What are your thoughts or have you been through this??

[SheilaHeartsDisney]

Background …..Currently my mom, three sisters, and myself are in the DVC deed. My parents purchased DVC in 1994 and the contract has been paid off for years. My mom currently pay the annual dues(dad is deceased). My sisters and I have never had to pay a cent to use the points.

So here’s the question we were talking about.. when my mom passes away my two sister want to sell the contract and my other sister and myself want to keep the contract.

My two sisters want us to pay them the portion they would receive if we were to sell the contract. Or buy them out.

But I’m thinking why would we pay them for something they never paid into. Also my 1 sister and I would take over paying the dues.

I don’t want to cause any tension and it’s good to have this conversation before my mom passes(which hopefully won’t be for a long time )

But what do you think?? Am I wrong to think that way??

I think their argument is it’s real estate just like a house would be so they are entitled to 1/4 the value.

Anyone been through this??

 

[jalapeno_pretzel]

If your mom's will says to divide up all assets equally among the siblings, then yes absolutely, you would indeed need to buy out the portion they inherit which they would like to sell. I'm not sure why it would seem otherwise .. I mean none of you paid into any of your parents assets, right?

 

[Brian Noble]

My two sisters want us to pay them the portion they would receive if we were to sell the contract. Or buy them out.

Assuming your Mother's will equally transfers assets of the estates to all four of you, this seems like the right answer.

But I’m thinking why would we pay them for something they never paid into. Also my 1 sister and I would take over paying the dues.

Why should the two of you get it all when you didn't pay anything into it either? After all, as you wrote above, none of you paid so much as one cent.

I think there argument is it’s real estate just like a house would be so they are entitled to 1/4 the value.

Assets are assets. If they are to be divided equally, then that's what should happen. Of course, if your Mother's estate has other resources, it is possible you can divide all of those resources in a way that you and your "Disney" sister get the DVC contract, but your "non-Disney" sisters get something else of equal value.

 

[jalapeno_pretzel]

Also my 1 sister and I would take over paying the dues.

If your other 2 sisters sell out their portion of the asset, wouldn't that kind of be understood? They no longer own it, they're no longer going to pay the dues, and there is no reason that factors into anything.

 

[lilsonicfan]

I agree that it should be split in the way suggested by the sisters who want out, although I will say that if your parents bought in 1994, it must be at one of the 2042 results. The agreement should be that the value of the asset is determined at the time of your mom's passing, and not before - as it is entirely possibly the asset won't be worth a heck of a lot at that point.

You'll pay the dues moving forward, but you'll also get the benefit of the points, i.e. the benefit of the asset itself. They are entitled to what they would have gotten if the contract sold, i.e. 1/4 of the price for the points themselves.

 

[_auroraborealis_]

It is a real estate asset and this is how it should be handled. It is either sold and the proceeds divided, or it is bought out by those who wish to keep it at fair market value. Those who keep it retain its use and expenses.

 

[Brian Noble]

Why should the two of you get it all when you didn't pay anything into it either? After all, as you wrote above, none of you paid so much as one cent.

This is still true, even if you and your "Disney" sister start paying for Dues on (and using) the annual points going forward. The purchase price/value of the contract is independent of its annual usage/dues costs.

 

[Nursemanit]

I will give a different answer - talk to your mom and she may choose to leave it to the two who want it and compensate the others in some other way. She might even be glad to transfer the contracts now and the yearly expenses.

 

[SheilaHeartsDisney]

Thank you all for your responses. After reading and most seem to agree about giving my 2 other sisters the fair market value. I just needed to “talk it out” before the time actually comes. You guys are the best!!

Yea, I have a 2042 contract and then my parents added the extra 15 year contract into it for OKW. So I will have it until I am in my 70’s.

We of course will wait until the time comes
To figure out the market value which may be not as much at that point.

Thanks again!!

 

[Narcoossee11]

I would start making plans now. Get everything settled before your mother passes.
The sisters that are using the timeshare should be paying the dues. Get in the habit of what the membership cost to ensure that the parties can and are willing to pay for up keep.

 

[Anthony1971]

You will have no choice but to decide on a value at that time. A lawyer (the one chosen to execute the will) will draw up a contract for all to sign and will need a copy of the check or funds transfer the lawyer will further file the new deed. I would strongly suggest if what you say is the case to have the names removed and the will modified to include who gets the DVC and X amount to? to compensate for this rest to be divided equal. If you want to save a lot of $ take care of the transfer now and buy your sisters out and take care of the transfer sooner. This will require the new owners paying the dues unless you all agree on something else. Needless to say having a lawyer take do the above is not cheap. We went through this last year where there was a house which my wife sold to her brothers who were still living there for very cheap of which the lawyer questioned the price..... The other way to avoid is to have your mother create a trust which the DVC and any real property will in fact be transfred as per the trust but again this is not cheap but will save the final lawyers costs. A word of caution one never knows what care will cost and the only real way to protect anything is a trust or transfer of assets to a trusted family memeber that will respect any wishes but there is still a look back in either case if care costs outweigh assets. My Parents had a trust my Wife's did not the trust made everything a lot easier as all was done prior however as I mentioned the costs are very high.

