Splitting DVC With Family

[wonka27]

I'm sure there are those out there that split a DVC contract with other family members. If you do, how do you handle it. My wife and I and her parents are interested, but I'm trying to figure out what the best way to handle it is.

For example, do you take points on alternating years, or do you all go together every year if you can?

Also, have any provisions been made if there comes a time for someone in the "group" to no longer use the club...death or lack of interest. I was thinking of being able to buy back her parent's interest when they no longer can make the trip.

Let me know what you think if you have a similar situation with friends and family.

 

[Chuck S]

Working out the point usage is, of course, up to the parties involved. Either way you suggest is fine, as long as there is mutual agreement.

In most states, if all parties are listed on the deed as joint tenants, the survivors in the case of death, automatically will inherit the property and joint tenancy will supersede a will if the will contradicts the tenancy. The deed would simply be redrawn, listing the survivor as joint tenants, and the estate executor/executrix signing of on behalf of the estate. You will still have to get a ROFR refusal/waiver from DVC, but in that type of situation it is pretty automatic.

Likewise, if some owners of record no longer wish to own DVC, they can sign off and re-record the deed with a ROFR waiver...but to facilitate this process it is easier if it is "gifted" rather than $$ exchanging hands.

 

[Granny]

I'm sure there are those out there that split a DVC contract with other family members. If you do, how do you handle it. My wife and I and her parents are interested, but I'm trying to figure out what the best way to handle it is.

I think really the best way to handle it would be for each of you to buy separate contracts at the same resort and UY. Then you have the option of each group handling their own reservations, or transferring to the other (once per UY) to combine points for a group reservation. Provides more flexibility and avoids potential "misunderstandings" that almost inevitably will occur when sharing anything.

 

[dis-happy]

I think really the best way to handle it would be for each of you to buy separate contracts at the same resort and UY. Then you have the option of each group handling their own reservations, or transferring to the other (once per UY) to combine points for a group reservation. Provides more flexibility and avoids potential "misunderstandings" that almost inevitably will occur when sharing anything.

ITA!!!

 

[JodyTG]

This is going to sound horrible but I'm going to put it out there anyway. If you purchase DVC with your wife's parents (all of your names on the contract) there could be issues when someone dies. I know that no one likes to think about this but it almost always raises problems.

When my grandmother died it seemed like all of her kids (my FAMILY) were snatching and grabbing anything and everything that they could. People that I've known and loved all of my life turned into monsters that were worried that they wouldn't get their part. My grandmother lived with me and my daughter for the last 5 years of her life, and they were even trying to take MY PERSONAL stuff. Although everyone wasn't involved in this fiasco, the three bad apples made life miserable for everyone. She's been gone almost five years now, and two of those people are still complaining that they missed out on "something".

So, if your wife has any brother, sisters, nieces, or nephews you might want to rethink buying one contract between all of you. It will save headache, and heartache, in the future.

 

[Anthony1971]

Although this can work.....
I would say it may be problems in the long run.
Maybe you could pay for the contract and the parents can pay for the Maint. for as long as they go or a largeer part of it......
Or just give you a gift and you can give them a gift by taking them every year they are willing to go and you pay everything after thier contribution to the initial cost.

 

[wonka27]

I think really the best way to handle it would be for each of you to buy separate contracts at the same resort and UY. Then you have the option of each group handling their own reservations, or transferring to the other (once per UY) to combine points for a group reservation. Provides more flexibility and avoids potential "misunderstandings" that almost inevitably will occur when sharing anything.

Granny, I would tend to agree with you, however, I was thinking of something in the 100 - 150 point range to start with. Cutting that in half seems to be a tough find (especially if looking for two separate contracts w/same use year). Ideally, I'd want to be right around 130, as that would get us a week in a studio every year at SSR or OKW...but I'd rather buy into SSR for the extra years down the road.

 

[Granny]

Granny, I would tend to agree with you, however, I was thinking of something in the 100 - 150 point range to start with. Cutting that in half seems to be a tough find (especially if looking for two separate contracts w/same use year). Ideally, I'd want to be right around 130, as that would get us a week in a studio every year at SSR or OKW...but I'd rather buy into SSR for the extra years down the road.

