# What’s your plan to exit timeshares when you no longer can travel?



## csalter2 (May 25, 2018)

There are many on this site who have many timeshare weeks, points or both.  I’m often amazed at the quantity that some people have.

Do you intend to keep the timeshare in your family when you pass or aren’t able to travel or pass away? What is your exit plan out of your timeshares?


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## TravelTime (May 25, 2018)

Use to enjoy. Sell when we are tired of owning.


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## Panina (May 25, 2018)

csalter2 said:


> There are many on this site who have many timeshare weeks, points or both.  I’m often amazed at the quantity that some people have.
> 
> Do you intend to keep the timeshare in your family when you pass or aren’t able to travel or pass away? What is your exit plan out of your timeshares?



If someone in my family wants any they can have them but my plan is to just to find them a new home by giving most away.  Most of my portfolio will be desirable to others so it shouldn’t be too hard.  

Meanwhile I do not worry about what I will do with them, I just enjoy the fabulous vacations I experience with timesharing.


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## kds4 (May 25, 2018)

Our intent is to keep them in the family in the form of a vacation trust. This will enable us to preserve our ownership level (by not breaking up the weeks/points among individual kids). The requirement will be to fund the trust with sufficient monies to pay MFs into the future (accounting for anticipated increases versus the time value of money) as well as educating our children to maximize using them as we have learned to do (largely on TUG). 

It is possible that we could live to see the expiration of our 50 year ownership window for our timeshare weeks (and then who knows what will happen with our weeks). I wonder if DC points have the same 50 year 'life' that weeks do? ...


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## Dean (May 25, 2018)

csalter2 said:


> There are many on this site who have many timeshare weeks, points or both.  I’m often amazed at the quantity that some people have.
> 
> Do you intend to keep the timeshare in your family when you pass or aren’t able to travel or pass away? What is your exit plan out of your timeshares?


We plan to leave to our kids and may add them to the deeds even prior.  But we also plan to leave them the funds to be able to handle it.


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## aandmrun (May 25, 2018)

Our plan is to give them away to relatives who have shown an interest in them and also to educate them on the best way to plan timeshare vacations.  We enjoy all our trips because we do a lot of advance planning.  We mostly visit our locations every other year and trade the other years.


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## CalGalTraveler (May 25, 2018)

If our kids are not interested we will sell or give them away. We paid $12k and $7k for each resale but they are Hawaii oceanfront (Westin), and Vegas traders, respectively that seem to have some resale popularity. Easy come, easy go.

Our developer unit which was much more expensive will be harder to stomach because it has lost much of its value.  Will probably sell it because I don't want our kids burdened with the higher than average maintenance fees. Although it is not in an ideal location for our needs, we keep it because it offers a few perks that enhance the value of our resales in terms of lower fees and reservation priority that stretches our points.  If the developer devalues those perks, we will sell and likely replace it with another resale with a lower MF.


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## bogey21 (May 25, 2018)

A number of years ago I set a date about 3 years in the future that I would discontinue most travel.  At the same time I decided that I would not saddle my kids with my 6 Weeks and their MFs.  I then opportunistlcally to begin divesting my Weeks in an orderly fashion.  It took almost the entire 3 years to get the job done.  My recollection is that 3 were Deed Backs; 1 was sold; and 2 were given away.  During this period I either used the Weeks; rented them; or let friends use them.

George


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## klpca (May 25, 2018)

One kid has already asked for our Quarter House unit. The other two have not expressed any interest although I think the Seapointe summer week will be appealing to someone. I am sure as we get older we will shed the other properties - all were bought resale and should be easy to give away at some point without much, if any, of a financial loss. I buy and sell weeks pretty often and at the moment we have just about the right amount.


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## dougp26364 (May 25, 2018)

csalter2 said:


> There are many on this site who have many timeshare weeks, points or both.  I’m often amazed at the quantity that some people have.
> 
> Do you intend to keep the timeshare in your family when you pass or aren’t able to travel or pass away? What is your exit plan out of your timeshares?



