Trust funds

[philly_phenom Member Find all posts View Profile Close philly_phenom]

What are the various "Trust Funds" & does it matter which trust fund your points are in?

I did notice that the maintenance fees vary, so it would matter a bit from that standpoint, but other than Trust Fund A, the difference seems negligeable.

My best guess is that when new units are added, an new fund is created & so points with those units on the underlying deed would be in that particular trust fund - is that correct?

Don't remember where, but I remember seeing some folks down on Trust Fund E - is there something particular about that trust fund? My recollection may be off and the complaint might have been about a small points or EOY package or something like that, but I thought it was about fund E.

Thanks to anyone w/ insight.

[Hobbitess Senior Member Find all posts View Profile Close Hobbitess]

My best guess is that when new units are added, an new fund is created & so points with those units on the underlying deed would be in that particular trust fund - is that correct?

I don't think there's a new trust fund added for each upgrade, but OTOH I have no idea why they switch from one to the other.

Don't remember where, but I remember seeing some folks down on Trust Fund E - is there something particular about that trust fund?

Trust Fund E currently penalizes people with fewer points. If I have 8000 points in Trust Fund E, I pay maintenance fees of $606.80, which plus the yearly dues works out to $0.091975/point. The yearly fees on 16000 points in Trust Fund E are $0.0645375/point, and the points get cheaper per point the higher your maintenance fee, if you see what I mean.

I believe the gap used to be bigger and apparently Bluegreen decided it needed to be moderated a bit, meaning people in Trust Fund E who were up in the Premeire range were seeing their fees rise pretty sharply. Whether that will continue to be the case nobody knows. As someone who travels with an entourage of five kids and hubby, I kind of like the idea of people paying higher maintenance fees getting a bit of a break, but if I wanted fewer points I might feel differently.

[crwisconsin Senior Member Find all posts View Profile Close crwisconsin]

What are the various "Trust Funds" & does it matter which trust fund your points are in?

My best guess is that when new units are added, an new fund is created & so points with those units on the underlying deed would be in that particular trust fund - is that correct?

Trust Funds are set up when BG decides that the current Trust Fund is not the fairest way of determining fees. Currently they are selling in Trust Fund E. It is not a function of there being a new resort.

The cynical side of me says that BG establishes a new Trust Fund as a way to generate sales. For instance, Trust Fund E does favor those who own a larger number of points (I think it's over 13,000 points but those who are concerned can search the archives). Many of us with several contracts in various Trust Funds consolidated our various contracts into one contract in Trust Fund E. However, to do that we had to buy more points from BG. It took us 5 years of maintenance fee savings to pay for those additional points. I have purchased several more resale weeks since then and have gone to great efforts to insure that each was in Trust Fund E.

Lately, BG has been tweaking the formulas for the various Trust Funds to minimize differences between the various Trust Funds (either a certain value per point, or a base amount plus a certain amount per point, or a pass through from what the HOA determines). But they never can make them equal.

Note that when you buy resale, you are in the Trust Fund that was established when that unit/week was last sold by BG. So, you could own 5 different unit/weeks in 5 different Trust Funds. That would be an expensive way of doing it.

Charles

[philly_phenom Member Find all posts View Profile Close philly_phenom]

Thanks guys!