Yes, I was wondering what size contract when I was typing my response. If only one contract, I think Chuck's suggestion makes a lot of sense.

As to how to make it work? As weird as it might seem with relatives, I'd definitely get something written that everyone agrees on. Not a contract, just a set of expectations. Some awkwardness now might save years of potential issues.

One of the things that might seem silly but would probably cause issues is that the annual reservations probably won't used exactly the amount of points on the contract. So who "owns" the use of the leftover points? Or if someone has to borrow for a trip, do they "owe" points to the other users?

I'm sure that many people share DVC ownership with family without incident. Hopefully you'll get some tips from those that do.

 

[Mtnman44]

The additional costs associated with purchasing multiple small contracts would be MORE than worth it in my opinion. Lots of potential problems with sharing the deed with multiple familes....sooo many potential problems.

 

[iloveokw]

I would get my own points. What happens if someone messes up and doesn't use their allotted points. Banking/borrowing problems arise. Death, divorce, and loss of jobs or bad health could contribute to the above problems. My dad always said "don't work for family or friends" or loan them money. Just my two cents.

Kathy

 

[DisDaydreamer]

Sounds like a recipe for trouble to me.... I agree with Granny. Separate ownership.

 

[hematite153]

I suggest working out a system where one group owns the points with an understanding about usage.

If you want to own an effective 65 points but the easiest buy-in is 150 points and you have family who would use some of the points work out a form of rental agreement.

So, you own the contract but your family knows that for $800/year they have access to 80 points a year. Yes, you can get more from renting to strangers but it's nicer to rent to family. If you put it in writing with a commitment to sharing the contract for a fixed period of time (say 5 years) then you'd be able adjust later. They could pay annually Jan 1st to make maintenance payments or up front for the buy-in cost. Plus, you'd have a rate already worked out if one party wanted more points one year.

I think sharing a contract is doable but I wouldn't want to do it.

 

[crisi]

I, too, wouldn't share legal ownership with my family.

I might buy the points with a deal that my family can use the excess for "the cost of dues" - and let them know we anticipate excess in the first X years.

I have a wonderful family....but in-law issues in particular are tough. And we've had our share of misfortune of late as a family that hasn't brought out everyone's best.

 

[wonka27]

Thank you all for the input. A lot of good thoughts and suggestions here

 

[Dean]

I would agree it's a potential disaster but that's not to say it can't be workable. Look at your specifics then decide what is best for you and what chances you're willing to take. But for a smaller contract the $$ issue is not as much as it could be otherwise. I'd agree with having a written agreement as to how it will be used and what happens if someone doesn't want it anymore and if someone dies. Having all names on the deed will give everyone the perks. Just take a hard look at the group. Not just those on the deed but those others they are likely to want to bring along.

Personally for 100 pts or less I'd put all names on the deed but have one group as the actual owner who pays everything and have the other side pay as they play to "rent" the points" applicable. I'd have a written agreement that covers who can use which points when, how it works when all parties are going, how much say the other side has in who else may go or not on joint trips, how late cancellations are handled, etc. Even who gets the Master for a 2 BR. Spell out a buy out and what conditions will trigger that event.

Let us know what happens.

 

[wonka27]

Family dynamics are very important here. Every family has its own set of circumstances.

In this case, my MIL and FIL bend over backward to make both of their "girls" (one being my wife of course) happy. I'm sure if we shared a contract, we would be able to come up with a usage and payment solution that MIL and FIL would be agreeable and happy to accept.

My main concern is when they hit the end of the road with their Disney trips. I would want them to agree to either sell out their part to us or give it to us. I don't want BIL & SIL involved at the end, if they don't want to be part of it at the beginning (which they won't because of their own family dynamic). We actually have a good relationship with BIL & SIL...he even did our kitchen reno and we had zero conflicts. It is just another thing to worry about that could throw a curve ball on a good situation down the road.