Sell what we can. Give away weeks that have no resale value. Deed back if it’s an option. Default on MF’s if there’s no other way. 

To date we’ve given one timeshare away and we were able to deed back two of the others. The 2 marriott weeks and on Hilton week might have some resale value. The Spinnaker week will likely have to be given away or defaulted on. Our Breckenridge week may or may not have enough value to give away


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## GaryDouglas (May 25, 2018)

Our daughter will gladly take our MOC units off our hands when the time comes, until then, they are our carrot and stick approach to grandkid times at Maui....


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## CalGalTraveler (May 25, 2018)

We are in our 50s. We view our timeshares as our next stage retirement fun.  We own a second vacation home in the mountains that we used when our kids our young. Our kids lost interest in going there. So we bought timeshares to have more vacations together and started AirBnB/VRBO the vacation home last year because it sat idle.  It enables us to cover the property taxes, and write off insurance and maintenance which run about $15k a year. It also enables us to fund a capital reserve to renovate the kitchen and floors in the next few years.

Our plan is to eventually do a 1031 exchange of the vacation property for a rental that our kids or a renter can use for a few years closer to home. We then would move into the rental to downsize and sell our primary home to get the $500k capital gain exclusion, and then eventually sell the rental to capture another capital gain credit (if it still exists) to buy our true downsized retirement home.  We expect to use the timeshares because they are a lot less hassle and work than a second home.  Only problem with timeshares is that they don't allow pets whereas we can bring our dog to our rental.

Bottom line: we expect to own our timeshares for 20 - 30 years to come.  If the developers devalue such that this becomes a burden we will get out and change our plans to 1031 trade our vacation home for a low maintenance vacation condo in Hawaii or elsewhere and AirBnB that out when we are not using.


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## TravelTime (May 25, 2018)

.


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## CalGalTraveler (May 25, 2018)

@TravelTime Ours is in Tahoe as well. It is nice to have options. If the AirBnB train gets stopped by local regulations then we will likely go to plan B sooner. I just saw a segment on CNBC about vacation rentals being outlawed in key parts of Miami.

Great to know about the Four Seasons. Will look into that.

May I ask how you are able to write off your timeshares as business expenses? We prorate nights for reimbursement from our NYC HGVC maintenance fees when we visit for business, but how would you do that for Hawaii?


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## TravelTime (May 25, 2018)

CalGalTraveler said:


> @TravelTime Ours is in Tahoe as well. It is nice to have options. If the AirBnB train gets stopped by local regulations then we will likely go to plan B sooner. I just saw a segment on CNBC about vacation rentals being outlawed in key parts of Miami.
> 
> Great to know about the Four Seasons. Will look into that.
> 
> May I ask how you are able to write off your timeshares as business expenses? We prorate nights for reimbursement from our NYC HGVC maintenance fees when we visit for business, but how would you do that for Hawaii?



The portion of expenses used for business purposes only.


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## Quadmaniac (May 25, 2018)

I bought resale Hawaii weeks that are in high demand, so I don't see an issue of reselling them, probably for more than I bought them for as I lucked into a couple of great deals. For my other weeks, I bought them for next to nothing, so I can give them away for free and not feel bad about it, plus I've had great trades out of them. Even if I had to pay for a year's MF to get rid of them, I think I still came out ahead with them.


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## VacationForever (May 25, 2018)

Sell them, deedback and then abandon if all else fails.  I really do not want my estate to have to deal with the timeshares if I can help it.  My son is not going to be able to unravel and dispose of them.  I have printed out materials from all sorts of legal sites and put them together with the binder for my estate stuff, in case I go suddenly and have not had the chance to get rid of them before I die.


