What happens to a membership when the owner dies?

[Jennasis]

The title says it all. I am assuming that it is treated like any other real estate the deceased owns. Can it be "left" to someone in their will? Would it automatically go to the living next of kin or spouse if those people are not named on the title?

My husband's uncle passed away very unexpectedly...he was the one who convinced DH and I that DVC was doable for us. He let us use his points for a stay back in 2012, and we were hooked on the villas and bought in ourselves in 2014. Our shared love of Disney is something we'll always treasure. His death has us gobsmacked for a variety of reasons, but it did make me wonder what would happen to our DVC membership if BOTH DH and I died. We're both on the deed. Could we leave it in our will to, say, one of my sisters? How would they go about assuming the ownership? Would it have to be offered to Disney first, like ROFR?

I have no idea what is happening with our uncle's DVC. Don't even know if there is a will at all. He has a wife, technically, but they've been estranged for 20 years...just never got divorced, and she is definitely not on the deed. Don't even live in the same state. He had a long term girlfriend whom he enjoyed going to Disney with, so I'm hoping he left it to her and that it's allowable.

Sorry for the somber topic.

 

[Dean]

It's treated like any other real estate asset. It can be left to someone and they can disclaim it if they want but the estate would still own it and couldn't be settled until the timeshare were disposed of in some way. It'd most likely have to go through FL probate as well depending on specifics of title. If not specifically left to anyone, it'd follow either the general tenants of the will or the laws of the state if no will. That usually means next of kin.

 

[wilkeliza]

Well if he never divorced his estranged wife she could come back after everything. Doesn't really matter that he had a long time partner either. I hope everything goes ok and your uncle had a will if not his estranged wife is still his default next of kin.

 

[jekjones1558]

The title says it all. I am assuming that it is treated like any other real estate the deceased owns. Can it be "left" to someone in their will? Would it automatically go to the living next of kin or spouse if those people are not named on the title?

My husband's uncle passed away very unexpectedly...he was the one who convinced DH and I that DVC was doable for us. He let us use his points for a stay back in 2012, and we were hooked on the villas and bought in ourselves in 2014. Our shared love of Disney is something we'll always treasure. His death has us gobsmacked for a variety of reasons, but it did make me wonder what would happen to our DVC membership if BOTH DH and I died. We're both on the deed. Could we leave it in our will to, say, one of my sisters? How would they go about assuming the ownership? Would it have to be offered to Disney first, like ROFR?

I have no idea what is happening with our uncle's DVC. Don't even know if there is a will at all. He has a wife, technically, but they've been estranged for 20 years...just never got divorced, and she is definitely not on the deed. Don't even live in the same state. He had a long term girlfriend whom he enjoyed going to Disney with, so I'm hoping he left it to her and that it's allowable.

Sorry for the somber topic.

We have wrestled with the question also. Florida, unfortunately, does not have Life Estate Deed, which would allow you to name on the deed to whom you want your DVC to pass when you are both gone. We discussed various options but in the end decided to just immediately add the name of an interested family member when one of us dies. If we both die at once then DVC will just have to go through Florida Probate.

 

[drusba]

If you and your husband purchased DVC together, you most likely have a deed that says the property is in your names as "husband and wife." In Florida, that means you both own it together and if one dies the other automatically gets it and it does not go through probate (but still has to be accounted for to determine if any estate taxes are owed -- usually unlikely unless the decedent was quite rich). If both of you die it will go to whomever the last one to die specifies in a will, and the failure to have a will would result in it going most likely to living children. Some set up trusts for the benefit of children after they die in which ownership of the property is placed. Others may add an adult child to the deed before passing to allow the child to get the property automatically upon their death -- what is actually done is the creation a new deed where the current owners transfer ownership to themselves and the adult child as joint tenants with rights of survivorship.

As to ROFR, any property that passes upon death or as a gift, is not actually subject to Disney's ROFR. However, it still needs to go through the ROFR process after both of you die so that Disney can issue a waiver of ROFR (which it automatically does), that is filed with the Orlando area comptroller. That is needed to assure no one later can question whether proper procedures were followed to eliminate the ROFR right.

Your husband's uncle's situation, if it is as you describe, is problematic. If he is still legally married, his former wife may have claim to everything he owns, not just the timeshare, and others who believe they should be entitled to anything, including anyone named in his will if he has one, would likely be wise to seek legal advice.

 

[CarolMN]

I am not a lawyer. That said, if someone dies without a will or a trust, his/her estate is distributed according to state laws via the probate process. State laws vary. IMO, it's best to consult a qualified attorney.

DVC properties in Florida are subject to Florida state laws, which may be (and probably are) different from the owner's state of residence. Some people put all of their real estate holdings in a trust to avoid the need to go through probate in multiple jurisdictions.


Jennasis - sorry for your loss. If your uncle did not have a Will or trust, the courts will appoint an executor. Sounds like his estate will at least be going through probate in Florida as well as the state in which he lived/died. Could be expensive. Lawyers will be likely be involved.

 

[TaraPA]

Jennasis, sorry for the unexpected loss of your uncle. I'm sure you will come up with something wonderful to honor his memoy on your next trip!

We were just discussing this, we need to get our wills done & this came up. I have 2 contracts, in my name only, that my spouse & children would not be interested in after I pass (at this point anyway). I plan to question the attorney when we draw up our wills how easy/difficult it is to leave them to a friend.

But now that I see you can add an adult child on the deed, I might just look into that. DS20 could be added, then he could sell them when I pass if he's not interested, I assume. Has anyone added an adult child to their deed, if so what is the procedure?

 

[Barbydoll8]

Very sorry for your loss. It depends on the state. I live in FL and have a will and have declared my DVC to be left to my niece. She will get it upon death but it will first go through FL probate. She can disclaim it if she wants and then it defaults to the estate.

 

[pmaurer74]

My aunt passed away two years ago and it took 18 months for the estate to settle because of a timeshare. Every person on the will (about 15 people) had to sign off saying they did not want the timeshare and it went back to the TS company. It did drag out the estate because TS company did not want it back.

 

[Dean]

My aunt passed away two years ago and it took 18 months for the estate to settle because of a timeshare. Every person on the will (about 15 people) had to sign off saying they did not want the timeshare and it went back to the TS company. It did drag out the estate because TS company did not want it back.

And if they hadn't taken it back, you'd have to rely on the courts to remove it from the estate before it could settle.

 

[VLee]

What if no dues are paid on a deceased person's DVC property.... would DVC just take it back then?

 

[DVC-Don]

Our DVC ownership is going into a trust and our daughter will be the trustee who will liquidate everything in the trust. Will avoid probate that (and lawyer fees) way.

 

[CarolynFH]

What if no dues are paid on a deceased person's DVC property.... would DVC just take it back then?

If dues are not paid for some period of time, yes, Disney will eventually foreclose - after making attempts to collect.