Maybe us holding the contract and working out a way for MIL & FIL to pay as they go would be the best situation. That way, my wife and I have our hands on it, but we can work out what kind of usage they would get out of it for what price. It would be much cheaper for them...as they may not feel the full cost benefits from owning for a lifetime, however, we would be able to provide them a very attractive offer for usage that would be a big savings over a typical trip at a deluxe resort.

 

[tedhowe]

In my family, my parents were generous enough to purchase a DVC contract with enough points for them and each of their children (me and my 5 brothers and sisters) to have a small allotment of points. Their contract is for 320 points - 80 for them, and 40 for each child. It was purchased way back in '93 so OKW was the only option and with banking and borrowing, 120 points can be stretched to a decent length stay.

We divide up the points in two ways:

formally, each child had 40 points allotted to them initially. One brother was not at all interested in ever going to Disney, so with my parents' blessing, my other brother and I each bought him out of his interest - so two of us have 60 points, while the other 3 kids have 40. My parents always have their 80. Officially, within the membership, we have the same banking/borrowing rules as DVC as a whole.

For the first few years, there were a couple of group trips where multiple of the grown kids' families went together - always with my parents along as well. We had a big family reunion type trip - everyone except the older brother who didn't want to go at all. 17 of us, including the grandkids. Two grand villas for a week... that was heaven.

After that trip, most of my brothers and sisters were not as interested in going - their children were in high school and it has made travelling at off-peak times very hard.

Since then, we've become very informal. There is rarely conflict between the use of points, and we've found banking and borrowing work to smooth out those situations anyway.

The only ones who really go now, are my retired parents, and my family and my brother's family - with the "second generation" of grand kids. The first group fo grand kids for my parents are currently aged between 16 and 26. The second group of 5 grand kids are now between 5 and -5 months (my SIL is expecting)

Long story (not so short) is to be flexible and realistic - and take advantage of the banking/borrowing system - it makes sharing contracts much easier.

 

[DVCAmy]

A few years ago we decided to buy points and my sister's family and our mom and dad wanted to also. We first considered doing it all together since I actually "manage" all of the points (banking/borrowing/vacation plans, etc) but decided against it because it would be such a large contract. SO my sister's family bought 150 points and mom and dad and I bought a 200 point contract together. We did purchase it together but my family paid for 150 points and mom and dad paid for 50 points and we pay the maintenance fees based on that. However when it came down to it in the end my parents decided they wanted me and my husband to be on the deed and not them. So although they have 50 points they are officially mine so there is no concern over death, deciding not to go, etc. I made sure they understood that mean they could not sell them and that if something were to happen the points were all mine and they wanted it that way. We are a close family and my sister's know that was the deal. 1 sister bought her own points I suspect the other will also in a few years. This works for us but may not work for everyone.

Good luck however you work it out.

 

[ilovefh]

I think really the best way to handle it would be for each of you to buy separate contracts at the same resort and UY. Then you have the option of each group handling their own reservations, or transferring to the other (once per UY) to combine points for a group reservation.

I agree that two contracts is definately a good way to go. However there is a downside. I purchased three years ago and my parents just purchased. (both at SSR) We almost always go on vacation together and normally share accomodations. The hard part is we go more than once a year so the one transfer per UY rule is tough on us. We try to have them pay for one vacation and us pay for one, but in Nov we are going down for four nights in a one bedroom and in February we are going down for 9 nights in a two bedroom so it isn't that easy to split. I do sometimes wish we had purchased one contract, and if we had purchased at the same time we probably would have. For us Disney is a family trip that we've done every year since I was three. It just isn't the same going without my parents. (plus we let my sister and her boyfriend come along for free!)

 

[hematite153]

Family dynamics are very important here. Every family has its own set of circumstances.

Given the dynamics you describe, sharing a contract with your MIL & FIL would probably work. Dean is correct that having all names on the contract would be useful in terms of DVC perks.

Why not just write out a buy-out plan and make it clear that if anything happens you have the right to follow the preset buy-out plan rather than having the DVC contract become part of an estate.