What happens to DVC if you pass away?

[Huskerpaul]

You might want to reconsider buying a timeshare given your current health situation.

 

[cedricandsophie]

We have a trust and our points are part of the trust for the use of our disabled adult daughter. The trust Would be responsible for paying dues and my daughters guardians will be responsible for making reservations for her use. If we are still alive when they expire in 20 years we will have to decide to renew them if that is an option.

 

[kayaddict]

I highly recommend getting a trust in place and transferring your assets to that trust. Probate is a very long and expensive process and can be completely avoided by having a trust in place and it being "funded" with your assets. When we bought our DVC contracts we bought them in the trust's name. The is not uncommon and your broker will be able to help you with that.

I also recommend using an attorney to form the trust. The attorney will know the laws in your state for trusts, and they do vary. Also, when we formed ours the attorney asked a lot of questions we never would have considered ourselves. It is a bit of a headache to get it done, but your family will very much appreciate it.

edit: I just read that this user is not a US resident so this post doesn't apply but I will leave it up as I do think it's important information.

 

[we"reofftoneverland]

Unless you’re certain they’re going to want to keep and pay for it, I wouldn’t burden them with having to unload it. That’s hard enough to do when you know what you’re doing.

Look up “Swedish Death Cleaning.” It’s the practice of getting rid of most everything so your survivors don’t have a big job once you’ve passed. It’s common in Sweden.

That Swedish death cleaning stuff is so anti human.

 

[gmi3804]

That Swedish death cleaning stuff is so anti human.

Why?

We recently downsized to a 3BR condo from a 5,500 square foot home, and getting rid of sh..tuff feels great. And we're not finished yet. There'll be way less to deal with when we're gone.

 

[we"reofftoneverland]

Why?

We recently downsized to a 3BR condo from a 5,500 square foot home, and getting rid of sh..tuff feels great. And we're not finished yet. There'll be way less to deal with when we're gone.

I am all for getting rid of stuff you don’t want, but there can be real joy in going through the things of someone you loved. If you get rid of everything, you are taking that away from the next generation. Sure it is a burden. But pick up a load. That’s what makes life worth living. I think we should teach that to the next generation. Their lives are already too easy as far as I’m concerned. One of my fondest memories as a child (10 year old) was going through my dead grandmother’s things with my mother and her sister. Sure, they complained the entire time, but they laughed a lot too. And spilled a few tears as well. My grandmother was meticulous and anything of value was labeled in drawers for the receiver. But the rest of the stuff was magical: political pins from other eras, perfume samples (so many to smell lol), the purses with the occasional odd or end, embroidered handkerchiefs, scarves, prayer cards, books, vacation knickknacks. So fun. Unfortunately they wouldn’t let me keep as much as I wanted, but I did get a few scarves and handkerchiefs! The rest went to donation. She could have donated it herself Swedish style before she died, but I’m glad she didn’t.

 

[Nursemanit]

I kept mine out of the trust - If you put it in a trust your relatives can not refuse it.

 

[Best Aunt]

I kept mine out of the trust - If you put it in a trust your relatives can not refuse it.

If you put it in a trust and your relatives don't want it, why couldn't the trustee sell it?

 

[crvetter]

I kept mine out of the trust - If you put it in a trust your relatives can not refuse it.

The trust can’t refuse it (since it already is in the trust) but the relatives can choose not to transfer out of the trust to them. So you can literally just abandon it in the trust, turn to Disney which I’m sure they would take for free, or have the trustee to sell it.

I had my lawyer handle all of this and this was the advice she gave me. The stuff in the trust is handed out to your relatives they shouldn’t keep assets in the trust after passing away.

 

[Nursemanit]

The trust can’t refuse it (since it already is in the trust) but the relatives can choose not to transfer out of the trust to them. So you can literally just abandon it in the trust, turn to Disney which I’m sure they would take for free, or have the trustee to sell it.

I had my lawyer handle all of this and this was the advice she gave me. The stuff in the trust is handed out to your relatives they shouldn’t keep assets in the trust after passing away.

You are assuming it will have a value. With restrictions, in 20 - 30 years it could end up like many timeshares where it is a net negative on the trust and would need to be cashed out. I doubt it but it is possible and since my family would not want it it is better left out. My attorney does not recommend any timeshare be placed in trust.

