Personal Inheritance Trust Structure for Timeshares?

[Cobra1950]

What does the TUG group have on thoughts as to what kind of inheritance trust would be best to set up so my wife and I can pass both legacy and DC points to our two children so that they can share ownership and pay MFs in some organized fashion? Our thought is to pass this to them before we die to let them pick up costs as we are ending our travelling days--they both enjoy using them but we do not want to break up weeks into individual pieces.
Also, my understanding from Marriott originally (12 years ago) was that any legacy weeks pass to heirs intact including any Marriot Rewards points (not DC) and in reading other postings on TUG any DC points pass directly to heirs.
I am sure at least a few Tuggers have had to go down this path

 

[FractionalTraveler]

Unless your timeshares are worth over a million dollars, I wouldn't even go through all that trouble. Just assign ownership to your children via a simple call to Marriott, pay a nominal transaction fee, and your done.

Trusts are typically used to pass valuable assets such as real estate to heirs without the lenthy process of probate. Also, if the asset value is less than 1 million then taxation is usually not an issue.

Another way to structure the handoff is throuth the use of an LLC for asset prtoection. In fact you could use similar model of DC (Land Trust).

The LLC also gives you certain personal protection from judgement creditors.

 

[ronparise]

Unless your timeshares are worth over a million dollars, I wouldn't even go through all that trouble. Just assign ownership to your children via a simple call to Marriott, pay a nominal transaction fee, and your done.

Trusts are typically used to pass valuable assets such as real estate to heirs without the lenthy process of probate. Also, if the asset value is less than 1 million then taxation is usually not an issue.

Another way to structure the handoff is throuth the use of an LLC for asset prtoection. In fact you could use similar model of DC (Land Trust).

The LLC also gives you certain personal protection from judgement creditors.

This answer assumes that the reason for a trust is estate tax management. There are other reasons for a trust..one of which is so that the current owner can manage the asset from the grave...Trusts are often used for Vacation property. like that $3000000 beach house that everyone wants to use, but no one wants to own...the trustee would make sure that one beneficiary doesnt take advantage of another and enforce the rules laid down by the dead guy...and make sure the bills get paid,,,no different for timeshares..I would suggest that the trust be funded so that the income would be enough to pay the maintenance fees..If your maintenance fees are $5000 a year that would mean something like $150- invested at 3%

 

[BocaBoy]

Unless your timeshares are worth over a million dollars, I wouldn't even go through all that trouble. Just assign ownership to your children via a simple call to Marriott, pay a nominal transaction fee, and your done.

Ownership must be transferred with a new deed. When I transferred a week to one of our children three years ago I called Marriott and they told me I would have to work directly with a trust company or an attorney to get the deed transferred. Marriott would not do that for me. Once that was accomplished, then a simple letter to Marriott with a copy of the recorded deed showing the transfer was required to get the ownership changed on Marriott's records. The transfer fee to Marriott was $25, but that was only for changing Marriott's records.

The same process was required a year or so later when I took my name off a deed that I held jointly with another relative.

 

[Cobra1950]

Thanks for your input folks, will review all of them:whoopie:

 

[NJN2Mom]

Foresight

What does the TUG group have on thoughts as to what kind of inheritance trust would be best to set up so my wife and I can pass both legacy and DC points to our two children so that they can share ownership and pay MFs in some organized fashion? Our thought is to pass this to them before we die to let them pick up costs as we are ending our travelling days--they both enjoy using them but we do not want to break up weeks into individual pieces.
Also, my understanding from Marriott originally (12 years ago) was that any legacy weeks pass to heirs intact including any Marriot Rewards points (not DC) and in reading other postings on TUG any DC points pass directly to heirs.
I am sure at least a few Tuggers have had to go down this path

Your children will thank you for your foresight. My in-laws did not think to add names to the TS deeds and we had to go through probate both in Ohio and in Florida. The Marriott Rewards points were a little trickier. Enjoy them!

 

[larryallen]

I am a California estate lawyer and deal with this a lot (of course every state is different so talk to someone in your home state). Set up a revocable trust which presumably you have, or should have, anyway. Get your timeshares transferred into your trust via deeds which is what everybody should do who has timeshares and a trust. Then, set up your trust in a continuing trust fashion which is advisable for creating creditor protection for your kids. If the timeshares are that important and valuable then you could keep a portion of the trust, the timeshares, as a continuing pot trust similar to a partnership. This is all simple stuff. Good luck.

 

[FractionalTraveler]

Ownership must be transferred with a new deed. When I transferred a week to one of our children three years ago I called Marriott and they told me I would have to work directly with a trust company or an attorney to get the deed transferred. Marriott would not do that for me. Once that was accomplished, then a simple letter to Marriott with a copy of the recorded deed showing the transfer was required to get the ownership changed on Marriott's records. The transfer fee to Marriott was $25, but that was only for changing Marriott's records.

The same process was required a year or so later when I took my name off a deed that I held jointly with another relative.

In Florida, transfering a deed is as simple as filling out a form and getting it notarized. No third parties needed.

 

[BocaBoy]

In Florida, transfering a deed is as simple as filling out a form and getting it notarized. No third parties needed.

Of course a deed is a form, but there are many types of deeds. And of course it needs to be signed and notarized. And then it needs to be recorded. If one knows how to properly prepare and file the deed by yourself, fine. But most people do not and want an expert to do it for them. Marriott will not. One of the timeshares I transferred was in Florida and I did not want to do it myself, even though I am an attorney.

 

[winger]

... Set up a revocable trust which presumably you have, or should have, anyway. Get your timeshares transferred into your trust via deeds which is what everybody should do who has timeshares and a trust. Then, set up your trust in a continuing trust fashion which is advisable for creating creditor protection for your kids. If the timeshares are that important and valuable then you could keep a portion of the trust, the timeshares, as a continuing pot trust similar to a partnership. This is all simple stuff. Good luck.

We are in California, have setup a revocable family trust and transferred our TS deeds into the name of the trust. What does the following exactly mean?
Then, set up your trust in a continuing trust fashion

 

[rbwyman]

What about DC status?

I understand transferring ownership into trust will avoid probate - units in Hawaii, we are in Washington.

I understand funding the trust sufficiently to generate income to pay maintenance fees.

Sounds good.

Is this a resale after June 2010 making the units lose eligibility for DC?