Title Question...

[kristenrice]

**Purely Hypothetical**

We have a Feb UY for our AKV and HHI contracts. My dad (who is almost 65) is toying with the idea of maybe buying a resale so that he and mom can spend a week (or 2) in February at WDW after he retires. They are both avid golfers and they love OKW.

After considering multiple scenarios, I think that an SSR resale might be in their best interest. First, if they were "stuck" staying there, it is right on a golf course. Second, the studios are better suited for a couple with the bed/sofa combo. Third, the buy in cost is similar to OKW, but the annual dues are currently less, which would be the greater concern once dad retires. They are in a financial position to buy outright so financing is not an issue.

Now, dad and mom both know that the contract will probably outlive them. They would more than likely pass the membership to DH and I. I'm wondering...*IF* dad and mom do decide to buy a resale, would it be simpler for them to add DH and I (or at least me) to the contract from the get-go? When they pass on, would that just default the contract to the survivors without having it become part of their estate? I have no problem being added to the deed because they would be paying outright for the contract so the only financial obligation left to me would be the MF's. We're not talking 1000's of points so the MF's would not be a burden to us.

Thanks!

 

[OKW Lover]

The better thing would be for your parents to specify in their will that the DVC membership goes to you on their passing. The advantage of this is that if you were to get into some kind of financial difficulty in the mean time (or are filing for student loans for children) this would be counted as your asset.

 

[Dean]

**Purely Hypothetical**

We have a Feb UY for our AKV and HHI contracts. My dad (who is almost 65) is toying with the idea of maybe buying a resale so that he and mom can spend a week (or 2) in February at WDW after he retires. They are both avid golfers and they love OKW.

After considering multiple scenarios, I think that an SSR resale might be in their best interest. First, if they were "stuck" staying there, it is right on a golf course. Second, the studios are better suited for a couple with the bed/sofa combo. Third, the buy in cost is similar to OKW, but the annual dues are currently less, which would be the greater concern once dad retires. They are in a financial position to buy outright so financing is not an issue.

Now, dad and mom both know that the contract will probably outlive them. They would more than likely pass the membership to DH and I. I'm wondering...*IF* dad and mom do decide to buy a resale, would it be simpler for them to add DH and I (or at least me) to the contract from the get-go? When they pass on, would that just default the contract to the survivors without having it become part of their estate? I have no problem being added to the deed because they would be paying outright for the contract so the only financial obligation left to me would be the MF's. We're not talking 1000's of points so the MF's would not be a burden to us.

Thanks!

They could do it either by the will or by how it's titled. The advantage to having it titled is that it's not in limbo upon their death but it does spread exposure both ways financially in the interim. Of course they could also add you as an associate. Personally for this situation and assuming there were no other heirs in question AND no financial concerns in either direction, I'd likely to it by titling it to all with right of survivorship as you've described the situation. I'd consult your attorney to be sure you have all things set up according to applicable state laws.

 

[rcchello]

There are many options and if he has enough money it may be advisable for him to discuss it with his estate lawyer.

 

[WilsonFlyer]

OK. That brings up a differnet question I've thought of in the past but never asked.

Let's suppose her parents pass on and do leave it to her and her husband.

Is it treated as a seperate contract since it was originally deeded seperately? In other words, would they have to transfer points to combine them or does Disney make some sort of concession in these cases and simply make the contract a sub of the inheriting party's existing master contract?

Does that make sense?

Just a hypothetical that I've always wondered about.

 

[OKW Lover]

OK. That brings up a differnet question I've thought of in the past but never asked.

Let's suppose her parents pass on and do leave it to her and her husband.

Is it treated as a seperate contract since it was originally deeded seperately? In other words, would they have to transfer points to combine them or does Disney make some sort of concession in these cases and simply make the contract a sub of the inheriting party's existing master contract?

Does that make sense?

Just a hypothetical that I've always wondered about.

That's a good question. I'd just point out that it would be a separate contract either way. If the parents buy it solely then their name is the only one on the contract. If they buy it jointly with the OP, then all four names will be on the contract. So, what ever the correct answer is, it doesn't affect the OP.

 

[Dean]

OK. That brings up a differnet question I've thought of in the past but never asked.

Let's suppose her parents pass on and do leave it to her and her husband.

Is it treated as a seperate contract since it was originally deeded seperately? In other words, would they have to transfer points to combine them or does Disney make some sort of concession in these cases and simply make the contract a sub of the inheriting party's existing master contract?

Does that make sense?

Just a hypothetical that I've always wondered about.

If it started separate, it would be separate. The question is whether there's any way to combine it later, and if so, how. I'm doubting that just taking off the name of the parent and making the title the same as other contracts will do so but one would need to ask. The more likely way would be to "sell it" then "buy it back" but there would need to be two closings and appropriate cost associated though one could do it themselves for around $100 total and likely wouldn't even have to record the first ROFR. As it relates to this issue I'm thinking it'd be better if their names weren't on the contract initially. This would be an interesting question to ask of member admin and I wonder if they said no on the first scenario but then realized you'd be willing to "sell then buy back", if they'd change their mind due to the increased work involved.

 

[CarolMN]

Anyone who is considering adding a non-spouse in this manner should really talk to an attorney before proceeding. In addition to exposing the asset to the other person's creditors, bankruptcy, etc., there could very well be tax consequences.

Adding a Joint Tenant may be considered a “gift” and thereby trigger unintended gift taxes. Depending on the total value of their estate, a married couple may forfeit valuable estate tax saving by excessive JTWROS ownership.

I am neither an attorney nor a CPA nor a Tax expert.

 

[kristenrice]

Thanks for all the replies. It is definitely something that we'd think long and hard about if the opportunity presents itself. A lot of good points were brought up and most are things I never would have considered. Thanks for the information...the DIS is the best.