What is worst case scenario with add kids to contract?

that is exactly why i am asking for the AP discounts, they easily go 10 or more day a year when we do AP

I get why people do it. Seeing as how my children are very young, I can’t say for sure what I will do. I’m just always looking at a million bad outcomes that could happen. I can’t help it. You learn all the messed up things people do in law school, and it makes you jaded.
 
I was told by DVC that no kids (minor 21yrs) could be added.. how did you manage to include them please?
 
that is exactly why i am asking for the AP discounts, they easily go 10 or more day a year when we do AP

I think the hard part for you will be deciding if the worst case can be lived with, especially given that you are adding them to the only contract that has the benefits.
 


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)?

Depends on your state. Depends on the attorney. Depends on a lot of things.

That’s why you think of the worst case, which would be that that child’s portion would be on the chopping block and you’d have to prove their percentage and somehow that money would need to be transferred to the ex spouse.

could i have them sign a paper saying they have no legal right to book or sell or rent?

They DO legally have the right. So no. Literally what you are giving them is all of the rights of being full owners.

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

They might not, but they could. They can call DVC and get an account and make or cancel reservations.

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?

Anything.

Divorce is vile and disgusting under the best of circumstances. (And necessary under the worse circumstances, but still also atrocious) Awful things happen.

Yes I’m still getting over my sudden divorce. And he *gave me* the DVC contract and the house (aka the mortgage) and other things, but it is still absolutely awful to go through.

You just never know how bad it might get. Or maybe it’ll be peaceful. You just don’t know.

And bankruptcy again could end up with you proving how much they own and someone handing over that amount.

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.

Can also go in between with a company like LT Transfers. About $200.

You would be better off contacting a legal professional to find out the ramifications / worst case scenario type thing.

YES.
 
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?

You can add adults not minors. You add new owners by actually issuing a new deed to the existing and new owners. You have to be real careful how that is done. When a husband and wife purchase a WDW timeshare, the Florida deed will say the property is being transferred to the owners as husband and wife, which creates a tenancy in entirety, which means that both must agree to any further transfer; if one dies, the other automatically becomes the owner; and debtors of one of the spouses cannot force a sale of the property to pay off that one spouse's debts.

Adding anyone else eliminates the ability to have tenancy in the entirety. What you can do is make the new deed state that its owned in joint tenancy with right of survivorship. That also means that the death of one owner simply means the remaining living owners are the only owners. One cannot sell his interests without all others agreeing. However, the creditor of one of the owners can seek to have that owner's share, and thus possibly the entire ownership interests, sold to pay off an unpaid debt, e.g., a bankruptcy court for that one owner could order the sale.

The new deed could also state that ownership is in tenancy in common, and if you fail to state it is joint tenancy with right of survivorship, it will be presumed to be tenancy in common. In that situation any owner can sell or otherwise transfer his interest to another without the other owners' permission, with the result that you could have a new stranger claiming reservation rights as a member. Any tenant's ownership share can be claimed by a creditor to pay off unpaid debts. Death of an owner means that owner's heirs get his interest.

As to control of reservations, everyone on the deed becomes a member in DVC's system and any one of them can make a reservation or cancel anyone else's reservation. If the spouse of one of the children was not added to the deed and the adding of the child was in fact a gift, then separate ownership in the case of divorce may be maintained, but there could be disputes from a divorce that have to be resolved.

If you attempt to have them sign an agreement that they will not book, sell or rent, you may later get disputes about the validity or effect of that agreement. DVC could claim that no real ownership transfer took place because you took away the material rights that are associated with ownership and, what you are really doing is just improperly creating an agreement to obtain for non-owners membership rights such as the ability to get incidental benefits. Moreover, making such an agreement creates what is called in the law a transfer for "consideration" (a form of payment from the child), and thus it is no longer a "gift," and Disney could possibly (a) insist on exercising its right of first refusal and possibly take the property, or (b) assert it is really a resale as far as the new designated owners are concerned and limit their rights as resale owners.

Also note, and I assumed it does not apply, if the existing ownership still involves a loan for the purchase that is being paid, you cannot possibly add anyone to the ownership without the lender's permission or first paying off the loan.
 
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This is real estate that absolutely can get tangled up in divorces or bankruptcy or lawsuits or tax liens or a million other worst case scenarios where someone's problem becomes everyone's problem.

That doesn't mean I wouldn't do it, but the worst case scenarios are real risk. The exit strategies are also tricky because everyone has to agree to sell (or be bought out).

I would at least make sure everyone is on the same page with DUES, with the risks involved, and with exit strategy. This is much harder to undo than it is to do.
 


If I add my adult, married daughter to one of my small contracts. Does her spouse get the member perks because they live in the same household or would I need to add him too?
 
