Please help me understand future inheritance of DRI

just_looking · May 31, 2015

I'm the executor of my parents' will, as well as a beneficiary. They own 70,000 DRI points. This is the only number I know; getting $ information out of them is sensitive.

Here's what I've been able to glean:
1. Last year when they were staying at a location, they paid $ to do something to their account to "make it easier" for me and siblings to inherit. (I assume this means they bought more points and maybe put everything into "trust points"?)
2. They visit several resorts within the system, so I assume they are Club members.
3. All of their points have been purchased directly from DRI.
4. One parent told me that they pay $7k-$8k/year in fees. That seems low to me for 70k points, based on what I've seen here browsing the board. (I think they've purchased in Sedona and Las Vegas).

So my questions are:
A) Realistically, how much can I assume they are paying for all of their maintenance and Club fees?
B) If points are inherited, are they restricted like re-sale points, or are they considered purchased from DRI?
C) What else should I consider when the inheritance happens and I have to decide to disclaim or accept?

Thanks!

artringwald · May 31, 2015

just_looking said:
I'm the executor of my parents' will, as well as a beneficiary. They own 70,000 DRI points. This is the only number I know; getting $ information out of them is sensitive.

Here's what I've been able to glean:
1. Last year when they were staying at a location, they paid $ to do something to their account to "make it easier" for me and siblings to inherit. (I assume this means they bought more points and maybe put everything into "trust points"?)
2. They visit several resorts within the system, so I assume they are Club members.
3. All of their points have been purchased directly from DRI.
4. One parent told me that they pay $7k-$8k/year in fees. That seems low to me for 70k points, based on what I've seen here browsing the board. (I think they've purchased in Sedona and Las Vegas).

So my questions are:
A) Realistically, how much can I assume they are paying for all of their maintenance and Club fees?
B) If points are inherited, are they restricted like re-sale points, or are they considered purchased from DRI?
C) What else should I consider when the inheritance happens and I have to decide to disclaim or accept?

Thanks!

A) The Club dues are about $300/year. The maintenance fees depend on which collection the points are in. Hawaii collection (which includes Sedona and Las Vegas) is $0.15/point and US Collection is $0.16/point, so they must be paying over $10,000/year.
B) Inherited points are not restricted. The problem with resale points is that the Club membership does not transfer with the points. When points are inherited, the Club membership is also inherited. Without Club membership, you can only book the resorts within the collection. With Club membership you can book any of the DRI resorts in the world.
C) Are you ready to commit to a lifetime of $10K/year in fees, that will most certainly keep increasing? Points are difficult to get rid of, even if given away. Points do come with the advantage of flexible length of stays, and convenience of knowing exactly what's available when you go to book it. 70,000 points will get you 4-12 weeks of vacation at some very nice resorts, but will you be able to afford that much vacation time and travel expense?

Bill4728 · May 31, 2015

A) Realistically, how much can I assume they are paying for all of their maintenance and Club fees?

We had over 7000 pts in the DRI/ Monarch Grand collection and paid about $1000/yr

They could easily pay less than that so $7K- $8K so reasonable to me

B) If points are inherited, are they restricted like re-sale points, or are they considered purchased from DRI?

Yes that is true

C) What else should I consider when the inheritance happens and I have to decide to disclaim or accept?

You'll have to decide but if you accept they they are your and you'll have to pay the MF till you sell.

BTW DRI points sell for less than 1% of what they were bought for.

tschwa2 · May 31, 2015

Make sure they didn't add you to any deeds. If they did get that changed now. If they add you now, you may already be an owner and unravelling that later will be more difficult than doing it now.

artringwald · Jun 1, 2015

Here's another thread you may find useful:

http://www.tugbbs.com/forums/showthread.php?t=227080

just_looking · Jun 1, 2015

Thanks for the replies.

It sounds like they are probably paying about 70,000*.15 +$300...so almost $11k per year. This is not something I'd want to commit to for a lifetime. I know the points are essentially worth $0 if I wanted to dispose of them later; I've seen threads here and ebay auctions where the seller has to agree to pay fees to give it away.

PeelBoy · Jun 1, 2015

I own 10000 points, deed converted to points of the Club. My adult children are not interested in timesharing. My question is when I pass away, what are the legal obligations my kids have to deal with.

artringwald · Jun 1, 2015

PeelBoy said:
I own 10000 points, deed converted to points of the Club. My adult children are not interested in timesharing. My question is when I pass away, what are the legal obligations my kids have to deal with.

They can refuse ownership of the points. Here's a thread with more info:

http://tugbbs.com/forums/showthread.php?t=218643&highlight=inheritance

bogey21 · Jun 1, 2015

artringwald said:
They can refuse ownership of the points.

This is correct. IMO the best thing to do is tell them they have this option; specifically leave it to them in your will; and have a paragraph in your will spelling out that beneficiaries can disclaim any inheritance. None of this is absolutely necessary and is probably overkill but it is how I tend to do things.

George

bobpark56 · Jun 1, 2015

15 cents per point does not seem right for Hawaii collection

We have 10,000 Hawaii collection points, and we are members of The Club. Our maintenance fees for 2015 were $2,029.34, not the $1,800 suggested by the rule cited earlier. Are you sure you are providing current info?

artringwald · Jun 1, 2015

bobpark56 said:
We have 10,000 Hawaii collection points, and we are members of The Club. Our maintenance fees for 2015 were $2,029.34, not the $1,800 suggested by the rule cited earlier. Are you sure you are providing current info?

I was quoting from a sales listing, which may indeed be out of date.

ccwu · Aug 8, 2015

bobpark56 said:
We have 10,000 Hawaii collection points, and we are members of The Club. Our maintenance fees for 2015 were $2,029.34, not the $1,800 suggested by the rule cited earlier. Are you sure you are providing current info?

I own 54,000 points. I pay $9,232.52 (including club fees) in 2015. It is part US collection (13,000) and part of Hawaii collection (41,000). It seems to me is $0.17 per points. But I think to calculation the maintenance fees, you need to take the club fees out. So usually, the more points you own, the less cost per point since you only need to pay one club fee.

Please help me understand future inheritance of DRI

just_looking

artringwald

TUG Review Crew

Bill4728

tschwa2

TUG Review Crew: Veteran

artringwald

TUG Review Crew

just_looking

PeelBoy

artringwald

TUG Review Crew

bogey21

bobpark56

TUG Review Crew: Expert

artringwald

TUG Review Crew

ccwu