 

[crvetter]

You are assuming it will have a value. With restrictions, in 20 - 30 years it could end up like many timeshares where it is a net negative on the trust and would need to be cashed out. I doubt it but it is possible and since my family would not want it it is better left out. My attorney does not recommend any timeshare be placed in trust.

No not at all. I said it can just be abandoned in the trust after all other assets have been transferred out.

 

[Nursemanit]

No not at all. I said it can just be abandoned in the trust after all other assets have been transferred out.

LOL you can not distribute out a trust and ignore liabilities. That is the one thing that can make the trustees liable.

 

[crvetter]

LOL you can not distribute out a trust and ignore liabilities. That is the one thing that can make the trustees liable.

Trust Backup, Another - But it’s okay, we got differing opinions from our lawyers I guess. I’ll stick with what mine said and the OP isn’t in the US anyways. So their country’s laws would matter anyways.

You are right in the sense if there is a loan on the property and the property is worth 0 so it is negative equity. Then the trustee has to satisfy the loan before distributing from the trust. But that isn’t what I’ve been referring to nor what the OP asked. Property can be abandoned if it has clear title pretty easily.

And just because you left it outside the trust doesn’t mean the creditor (if money was owed) doesn’t mean they can’t go after the trust. They can but it often doesn’t happen.

Edit another: Rusing Assets

Other Reasons to Disclaim Inherited Assets​

In addition to reducing federal estate and income taxes, there are a few more reasons why a beneficiary may want to disclaim inherited assets:

• To avoid receiving undesirable real property, such as an eroding beachfront property or property with high real estate taxes that may take a long time to sell

Also DVC timeshares are not in perpetuity like some of the others that cease to exist at death. It still exists because it is a true deed on a land leased property that ceases at the end of the land lease. So inside or outside a trust, it exists one case the estate has to pay for it and abandon it the other the trust.

 

[fitnessmouse]

stumbeling back upon this thread and am in somewhat similar situation. (non US owner with life threatening disease)
except i have a grandfathered resale contract with all benefits, solely in my name.
happy it ends 2042 so no selling or dealing with international taxes and irs and all that
i just want my family to use the points for fun vacations. dues payments are not an issue.

i need to add names to the contract, Dh doesn't care thats why we purchased with me as sole owner, but now we may just add him to the deed and he needs to learn how to work the system.
i would have liked to add both of my children but DD will turn 18 at end september, and i just don't know if i can wait that long. (they can keep it out of marital asset so it stays in their name only)

we still have sets of Non expire 10 day hoppers and 10 waterparks, in MDE valid until 2099, so they can make memories and they can supplement with AH or MNSSHP or whatever.

 

[ellataylor]

Many thanks for all your input, it's given me much to think about and consider.

Does anyone know how many names can be on the deeds. Could I have all 4 of my adult children on the deeds (and I manage it until the time comes)?

 

[Robbie Cottam]

You are assuming it will have a value. With restrictions, in 20 - 30 years it could end up like many timeshares where it is a net negative on the trust and would need to be cashed out. I doubt it but it is possible and since my family would not want it it is better left out. My attorney does not recommend any timeshare be placed in trust.

interesting,
You can have a separate trust for each time share .... DVC trust 1, DVC trust 2, etc.. your survivors, can then pick and chose what they want to do.... abandon the the underwater trust(s) keep the ones they want...

 

[Nursemanit]

interesting,
You can have a separate trust for each time share .... DVC trust 1, DVC trust 2, etc.. your survivors, can then pick and chose what they want to do.... abandon the the underwater trust(s) keep the ones they want...

Or just leave it out of the trust - and save the fees and paperwork.

 

[Robbie Cottam]

Or just leave it out of the trust - and save the fees and paperwork.

what ever makes you happy
I prefer being judgement proof as well as having my affairs in order....

 

[Nursemanit]

There is no risk of judgment - you trust has the clean assets - you just don’t have the timeshares in it and your dependents can refuse the timeshare inheritance

 

[Robbie Cottam]

There is no risk of judgment - you trust has the clean assets - you just don’t have the timeshares in it and your dependents can refuse the timeshare inheritance

in our litigious society there is alway a risk of Judgement....
Do you drive a car? Go out to eat and have a drink?
You do, you have exposure and liability....
I'm referring to someone suing because you have assets.
The more assets you place in trust, the harder they are to attach a judgement too...
Makes you less of an attractive defendant

But like I said ,

what ever makes you happy