Buying Marriott in a Trust?

[Dean]

The alternative is to add the children to the deeds instead of a trust. This is my current plan. Either way I would not do either of these strategies unless I could leave sufficient assets to cover the fees or the heirs were set and prepared to handle the yearly costs.

 

[SteveinHNL]

The alternative is to add the children to the deeds instead of a trust. This is my current plan. Either way I would not do either of these strategies unless I could leave sufficient assets to cover the fees or the heirs were set and prepared to handle the yearly costs.

The issue with adding your children to the deed is that they would then become responsible for the maintenance fees, which they may prefer not to pay even if funds are left to cover them. Another horrible possibility that no one thinks would happen to them is that once added to the deeds, children have a present right to exercise ownership privileges that may not yet be intended to be conferred.

 

[SteveinHNL]

I think it is best to create a separate living trust only for your timeshares.

 

[Dean]

The issue with adding your children to the deed is that they would then become responsible for the maintenance fees, which they may prefer not to pay even if funds are left to cover them. Another horrible possibility that no one thinks would happen to them is that once added to the deeds, children have a present right to exercise ownership privileges that may not yet be intended to be conferred.

The same downsides as a partnership with divorce, disinterest, and the like. We've accounted for all of that and for us, it will be a better approach that a trust which would be locked in once we deceased.

 

[SteveinHNL]

The same downsides as a partnership with divorce, disinterest, and the like. We've accounted for all of that and for us, it will be a better approach that a trust which would be locked in once we deceased.

The terms of the trust are locked in but you can build the terms to have extreme flexibility.

 

[danill]

The terms of the trust are locked in but you can build the terms to have extreme flexibility.

We are considering this decision - trust or no trust - and would greatly appreciate some help. Our situation is a combo of points and a deeded week that put us at Chairman status.

- Could my wife and I be considered as equal owners by MVC, or does there need to be a primary individual? Or does a RLT even allow equal ownerships?
- Can you link a Bonvoy account when making reservations in order to get credit for stays?
- Should we set up a trust just in my and my wife's names, or include the kids? Is there any benefit to them when making reservations, where the system / resort would or would not recognize them as having chairman status?
- Is there a possibility - or reason - to change the trust ownership over time?
- What happens if one of our three kids decides they do not want their "inheritance" to remain inside the trust we set up with intentions of it being shared between them when we are one?
- I've seen comments regarding the wording of the trust title - first word "The" (don't do it) or last word "Trust" (guessing this is a legal requirement). Are there any other tips / do's / don'ts?
- Is there someone, or some resource, at MVC that is available for questions?

Thanks in advance!

 

[Lakeshore]

These are all excellent questions. I hope others chime in. I have a question, too about whether to put new timeshare deeded weeks in trust or not…
We purchased a deeded week directly from Marriott in 2004 and now are going to purchase more weeks resale. Should we just have the new weeks put in our revocable trust or have them in our names and then change the original week to our names?
I want things to be easiest when I book multiple weeks with the 13 month window(vs. single week 12 month), and also for the the weeks to be linked to our Bonvoy account that we have had for 28 years.

 

[larryallen]

These are all excellent questions. I hope others chime in. I have a question, too about whether to put new timeshare deeded weeks in trust or not…
We purchased a deeded week directly from Marriott in 2004 and now are going to purchase more weeks resale. Should we just have the new weeks put in our revocable trust or have them in our names and then change the original week to our names?
I want things to be easiest when I book multiple weeks with the 13 month window(vs. single week 12 month), and also for the the weeks to be linked to our Bonvoy account that we have had for 28 years.

Generally speaking all real estate should be in a trust to avoid probate after death (or conservatorships during life which is even worse). For example, Hawaii probate laws are cumbersome. Way easier to pay a few hundred bucks during life and have them deeded to a trust. I have recommended Hawaii Deed Service before and found them to be very easy to deal with. The attorney there is named Jerry Garcia. There is no need to have separate trusts as others above mentioned. That's a waste. It's not complex. A timeshare is just an asset and Marriott has absolutely no problem with trust ownership. All of our timeshares are in our revocable trust. Even if a timeshare has little to no value, as many do, you want to make it easier for your loved ones to give it away/deed back to developer/etc... so put it in a trust. Also, to the person up above whose attorney said to do a will with testamentary trust provisions that's bad advice if there is real estate (including timeshares) in states with cumbersome probate laws like Hawaii, Texas, New York, etc.... I would guess in all cases it's easier to deed to trust during life than to clean up mess after death. Obviously laws are different everywhere and each individual's situation is unique so hire an attorney to help get it right for YOU!

 

[Lakeshore]

Thank you larryallen.