If you’re the beneficiary of a timeshare, you’re lucky to have a vacation property that can be passed down to you. So how does inheriting a timeshare work?
When someone includes a timeshare in their will or trust, the property management company will go to the beneficiary upon an owner’s death. The beneficiary has two options: either sell the timeshare back to the resort and get a payout or transfer ownership of the timeshare into their name and keep it.
Can I Use My Inheritance Timeshare for Vacations?
Timeshares are a fantastic way to ensure that you go on a vacation every year. Many timeshare owners take trips alone, with their children, or with a group of friends.
Timeshares let you split the cost of a property with other people and use it for a certain number of weeks out of the year. Instead of paying total price for an expensive hotel room, you can split the cost with other people who want to stay in the same place and get a space for much less. You also get access to all the amenities, discounts, and even free flights.
The best part about timeshares is that they are located in beautiful vacation spots like Orlando, Las Vegas, Hawaii, and Mexico—all amazing places to travel.
Should I Pass On My Timeshare Inheritance To My Children?
Timeshare inheritance can be a great way to enjoy a vacation property without shouldering the entire financial burden of owning one. But what happens when you pass away? Should you leave your timeshare ownership to your children?
The answer is, it depends on your children. If you are concerned about leaving your loved ones with more financial responsibilities, then it’s best not to leave your timeshare to them.
Before making this decision, consider how much value your timeshare has and how many annual maintenance fees would be required from your family members.
If you still want to leave your timeshare to your children, you must meet with an estate plan attorney who can help you draft a will so that everything is clearly stated.
How to Handle Timeshares When Estate Planning
If you’re planning to include your timeshare in your estate plan, it’s wise to consider how you’ll make sure your beneficiary will want and be able to accept your property.
The first step is to consider whether the person really wants the timeshare. Talk with them about it, and make sure they realize what they agree to.
Remember that they may not be able to afford the timeshare deed, annual maintenance fee, and dues. It might be best to leave them cash instead to use it toward a vacation if they choose that option over keeping a timeshare.
Once you’ve established a timeshare agreement with your beneficiary, work with an attorney specializing in real estate law and has detailed knowledge of timeshares. They can ensure that all of your wishes regarding the property are clearly stated in writing and will be carried out after you pass away. Depending on what kind of property you own, there may be different laws and rules regulating how it must be transferred after death.
I’ve Inherited A Timeshare, Now What?
If you have recently inherited a timeshare, here are a few of the things you need to know:
1. Read the agreement
When you inherit a timeshare, carefully review the timeshare agreements. The terms and conditions of your timeshare inheritance can vary depending on the property. And you must know what you’re getting into before you take the timeshare contract.
If the agreement includes an option to cancel, avoid penalties or legal recourse for late fees or breach of the agreement. You may also want to legally refuse by getting a qualified attorney before signing anything.
2. Talk with your developer
If you are planning to purchase a timeshare, you must consult with a lawyer with knowledge of timeshare contracts and inheritance laws prior to buying. It is important to review the estate documentation that governs the timeshare and other documents related to the arrangement, such as occupancy agreements. These documents will outline the relationship between you and the timeshare resort developer. They may also describe how ownership can be transferred or inherited in the event of the original owner or parent’s death.
3. Don’t Stop Paying
Even if you’re not planning on using it, you have legal obligation to make payments on the property. The resort’s finances are as vulnerable as its guests, and late or missing payments can hugely affect their ability to run smoothly.
If the original owner died and left you their timeshare, you will have to take on all of the costs and legal obligations attached to it. This can include maintenance fees, property taxes, special assessments, and interest charges. There may also be unpaid bills that you are responsible for.
4. Don’t Wait
As you probably already know, the probate process can be long and complicated. But in reality, it’s best to stop waiting and start taking action as soon as possible.
Suppose you’ve been wondering how to avoid probate in California, Arizona, Texas, or other states. In that case, the answer is simple: make sure that you act quickly to put your plan into motion by utilizing the services of a trusted advisor who will help you secure your legacy.
5. Consult with your heirs
Inheriting a timeshare is a huge responsibility, and you don’t have to do it alone. If you inherit a timeshare with any other heirs, it’s essential to speak with them to clarify your responsibilities, rights, and expectations. Even if you’re the only heir, you can still consult with experienced professionals who will be more than happy to advise you on your best course of action.
How to Legally Refuse a Timeshare Inheritance?
File a disclaimer document
If you decide to decline the inheritance, you’ll need to file a disclaimer of interest for an unwanted timeshare to whoever is overseeing the estate.
If your parents are going through a probate process, you will need to file a disclaimer of interest with a probate court handling it. This legal document officially states your intentions not to take any inheritance from the estate.
You will have nine months to file a disclaimer of interest in most cases. If you don’t file within nine months, you may forfeit your right to disclaim.
If you legally disclaim the property, your share of the inheritance will go to the next of kin or a designated beneficiary, who would have been next in line if you had not been alive or chosen to inherit.
Notify the resort
In the event of owner’s death, their legal representative is responsible to notify the management of the resort. The legal representative must do this as soon as possible.
The notification should be in writing and sent by certified mail. It should include:
- A copy of the death certificate.
- Some form of identification for the deceased (social security number, residence address before death).
- A statement verifying that you are the legal representative.
- A copy of your valid identification.
- If you are not the next of kin, you need to include proof that you are a designated beneficiary or creditor (for example, a will or insurance policy).
Avoid Making Payments from Your Account
Don’t make any payments on the property from your own account. If you are responsible for maintenance fees, the timeshare resort will probably send them to your house and ask for payment. Send these invoices back unopened (or open them and write “Return to Sender”). This puts responsibility for the debt back on the resort, so they can take the property back if they feel like it.
How to Get Rid of An Inherited Timeshare?
Ask for a Deedback Program
If you have a timeshare that you no longer want, you can try to sell it. The first option is to contact your resort and ask about whether or not they have a deedback program. The deedback program is designed to limit buyer’s time to sell their timeshare. In most cases, the deedback program will allow for a five-year waiting period before the owner can sell their timeshare.
This allows enough time for the new owner to become familiar with his or her property and make any necessary changes to improve its value.
Rent your timeshare property
Renting your timeshare property is a great way to turn your unused vacation time into extra income. When renting your timeshare property, you can choose how much or how little to use and rent it out any time it’s not in use.