New filings have confirmed plans for a trust-based ownership product for Disney Vacation Club, kicking off with The Cabins at Disney’s Fort Wilderness Resort.
Confirmation of Trust-Based Ownership
According to a filing dated December 15th, 2023, Disney Vacation Development is set to introduce a trust-based DVC ownership product beginning with the Fort Wilderness Cabins. This new approach marks a shift from the current deeded ownership interest, suggesting a strategic pivot towards a more flexible and scalable model for future developments.
Palmetto Trust Association in Focus
The documents released include Amended and Restated Articles of Incorporation related to the Palmetto Trust Association Inc. This recent formation is believed to be a precursor to the new trust-based ownership structure. For those who aren’t familiar with this new venture, we previously discussed it here.
The Cabins at Disney’s Fort Wilderness Resort as the Initial Focus
At first glance, the plan seems to be to declare the entirety of The Cabins at Disney’s Fort Wilderness Resort to the trust. This move could indicate that only new future DVC properties will include a trust-based ownership interest, excluding existing resorts such as Riviera, Aulani, Disneyland Hotel, and others. However, DVC could potentially amend the plan documents for these resorts and move undeclared inventory to the trust at a later time.
Multiple Trust Use Plans
The new releases by DVC confirm that there can be more than one Trust Use Plan within the trust, each governed by its own rules and regulations. This could mean that properties within the trust are also part of a vacation ownership scheme, where people own or have the right to use a variety of properties for vacations, which are all part of the larger “trust”.
The Implications of the New Trust Structure
Until other resorts are added to the trust, the true intent of this plan may not be fully understood. As long as only The Cabins at Disney’s Fort Wilderness Resort are managed and sold by the trust, most owners will not notice anything out of the ordinary.
The most notable difference is that nstead of buying an interest in a specific resort, DVC purchases will now take the form of purchasing an ownership interest in a timeshare resort use plan. Deeds issued will declare that buyers have a “Right to Use” the accommodations declared into the trust and part of the plan. Disney refers to interest in “The Cabins Resort Use Plan” multiple times in the recent filings.
A Seamless Transition?
From a surface level, much will go unchanged, with only The Cabins at Disney’s Fort Wilderness Resort set up in this format at present. DISboards user Brian Noble suggests that the main change may be to shift from deeded leaseholds to use plans while leaving the “mechanics” of DVC exactly the same. This could mean that the day-to-day DVC experience remains largely the same for users. One notable advantage noted by Noble to a use plan is that it could be much easier to terminate the account of an owner who is not paying Maintenance Fees (MFs), as no foreclosure is required. This and other tax implications could be the true intent of this new structure, and maybe we’ve been reading the tea leaves a bit too hard.
Reading Between the Lines
While we can make some educated guesses about the overarching intent of the Palmetto Trust and its role in the future of Disney Vacation Club, it’s still too early to definitively determine what that intent might be. As more resorts are added to the trust and as the new system evolves, the picture will likely become clearer. Until then, we’ll continue to read between the lines and keep a close eye on the developments. Stay tuned for more updates on this exciting new chapter for DVC!
So does this mean direct owners will be able to use their points and stay at the cabins or is it not the same association?
Limited info to go on for now but I think direct owners should continue to have access to the same 7 Month booking benefits at all resorts.
In the past you and Amy have expressed interest in the cabins, has this announcement changed that at all? Or maybe the limit of two dogs per cabin does. LOL?
Sadly it’s the dog news that has us now no longer interested. Our three boys are wonderful and lower maintenance than one dog in some circumstances. 🐶🐶🐶
Any chance this is disney looking to the future when contracts begin to expire….since the initial extension offered to OKW years ago, there’s been little to no update on what cones next….
My gut says doubtful – They might have a 5-10 year plan but none of the executives need to worry about that at this time. The primary goal year to year is to meet budget expectations and exceed sales goals.
I downloaded your podcast about big changes for a trip to Aulani so as we headed out over the pacific I listened to it. Interesting, today we were told they have a gift for us in the DVC sales center, after some small talk with the guy and just mentioning the cabins, he said they are going to start training on them in a couple of weeks. That’s when I asked him about the trust and what he knew about how it was going to function. You could see his face change as he said he has not heard anything about a trust. I mentioned that it was strange how it was announced after the annual condo meeting, and how some think that lumping several resorts i to one bucket could cause issues with the 11 month booking window. Again he said I don’t know but I am going to ask our manager. I left it at that, later this week I might ask one of the sales people that are scattered around the resort trying to sell. Just want to see what response I get. We are here for 10 more days in a one bedroom, it’s nice to be out of cold NY for a while, but the 11 hour flight from Boston is a bit long.
As a Florida Not for Profit company, common assets of the trust like clubhouses, pools, and recreational lands are not taxed (like in an HOA or Condo). That would be huge savings for an operation like DVC. The individual cabins and a notional amount of land around each would be taxable.