Convoluted gifting of DVC contract

[GinnyBear's_mom]

So gift it then. Don't do this mess with joint title and a half transfer.

It sounds like OP is trying to get a deal on something they can't afford and the elder doesn't want to gift.

This is a five figure asset. Do it right.

I said previously that we have the cash on hand to buy a contract on the resale market at current pricing but considering the job market and economy we would prefer to be frugal right now in case one of us is out of work. She does not want us to buy her contract outright at this time and she does not want to sell it on the open market since she still wants to travel. I'm not understanding the claims of elder abuse as she came to us with this proposition, not the other way around. She is of sound mind, she runs several investment properties with multiple tennants. I think she feels if we jointly own it she can get a few more vacations in. She has no one to travel with and has no interest in travelling by herself. We have offered to let us join in on our plans in the past (staying seperately) but she does not have an interest in staying seperately, she would rather stay in a connected room, like a 2 bedroom villa where we cook the meals and make the plans and reservations for her. She previously offered to rent us her points but at such a low rate it didn't even cover her dues for the year.

 

[RoseGold]

She is of sound mind, she runs several investment properties with multiple tennants. I think she feels if we jointly own it she can get a few more vacations in.

So convoluted and makes no sense, just like you said. Are you buying it? No, then why are you an owner? Are you just buying out the points? Why on earth do you need to be on the title to get some points transferred? What are you doing?

If you think this criticism is bad on an anonymous message board, wait until you are tangled up in probate or Medicare fraud.

If you can't buy it, don't. If you want to buy it OR transfer/rent some points, great. Do one or the other. This is worth a lot of money. Do it right.

 

[Sandisw]

So convoluted and makes no sense, just like you said. Are you buying it? No, then why are you an owner? Are you just buying out the points? Why on earth do you need to be on the title to get some points transferred? What are you doing?

If you think this criticism is bad on an anonymous message board, wait until you are tangled up in probate or Medicare fraud.

If you can't buy it, don't. If you want to buy it OR transfer/rent some points, great. Do one or the other. This is worth a lot of money. Do it right.

With all due respect, I think you are assuming things that have been shared that dispute that the owner is somehow not aware of what she is doing,

Adding non relative to a deed vis gratuitous transfer may be easier than completely changing ownership from DVCs eyes.

Also, by staying an owner, this woman still has access to use the points too and maybe that is what she wants...to be able to use with the OP but not give up total control.

As long as the OP, the woman and her children are all on board, then the transaction is a sound one.

 

[RoseGold]

I agree with the arrangement, the rent to own is pretty cool. Except the joint title! I don't see how it accomplishes any of Barbara's goals, there's no need to put OP on the title for paying a year worth of dues. OP said that she doesn't want to spend the money, so she shouldn't be an owner. That's the thing about rent to own. You don't own it until the end. You don't own the thing and then keep renting it from yourself.

If someone did this to my elderly mom, I would be furious. Really? You're on the title after paying $1,200 in 2021 dues???

If you get tangled up in Medicare with this kind of messiness, you'll wish you never considered this.

 

[eMoneyBug]

...even though her own children may not be Disney fans this is a $20K+ asset that they should inherit (assuming all relationships are still good) If she wasn’t so old/uninformed someone could be help her to sell/transfer out the points and she would easily make 175x$8-9=$1500 per year by not using the points.

it looks like you’ve been treating her as a friend which is great awesome loving but it sounds like you also really don’t need this great deal / understanding but if you know all her kids are well off and don’t either than really no harm done.

if she has grandkids, encourage her to leave an original BLT to them! Direct original owners that’s legacy!!!

 

[Sandisw]

I agree with the arrangement, the rent to own is pretty cool. Except the joint title! I don't see how it accomplishes any of Barbara's goals, there's no need to put OP on the title for paying a year worth of dues. OP said that she doesn't want to spend the money, so she shouldn't be an owner. That's the thing about rent to own. You don't own it until the end. You don't own the thing and then keep renting it from yourself.

If someone did this to my elderly mom, I would be furious. Really? You're on the title after paying $1,200 in 2021 dues???

If you get tangled up in Medicare with this kind of this, you'll wish you never considered this.

The children are being consulted and if they are okay with it, that is all that matters. But even if they are not, unless a person is deemed incompetent, they have the right to make their own choices.

If there is a look back for some level of Medicare or Medicaid, then it’s the same as always...it is included as an asset that would need to be sold, but then again, a timeshare may not necessarily be treated the same foe those purposes.

I guess I don’t see how this is an issue if the owner wants to allow this person to become an owner with her for the cost of covering the dues.

 

[GinnyBear's_mom]

I do sincerely appreciate everyone's input.

She is aware of what she can sell it for through places like DVC resale market and knows this arrangement is considerably lower than what she can sell it to a stranger for. I know she has well over a million in assets as well as a sizeable amount of regular income from her rental properties which would make her ineligible for Medicaid for the near future but I will discuss the Medicaid look back period with her since no one I know has a crystal ball

 

[Chuck S]

I do sincerely appreciate everyone's input.

She is aware of what she can sell it for through places like DVC resale market and knows this arrangement is considerably lower than what she can sell it to a stranger for. I know she has well over a million in assets as well as a sizeable amount of regular income from her rental properties which would make her ineligible for Medicaid for the near future but I will discuss the Medicaid look back period with her since no one I know has a crystal ball

I've known a few very generous people like her in my lifetime. She sounds like a lovely person. Generally people with those kinds of assets, the kids couldn't care less about a few thousand in gifting to people they consider true friends. I'm sure she deeply appreciates your friendship and everything you do for her. I say, take her up on her kind, generous offer, but be sure the legal paperwork is in place.

 

[ford91exploder]

So gift it then. Don't do this mess with joint title and a half transfer.

It sounds like OP is trying to get a deal on something they can't afford and the elder doesn't want to gift.

This is a five figure asset. Do it right.

Gifting has tax consequences which the donor pays, And it can be seen as 'sequestering assets' wrt Medicare. So the safest bet is pay for points and have it left to her friend upon her passing.