Willing DVC to kids?

[Raven01]

I know the lease contracts have an existing end date. My father is pondering buying DVC, but only if he can leave his interest to his children in a will. Is this possible? It would seem so but this is a big concern for him, so I wanted to check.

 

[OKW Lover]

Yes this is possible. Just have his lawyer include it in the will.

 

[Mumof4mice]

It may be easier to title the deed with your father and the children's names in the first place (as joint tenants with right of survivorship). That way the ownership change would be automatic and you wouldn't have to worry about the dvc membership on top of everything else at a difficult time.

 

[rcchello]

From what I understand is that Florida probate on timeshares is a real problem for out of state residents. Have him set up a trust with the kids as successor trustees and have the trust own the DVD contract. A trust can give you more flexibility than the joint tenant route. The trust can also be used for his other real estate if the inheritance goals are the same, especially in states where probate costs are high.

 

[Mumof4mice]

From what I understand is that Florida probate on timeshares is a real problem for out of state residents. Have him set up a trust with the kids as successor trustees and have the trust own the DVD contract. A trust can give you more flexibility than the joint tenant route. The trust can also be used for his other real estate if the inheritance goals are the same, especially in states where probate costs are high.

Are all directors of the trust (and their children) eligible for membership benefits? Have to admit I didn't think of purchasing the contracts using our existing property investment trust. It sounds like a great idea! Are there any downsides?

Setting up a trust specifically to hold a small DVC contract may not be worthwhile though due to the set up cost and yearly accounting and company register fees.

 

[Dean]

It may be easier to title the deed with your father and the children's names in the first place (as joint tenants with right of survivorship). That way the ownership change would be automatic and you wouldn't have to worry about the dvc membership on top of everything else at a difficult time.

In this situation that's likely the best option if it's important.

Note it can't be broken up into smaller pieces unless it's bought that way up front.

From what I understand is that Florida probate on timeshares is a real problem for out of state residents. Have him set up a trust with the kids as successor trustees and have the trust own the DVD contract. A trust can give you more flexibility than the joint tenant route. The trust can also be used for his other real estate if the inheritance goals are the same, especially in states where probate costs are high.

True but only if a trust makes sense otherwise and it doesn't for many people due to the aggravation and costs involved. The aggregate costs of setting up a trust and the yearly management would likely be more than the total cost of a new DVC over a number of years. Far cheaper to get a lawyer to handle the probate at the end than do a trust mainly for DVC, total cost likely $2000-3000 for DVC alone, setting up a trust will likely cost around that much. Certainly if a trust makes sense otherwise, I'd include DVC in the trust esp if it can be done at the buy.

 

[MJB62676]

we bought our 200 points as 2 seperate 100 point contracts for specifically this reason. Trust dictates that each kid gets one contract....or will.

 

[WallE71]

I was going to suggest a trust too. Wills are really outdated and sometimes still have to go to probate. Not that way with a trust. So much easier.