What is worst case scenario with add kids to contract?

the_grinch

Mouseketeer
Joined
Jan 22, 2008
I keep reading how it is a bad thing to add adult kids to a contract.so my question are if i add 1 or 3 kids to a 25 point direct contract(before restrictions so has blue card perks) what is the worst that cam happen.

1.Can anyone of the 3 new kids sell it without all of agreeing to it?
2. is it the first to make a reservation gets to control the point for that year (also borrow)?
3. if 1 of the kids married (all single right now)would the spouse have a right to it if divorced (was an asset before marriage)?
4. could i have them sign a paper saying they have no legal right to book or sell or rent?

to be honest i trust all my kids 100 %(and if they did sell without consent i would be ok with it because i would know in my heart of heart it was the last resort) i ask this only as to what otheres (back loans and ex's )can legally make them do.hope my question make sense

one last thing i as have a 200 point resell i would not add them to it so i would think it would be a none issues am i correct in that?
 
I keep reading how it is a bad thing to add adult kids to a contract.so my question are if i add 1 or 3 kids to a 25 point direct contract(before restrictions so has blue card perks) what is the worst that cam happen.

1.Can anyone of the 3 new kids sell it without all of agreeing to it? No
2. is it the first to make a reservation gets to control the point for that year (also borrow)? No
3. if 1 of the kids married (all single right now)would the spouse have a right to it if divorced (was an asset before marriage)? Maybe
4. could i have them sign a paper saying they have no legal right to book or sell or rent? No
It’s not necessarily a bad thing to add adult children to your contract as long as you are aware of the consequences. Your children will become a legal deeded owner on the contract with all rights of ownership and with that also comes exposure to their liabilities. If you wish your children to have “blue card” membership privileges adding them to a 25 point contract is a pretty painless risk.
 
They can’t sell without others signing as every one is now a legal owner of the contract,

In terms of divorce, it may or may not be...but, if one was concerned, just have someone sign a type of pre-nup in which the future spouse waived any right,

Yes, the kids would have their own log in and would be able to book trips, including borrowing on their own. But, you, or any of them, could go in and cancel it just as easily.

The one aspect someone else has mentioned is bankruptcy and it could need to be considered in that,

I just added my 3 kids to both a resale SSR contract so I could add on RIV as part of that membership with us all as owners,

Just be aware, that once you change the names, it will be a new membership and can’t stay with the resale contract as the owners would be different. So, those 25 points would no longer be able to be used with the others without the transfer,

There is One thing I don’t know, and it’s a big one. Since it has to become a new membership, it may no longer count for perks and you’d be required to up to 100.

If that is the case, then the only way would be to add them to owners of all contracts in that membership.
 
There is One thing I don’t know, and it’s a big one. Since it has to become a new membership, it may no longer count for perks and you’d be required to up to 100.
As long as it is a gratuitous transfer (no compensation in any form exchanged) then the contract remains all entitlements. So it would still work as a contract that gets a blue card.
 


Thank you for the reply so in the case of bankruptcy could the court make all of us sell or would the bankruptcy name be put on the deed (i know nothing about bankruptcy )so if none of us ever sold we would loose nothing we would just loose if we sold?
 
As long as it is a gratuitous transfer (no compensation in any form exchanged) then the contract remains all entitlements. So it would still work as a contract that gets a blue card.

Perfect! That would be good if that is the main reason for adding the kids.
 
Thank you for the reply so in the case of bankruptcy could the court make all of us sell or would the bankruptcy name be put on the deed (i know nothing about bankruptcy )so if none of us ever sold we would loose nothing we would just loose if we sold?

I don’t know how bankruptcy works so I can’t help with that one. But maybe if one of the owners was involved, the other owners could buy that persons share?
 


I did something similar with a small contract. However, I hold the keys to the kingdom, so to speak. They don’t really own it, as we pay the dues. So, nobody else gets to log in and make reservations or changes. I make all the arrangements. We did so for the blue card for them. And they and their friends or family usually will accompany us on trips. It works for us. Can’t help you with divorce or bankruptcy.
 
They don’t really own it, as we pay the dues. So, nobody else gets to log in and make reservations or changes.
Yes, they really do own it if their name is on the deed. It doesn't matter who pays the dues. Each owner on the deed has a membership number and can create their own login. It sounds like they just didn't get the email with their membership number and instructions to create an account. We have 5 people on the deed of one of our contracts and each of us has our own DVC account with access to that contract.
 
