What happens to DVC if you pass away?

[ellataylor]

I've recently been diagnosed with a life limiting illness. I had been looking into purchasing a DVC contract but I need to be fully aware of the implications when the inevitable happens. Will my adult children have to take on the contract? Does anyone know what the options would be? I'm concerned as I am also not a US resident, so not sure how easy a transfer to them would be with regards to probate etc.

Not wishing this to sound like a morbid post, just need to understand fully and the DVC website is a bit vague.

Thank you in advance

 

[gmi3804]

It’s an ownership in a timeshare, an asset that’s also a liability. You should talk to an attorney who knows the laws in your country.

 

[sethschroeder]

So one thing you could do is have someone else on the contract with rights of survivorship. That means whoever is last living takes over the full contract. There isn't any probate or anything like that I don't think in that situation but I haven't went through it we just set ours up that way to make it easier long term.

Medicine is making strides every day so I hope that you find yourself looking back with more time than you ever thought.

 

[MillauFr]

This question would be more interesting if it was a non-Disney timeshare that really didn't have any value. I don't think the timeshare company could force any of your descendants to take over the contract.

 

[crvetter]

As above the major ways to avoid probate in the Florida courts would be to do so via a contract with rights of survivorship (usually in this case they have full legal access to the assets, same as you), you could do a "transfer-on-death" (in Florida it is named differently and functions a bit differently called a "Lady Bird") which means the deed fully transfers to them as your passing (hoping that is many years from now for you), or if your country has some sort of living trust that can hold the asset it would also prevent them from going through probate.

If you choose to list them on the deed today with rights of survivorship, they would not be able to renounce their claim to their inheritance when they are the only sole title holder as it isn't inheritance in this case because they were always owners.

The other two in the USA have very distinct ways you can renounce your inheritance.

 

[Traveling on cc points]

Do your adult children like going to Disney?
If they do, you could consider putting the contract in their names with the understanding that it is yours to use and pay for until you pass away.

 

[ellataylor]

Many thanks for your replies.

So if I were to add them to the contract with rights of survivorship, i guess they could then sell the contract if they wish to? Disney is our happy place and I would love to leave it as a legacy for them to take their children in the future. As long as they had choice to opt out.

They all do like going to Disney but I don't want to tie them into a financial burden of annual dues and flight/tickets etc in case they cannot afford it ongoing.

Interesting idea of putting the contract in their names, I hadn't thought of that!

 

[Traveling on cc points]

Many thanks for your replies.

So if I were to add them to the contract with rights of survivorship, i guess they could then sell the contract if they wish to? Disney is our happy place and I would love to leave it as a legacy for them to take their children in the future. As long as they had choice to opt out.

They all do like going to Disney but I don't want to tie them into a financial burden of annual dues and flight/tickets etc in case they cannot afford it ongoing.

Interesting idea of putting the contract in their names, I hadn't thought of that!

Just another thought.
It sounds like you have a few kids, maybe buy a few smaller contracts and leave each child 1. The reason I say that is so there is no fighting later on if 1 wants to sell but the others don’t. Splitting up the points and dues would also be difficult if several kids were sharing it.

 

[gmi3804]

Many thanks for your replies.

So if I were to add them to the contract with rights of survivorship, i guess they could then sell the contract if they wish to? Disney is our happy place and I would love to leave it as a legacy for them to take their children in the future. As long as they had choice to opt out.

They all do like going to Disney but I don't want to tie them into a financial burden of annual dues and flight/tickets etc in case they cannot afford it ongoing.

Interesting idea of putting the contract in their names, I hadn't thought of that!

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.

 

[Best Aunt]

Disboard member @drusba had a good comment in this thread:
https://www.disboards.com/threads/dvc-title-after-death-of-spouse.3848098/

 

[jo-jo]

Many thanks for your replies.

So if I were to add them to the contract with rights of survivorship, i guess they could then sell the contract if they wish to? Disney is our happy place and I would love to leave it as a legacy for them to take their children in the future. As long as they had choice to opt out.

They all do like going to Disney but I don't want to tie them into a financial burden of annual dues and flight/tickets etc in case they cannot afford it ongoing.

Interesting idea of putting the contract in their names, I hadn't thought of that!

I wouldn’t worry about financial burden. If they can’t afford to go ,renting out the points would take care of the dues. Many companies will pay you so much and then turn around and rent them .

 

[gmi3804]

I wouldn’t worry about financial burden. If they can’t afford to go ,renting out the points would take care of the dues. Many companies will pay you so much and then turn around and rent them .

And they’ll know to do this how, exactly?

 

[CarolynFH]

Many thanks for your replies.

So if I were to add them to the contract with rights of survivorship, i guess they could then sell the contract if they wish to? Disney is our happy place and I would love to leave it as a legacy for them to take their children in the future. As long as they had choice to opt out.

They all do like going to Disney but I don't want to tie them into a financial burden of annual dues and flight/tickets etc in case they cannot afford it ongoing.

Interesting idea of putting the contract in their names, I hadn't thought of that!

Yes, if they are added as owners with rights of survivorship, they could sell the contract. Or if the financial burden of dues and travel was too much for them, they could stop paying the dues and allow DVC to foreclose on the contract.

 

[ellataylor]

Just another thought.
It sounds like you have a few kids, maybe buy a few smaller contracts and leave each child 1. The reason I say that is so there is no fighting later on if 1 wants to sell but the others don’t. Splitting up the points and dues would also be difficult if several kids were sharing it.

Yes I have 4 daughters so need to make sure they all have choice in the matter!

 

[ellataylor]

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.

I will definitely research this, thank you!

 

[ellataylor]

Disboard member @drusba had a good comment in this thread:
https://www.disboards.com/threads/dvc-title-after-death-of-spouse.3848098/

Thank you so much for the link

 

[fitnessmouse]

Renting from outside is not that easy if they’ve never done it. Only rental agency that does not require an ITIN or SSN is Davids

 

[ellataylor]

What ever I decide I will definitely educate my girls on their choices going forward. I just wanted to make sure I don't miss anything and make choices now that means the least hassle and most choices for them later on.

 

[ellataylor]

Yes, if they are added as owners with rights of survivorship, they could sell the contract. Or if the financial burden of dues and travel was too much for them, they could stop paying the dues and allow DVC to foreclose on the contract.

Oh so Disney just withdraws the contract if you died and no one paid the dues?

 

[CarolynFH]

Oh so Disney just withdraws the contract if you died and no one paid the dues?

Disney goes through a foreclosure process and takes the contract back. Under Florida law, that's all they can do - they can't go after your estate or your kids for payment of back dues. When you pass, your kids can simply leave it alone, not pay dues or anything, or they can contact DVC and tell them to take it back.