, selling and a hundred more. Have everyone read and sign it.