I did something similar with a small contract. However, I hold the keys to the kingdom, so to speak. They don’t really own it, as we pay the dues. So, nobody else gets to log in and make reservations or changes. I make all the arrangements. We did so for the blue card for them. And they and their friends or family usually will accompany us on trips. It works for us. Can’t help you with divorce or bankruptcy.

Any of your adult children can call up DVC and get a log in and would be allowed to book and use the membership if they are on the deed, Absolutely nothing you can do about that .

I pay everything for mine as well, and all 3 of my kids got the codes needed to set up their DVC and all 3 did.

Now, none of them would book rooms without asking me first, but that has to do with our relationship and not because they are not entitled too,
 
Any of your adult children can call up DVC and get a log in and would be allowed to book and use the membership if they are on the deed, Absolutely nothing you can do about that .

I pay everything for mine as well, and all 3 of my kids got the codes needed to set up their DVC and all 3 did.

Now, none of them would book rooms without asking me first, but that has to do with our relationship and not because they are not entitled too,

Now, none of them would book rooms without asking me first, but that has to do with our relationship and not because they are not entitled too,
this is what my question is asking i know my kids would not willing do me wrong but what can an ex or court make them do?
 
Sorry I didn’t mean that the way it came out. I know they technically own it too. But having them all have control over a small contract can add up to trouble down the road. Sibling squabbles, husband/wife issues, etc. I take care of reservations. Those are my rules.
 
It may vary from state to state, but I would imagine that ex spouse wise, it was property before marriage. Not sure about bankruptcy courts. Also there is a fee involved when changing the deed. I used a title company and it was over $400. You can do it yourself cheaper. Someone on the DVC boards recently posted a step by step on how they did a deed transfer.
 
Now, none of them would book rooms without asking me first, but that has to do with our relationship and not because they are not entitled too,
this is what my question is asking i know my kids would not willing do me wrong but what can an ex or court make them do?

I can’t answer regarding a court, but yes, as long as they are a joint owner, the asset would be considered as such and would be vulnerable to the rules of divorce or bankruptcy

So, yes, once they are owners legally, the contract can you could suffer some loss if one of them ends up having some issue.

I took a risk doing what I did but It would have been theirs down the road anyway. What I will say is if something happens with one of them and it effects it, the loss to the other children will be compensated in some way in terms of inheritance..which was discussed as well.
 
Sorry I didn’t mean that the way it came out. I know they technically own it too. But having them all have control over a small contract can add up to trouble down the road. Sibling squabbles, husband/wife issues, etc. I take care of reservations. Those are my rules.

Lol! Okay,,,that makes sense!
 
sorry for being thick ,just so i get it. the court could make anyone of us sell even if the rest do not want to ,and when you say to buy there share if all my kid say there share is $1.00 is that all the count can make them pay for there share .i am just trying to understand what can a court make anyone of us do to the contract if they do not want to do anything to it, but are legally made to
 
I believe the court would base the value off of current resale values. If they were 1/5 owners of 25 points at SSR, based off of $100 per point, their asset would be worth $500. You/they would need to remove them from the deed and provide $500 to offset the liabilities. In divorce, the ex- spouse would likely get $250 bucks else where in the decree.
I added my 2 adult DD's to a 25 point qualifying contract at SSR. It exposed me to $1250 total between the two. They have already gotten 3 AP's (DD, DSIL, DD), food and souvenir discounts, gone to the member lounge, TOTWL, MM, and early access for RunDisney. They also have incredible satisfaction in being "members". For me it is already worth it in 2 years. Now if I were adding them to 250 point contract at VGF, and the exposure was $21000, that would be a different story.
 
You would be better off contacting a legal professional to find out the ramifications / worst case scenario type thing.

I would think that one of the worst case scenarios is that one of the kids puts this property interest up as collateral for a loan and doesn't pay the loan off, resulting in a possible foreclosure of the property.

No owner can sell off the property without the other person's consent or a court order (a "partition" lawsuit.)

As co-owners, any single owner can make reservations for him or herself and use up the points for the year. Likewise, another owner could cancel the reservations made by a co-owner.
 
I would just put it in a trust and be done with it. Have the deed transfer to the kids upon yours and your spouse's death. I don't see the reason to add adult children onto the deeds other than to get them the AP discounts. It just isn't worth it to me with all that could happen being co-owners with adult kids. That's just my personal opinion.
 
I would just put it in a trust and be done with it. Have the deed transfer to the kids upon yours and your spouse's death. I don't see the reason to add adult children onto the deeds other than to get them the AP discounts. It just isn't worth it to me with all that could happen being co-owners with adult kids. That's just my personal opinion.
that is exactly why i am asking for the AP discounts, they easily go 10 or more day a year when we do AP
 

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