Transfering Membership to Kids

[Greysword]

I had a thought and wanted to get the opinion of our experts (that would be everyone on this board ).

Can we buy small contracts in a child's name if my wife and I are also listed on it? I think it would be great once we start having kids for them to have their own piece of the magic.

Secondly, if we were to buy two 50 point add on contracts before we have children, could we then transfer them to the kid's name once born?

Thanks!

 

[goofyforlife]

I believe I read somewhere that since DVC points are actually a recorded deed that children have to be of legal contract age (18) before they can "own" or co-own points.

So that would rule out pre/in-utero contracts.... but I believe you can purchase smaller contracts in your own name and transfer to them or add their name when they get older.....


(my contract won't expire until when I am in my 80's....so we looked at the purchase as something my daughter (now 11) or her children will eventually use/share/inherit anyway.)

 

[tjkraz]

Secondly, if we were to buy two 50 point add on contracts before we have children, could we then transfer them to the kid's name once born?

As goofyforlife said, there is an age requirement. But once they reach that age, there would be nothing keeping you from making the transfer. Plan on a few hundred dollars to file the appropriate documents.

 

[drusba]

This is usually something that before doing you should talk to a lawyer and accountant. For example, there are ways to set up trusts where the trustee, usually you, would have title, but the child would be the benficial owner and ultimately member. Moreover, there are many things to consider before putting title in a child's name, partly or wholly, like what is the impact on qualifying for financial aid for college, or if the child becomes an adult and has serious financial difficulties that joint interest with you may be subject to seizure by his creditors.

 

[DrTomorrow]

And I know this is veering a little off the legal issues, but you'd also need to think about your child turning 18 and having access to $5,000 - 10,000 worth of assets. We all like to think our children will turn out well (and of course, all DISer children do!) but there can be problems. For many years, a co-worker put a whole bunch of $$$ in her son's name for some tax benefits - she'd planned on him using it for college. Well, when her son turned 18, he cashed it out, bought a motorcycle and moved out - no school. Yes, it can be done in such a way, but something to think about none-the-less.

 

[DEff]

From my point of view, assets in the parents name are better than assets in the child's name. I have no idea how this would factor into getting financial aid for school, but I know they look at the kid's stuff before the parents. Past that, while my rather well-adjusted, conservative 10 year old seems trustworthy now, how the heck will she be in a few years? The last thing I would want to do is give my kid that kind of a piece of the magic! Disney dollars. That's the ticket! ;-)

Donna

 

[DizneyNutz]

As a fellow DisBoard parent, this is an EXCELLENT point! We have one DD that is graduating college in May, one graduating HS next year---with our salary (and it's not like we are filthy rich) she couldn't receive financial aide and YES---income, assets, everything that the child and the parents own is taken in account! GOOD ADVICE!

 

[ColoradoBelle1]

I knew our daughter wouldn't qualify for scholarships based on our income anyway....and when she was born I put 5000 into a mutual fund that grew and grew to over 200,000 by the time she was ready for college. In fact, it grew so well that we left it alone and paid for college out of pocket...and then watched the 2001 crash eat up 30% of it.
Yes, it counted against her for scholarship aid, but again, we made enough that I doubt it mattered.
Yes, she could have taken it and spent it for anything...tho kids mostly believe what you tell them. She is 23 and still asks my permission before thinking of using that money.

The good news was that she had spent time and worked in California (as a dancer) for years before college and had decided she wanted to go to college there. Luckily , because she could prove she could support herself (by virtue of that college fund), we only had to pay one year's worth of out of state tuition.

I'm buying into DVC in joint ownership with my daughter becasue of right of survivorship reasons. She can't sell it without my assent, nor I hers. It saves the transfer fees and it allows either of us to make ressies etc. I guess we would both be eligible for annual passes. If she were 18, I seriously doubt I would list a timeshare on any college application for aid . It just wouldn't occur to me to think of it that way.

I like the 'in-utero ownership....LOL!

 

[Tramp68]

If your contract for that group of points is paid in full, you can quit-claim the deed to anyone you want for about $75 at a local attorney. Disney will do it for you for $150.
You can have up to 6 legal age names on any deed, so multiple people can co-own any piece of DVC.
Since Disney won't let you split a deed it certainly makes sense to purchase add-on in smaller pieces so you can split them among your chilrden or sell them off, etc. Anyone buying new today more than 270 points would do well to buy 150 initially and then add on 120 to get the 100 point incentive, etc.

 

[DrTomorrow]

If your contract for that group of points is paid in full, you can quit-claim the deed to anyone you want for about $75 at a local attorney. Disney will do it for you for $150.
You can have up to 6 legal age names on any deed, so multiple people can co-own any piece of DVC.
Since Disney won't let you split a deed it certainly makes sense to purchase add-on in smaller pieces so you can split them among your chilrden or sell them off, etc. Anyone buying new today more than 270 points would do well to buy 150 initially and then add on 120 to get the 100 point incentive, etc.

With a quit-claim, are there any ROFR issues?

 

[drusba]

ROFR applies to the "sale" of your interest; it is inapplicable to a "gift" of your interest; the type of deed used for either (quitclaim or warranty) does not matter to the whether ROFR applies.

 

[Greysword]

LOL! I just thought of something from reading your responses (Thank you, BTW. I appreciate the solid conversation!).

If I planned on having $20,000 for a child's college tuition, maybe buying a DVC ownership would be the way to go!! We could use the points for vacations during that time, and get some benefit from the funds, then when they are off to college (or whatever), I would sign the deed over to them and let them cash it in if that is what they want/need.

Thoughts?