 

[Sandisw]

The decision is really your mom's. She has to decide how she wants her assets to be distributed. If she wants everything to be given in an equal way, then it's value, whatever it is, has to be accounted for at the time of her passing.

If not, then she can account for it as part of her estate in anyway she can. I will say that we have set our estate up in such that we will be having 10 years of MF's set aside for the contracts. During that 10 years, the only way to sell is if all three want to sell.

After 10 years, not all of them want it, then they will make an agreement to relieve the other sibling(s) from MFs but nothing will be paid to them as they will legally remain an owner.

Basically, its value is in its use and whomever wants to pay the MFs and use gets to keep them. If the contracts are ever sold, since all three will remain owners (unless they decide they want off), then the proceeds get split...but basically, not until it is something none of them want.

Good luck!

 

[Jillpie]

This is so easy. Ask your Mom what her wishes are. She makes this decision. You're lucky that she is still alive to have this conversation with you and your sisters, in a calm manner. You don't have to fret anymore, just ask her.

 

[bumbershoot]

I don’t want to cause any tension and it’s good to have this conversation before my mom passes(which hopefully won’t be for a long time )

Talk to her now.

The agreement should be that the value of the asset is determined at the time of your mom's passing, and not before - as it is entirely possibly the asset won't be worth a heck of a lot at that point.

Agreed.


If I were in your shoes...

Sisters who want the timeshare pay to have sisters who do NOT want the timeshare taken off now. If they don't want it, why are they on it? Take care of it now. I found LT Transfers to be good to put me on and take my then-about-to-be ex off of the deed 5 years ago. When doing a gratuitous family transfer you can have vacations booked (unlike when flat out selling a deed).

Sisters whose names are on the deed, when the sad time comes, see what the market is at that time, and pay the other sisters their share of what it would have sold for.

 

[we"reofftoneverland]

Legally yes it is like a real estate asset and if it is left to all, you have to pay them out if you want to keep it. Is there anything else you could “trade” them for? Or get your mom to leave them? Talk to mom. We have thought about this for our kids and I suspect they don’t all want dvc contracts, so we will leave them different things at this level. We also have different contracts— certain kids will want certain resorts lol. We will handle that before we die (we are still pretty young— sounds like about your age- so we have time) so that they do not duke it out.

 

[jo-jo]

No legal anything here, but I have a question. Mom has contract, at her death, it's worth 10 grand. Right now there are five names on the deed. So you'll need to pay inheritance tax on 2 grand. Wouldn't be better to have the deed transferred now?

But yes the non disney sisters should receive something. It could lead to hard feelings if they are just cut out.

 

[greeneyedchick]

This is still true, even if you and your "Disney" sister start paying for Dues on (and using) the annual points going forward. The purchase price/value of the contract is independent of its annual usage/dues costs.

Also keep in mind that when you and your sister eventually sell it, you would be profiting off of the asset.

 

[disneydreamer1980]

I’m in a similar situation. My parents are DVC members with multiple contracts. They first joined when it was first offered so we were raised as “DVC kids”. DH and I are also DVC members but my sister has zero interest in trips to Disney, despite having been raised going there yearly. They are setting it up so my sister and I will each split their contracts. She’ll no doubt sell hers. Your parents seem to have the one contract so I think it’s right you’d buy them out or sell the contract, take your part of the money snd buy a new one. Speak to your mom now, she may say since you and your Disney sister are interested she’d leave the contract to you and leave something of similar value to the other sisters.

 

[CarolynFH]

Also keep in mind that when you and your sister eventually sell it, you would be profiting off of the asset.

Assuming it’s still worth something at that time. Their ownership goes back to 1994, so probably OKW, and resale prices are dropping there already.

 

[Blizzyblizz]

Hate to say it, but yes you're thinking about it wrong. Assuming your mom's will divides the DVC ownership evenly among the four of you, then it's reasonable for them to say they want out....and that means you either need to buy them out or sell the whole thing.

If you can't afford to buy them out, then you should just sell the whole thing and can use your share of the money to buy a smaller contract (and bank/borrow points as needed to get the trips you want).

The one thing worth noting....if you are going to buy them out, then they should only get the same amount of cash they would have received if you all sold together. That means the *net* proceeds after taking out closing costs, broker fees, etc. So say hypothetically the points for your resort are typically selling for $120/pt but if you sold you would only receive $100/pt after closing costs, broker fees, etc.....in that case, then to buy each sister out you should only have to pay $25/pt for their share, not $30/pt.