Adding names to our contract and any tax implications

[O'MalleytheAlleyCat]

My husband and I own two separate DVC contracts. Our children are now 20 and 24 years old and although one is still living with us (actually going to college), the other has moved out on his own and is no longer considered a part of our household. Therefore, he doesn't qualify to get any DVC discounts, such as the discounted AP. If we were to add our kids to our current DVC contracts, but continue to pay the annual dues ourselves, would this have serious tax implications for anyone? This kind of thing is WAY out of my league, as I'm a healthcare professional and someone else does my taxes. My son is working two part time jobs and not making a ton of money and as I mentioned, daughter is going to college but will need to start submitting taxes on her own due to internships worked. We would plan to give those contracts over to the kids at some point anyway once we get (quite a bit) older, but wondered if anyone had experience with this and could give any advice. Thanks!

[DizneyRox]

Adding them is going to cost some money. Its a real estate transaction just like buying a house. You can do it though and they would be eligible for the discounts, etc.

You'd have to check with DVC. If you're financing, they would need to apply for credit, etc I believe. Costs are not quite another set of closing costs, but they aren't trivial IMHO either.

[disneymom15]

We wanted to put daughter and son in law on our contracts too. Because it would have cost us around a $1000, we decided to purchase a small (25 points) resale contract in their name.

[O'MalleytheAlleyCat]

Wow....I had no idea it could cost that much to add their names. We have also considered buying an additional contract along with them, so maybe that would be the way to go. Thanks so much for the information...I knew there would be someone here who could give us the facts!

[JMTStone]

SMART way to get them into the system!

[DizneyRox]

Keep in mind though, a small contract with different owners, is a separate contract. In order to really use those points, they will need to transfer them to you (or you to that account). You are only allowed one transfer per year (coming or going) per account.

So, each year, both contracts will be used up in terms of transferring.

Again, manageable, but it's something to think about.

We sold our old contract, bought a new one that included everyone we wanted, and left it at that. Easier...

[O'MalleytheAlleyCat]

Keep in mind though, a small contract with different owners, is a separate contract. In order to really use those points, they will need to transfer them to you (or you to that account). You are only allowed one transfer per year (coming or going) per account.

So, each year, both contracts will be used up in terms of transferring.

Again, manageable, but it's something to think about.

We sold our old contract, bought a new one that included everyone we wanted, and left it at that. Easier...

Good thought! I think we would consider an additional smaller contract with our names in addition to the kids' names to match one of the resorts/use years we already own. That would hopefully make things easier and wouldn't require any transferring.

[Hammer]

Good thought! I think we would consider an additional smaller contract with our names in addition to the kids' names to match one of the resorts/use years we already own. That would hopefully make things easier and wouldn't require any transferring.

Still will require a transfer because all of the owners on both transactions need to match. I will use myself as an example. I bought my contract at SSR in just my name. When I added a 98 point contract at OKW, My sister and my mother purchased with me, so they are on the contract. As the owners are different, I have 2 membership numbers. We take advantage of the 1 allowed transfer and put all points in the contract that has all of our names.

We found the cost to add my sister to my first contract is not worth it.

[O'MalleytheAlleyCat]

Christine, thanks so much for that clarification. I'll have to think this through a bit more now. Hmm.....

[dnickels]

If the goal is to give the kids access to the DVC AP purchase (and any other DVC discounts), it's probably not worth it financially. Those discounts are nice to have, but hardly huge $$ savers.