If I add my adult, married daughter to one of my small contracts. Does her spouse get the member perks because they live in the same household or would I need to add him too?

He would be eligible for the AP, but won’t get a blue card.
 
I am a former bankruptcy attorney and worked for a Chapter 7 trustee. The value of the contract would be the resale value divided by 3 (if it's only the 3 kids) and it's a 25 point contract. So, that would be in the range of at most $1500 (and that's valuing each point at a very generous $180 resale). It is only a partial interest and the cost of transferring it would eat up most of the value. No bankruptcy trustee is going to bother with that.

As far as divorce goes, states vary in how they handle pre-marital property. Again, though, the actual value is so small, if worse came to worst, you could probably pay that amount rather than encumbering or transferring the interest (in most states, it would be exempt). As far as one of the kids encumbering it, I cannot fathom any lender that is going to take an interest in 1/3 of a 25 point contract. To actually put a lien on it requires filing with the clerk and would be cost prohibitive and foreclosing on that lien would far exceed the value of the interest. While certainly you shouldn't rely on advice from the internet, logic should tell you that the risk is minimal in any of these scenarios. The biggest risk is that someone gets angry with someone else over the use of points or paying maintenance fees. This risk is very real and could be far more costly than any legal scenario.
 
To actually put a lien on it requires filing with the clerk and would be cost prohibitive and foreclosing on that lien would far exceed the value of the interest.

A lien is a known risk that can go with any judgment, not just bankruptcy. And filing a lien doesn't require foreclosing.

While certainly you shouldn't rely on advice from the internet, logic should tell you that the risk is minimal in any of these scenarios.

We have no idea what the risk is for these people involved. This is a shared property interest, like any timeshare. It absolutely can get dragged into many ugly scenarios that happen every day: ugly divorces, lawsuits, bankruptcy, disputes over selling, and so on. These are not "minimal" rare things. Hopefully not, but this post was about worst case scenarios.
 
I am a former bankruptcy attorney and worked for a Chapter 7 trustee. The value of the contract would be the resale value divided by 3 (if it's only the 3 kids) and it's a 25 point contract. So, that would be in the range of at most $1500 (and that's valuing each point at a very generous $180 resale). It is only a partial interest and the cost of transferring it would eat up most of the value. No bankruptcy trustee is going to bother with that.

As far as divorce goes, states vary in how they handle pre-marital property. Again, though, the actual value is so small, if worse came to worst, you could probably pay that amount rather than encumbering or transferring the interest (in most states, it would be exempt). As far as one of the kids encumbering it, I cannot fathom any lender that is going to take an interest in 1/3 of a 25 point contract. To actually put a lien on it requires filing with the clerk and would be cost prohibitive and foreclosing on that lien would far exceed the value of the interest. While certainly you shouldn't rely on advice from the internet, logic should tell you that the risk is minimal in any of these scenarios. The biggest risk is that someone gets angry with someone else over the use of points or paying maintenance fees. This risk is very real and could be far more costly than any legal scenario.


thank you for the reply.if the only real risk is if one or all get mad about maintenance fees or how the points are used ,there would be no risk i would pay all maintenance fees and do all the booking. so after all the reply i have seen i am more then willing to take what ever risk my come up. once aging thank you all for your advice in this matter
 
We have no idea what the risk is for these people involved. This is a shared property interest, like any timeshare. It absolutely can get dragged into many ugly scenarios that happen every day: ugly divorces, lawsuits, bankruptcy, disputes over selling, and so on. These are not "minimal" rare things. Hopefully not, but this post was about worst case scenarios.
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my main concerns was what bank and or law could do. if there is little to no risk i would lose the benefits of the contract by the law or bank taking them, i have no fear what so ever what my kids would do ,(i know things can and will change, but i will throw that dice everyday and twice on Sunday)
 
A lien is a known risk that can go with any judgment, not just bankruptcy. And filing a lien doesn't require foreclosing.



We have no idea what the risk is for these people involved. This is a shared property interest, like any timeshare. It absolutely can get dragged into many ugly scenarios that happen every day: ugly divorces, lawsuits, bankruptcy, disputes over selling, and so on. These are not "minimal" rare things. Hopefully not, but this post was about worst case scenarios.

A judgment lienholder would be unlikely to foreclose on such a low value asset (from a purely monetary standpoint). The lienholder would, however, have to be paid if the property transferred but that is quite different from someone getting their name on the deed as was surmised.

Of course there is always the chance of someone deciding that money is no object and they want to get back at someone. I'm only speaking from my experience as a litigation attorney for many years. Of my hundreds of clients only one wanted to spend more collecting a judgment than they would get. I am simply, as I believe the OP was implicitly asking, providing some insight on the likelihood of the worst case scenarios actually occurring.
 

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