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## WinniWoman (May 25, 2018)

VacationForever said:


> Sell them, deedback and then abandon if all else fails.  I really do not want my estate to have to deal with the timeshares if I can help it.  My son is not going to be able to unravel and dispose of them.  I have printed out materials from all sorts of legal sites and put them together with the binder for my estate stuff, in case I go suddenly and have not had the chance to get rid of them before I die.



I have told our son that if we die suddenly, he is to go straight to an atty and tell him/her that he does not want the timeshares, since he cannot afford them. 

But we plan to use them for many years to come and then eventually give them away if we can't deed them back to the resorts.


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## jimf41 (May 25, 2018)

My three kids all want them.


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## MOXJO7282 (May 25, 2018)

I've purposely bought only high demand Marriott TSs so I knew at the very least I could give them away but realistically I'll be able to sell for some cash.


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## TXTortoise (May 26, 2018)

All mine are Maui OF and a Week 7 ski week. I have a stickie on our timeshare folder that’s says to call Syed and sell all.  If he retires I may have to put Mox’ name on there as a go-to buyer.


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## l0410z (May 26, 2018)

Even though I have always owned a pure traders, we purchased our HHI weeks because we enjoy going when we want.  We purchased two fixed weeks that are different weeks but within doors of each other so each kid (I have 2) can have/use one,   My kids have enjoyed the spoils of our ownership but are clueless of the time and effort.  When I discuss the timeshares passing on  I try to simplify it to black and white with the following...
If you are going to plan so you can use the HH weeks we own most of the time and rent it the times you can't go, keep it.  If not do not take ownership.  If I am alive when you make the decision, we will figure it out.  If I am not, do not take ownership of them. 
The Vegas week, do not take ownership of.  It is not worth the headache of learning how to use it. 

One of my sons is a lawyer.  If he can't figure out how to not take ownership then the money wasted  for the resale purchases  is nothing compare to the money wasted on his education.  Joking...kind of.


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## Bucky (May 26, 2018)

Our daughter will end up getting ours. Due to medical problems we no longer do the traveling we used to, especially outside of the US. But, years ago we drank the koolaid and listened to those that said “buy where you go”. Since Myrtle Beach is an easy 3 hr drive from home it is a perfect fit for us. We use both of our MOW weeks every year and still keep the SBP to trade (just in case). We do that because it’s MF are only $425 even after more than 12 years ownership!


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## ekeeler (May 26, 2018)

TravelTime said:


> We have a lot in common with you! We also own a mountain vacation home near Tahoe that I must say is one of the most beautiful homes I have ever experienced (and we have been in many high end homes). We have figured out how to leverage our timeshares so we can write them off as business expenses. Our annual MFs are about the same as yours. We are in our 50s like you. We are still working full time. We plan to do what you are doing to take advantage of the $500K capital gain. We like brand name timeshares because we get more space and designated views (we buy ocean views and ocean front) for a lot less than renting hotel rooms. We do not like renting on AirBNB/VRBO because we prefer owning. We may end up renting a few of our timeshares if we can’t use them but that was not the plan. BTW, Four Seasons Aviara is dog friendly. It is one of the few timeshares that is pet friendly. That is a big benefit for those of us in California who can drive with our dogs and consider our pets to be part of the family.


I would also like to look at how to leverage timeshares as a business expense.
edkeeler@comcast.net
We have several timeshares, and need to have a discussion with our two daughters as to their interest in the timeshares down the road.  As some have said, perhaps finding out if other relatives or friends have an interest would be a viable solution.


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## Anne&Jim (May 26, 2018)

TravelTime said:


> I will send you a private message.



I’d like to know also, if you don’t mind.


Sent from my iPad using Tapatalk


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## oldxr (May 26, 2018)

I am 58 and have 15 years left on my unit in Cabo.That probably will work out about right .But I see timeshares for sale on here and I would guess that some were part on an inheretance that is no longer wanted.


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## terrygee (May 26, 2018)

Default. 
It's on St Thomas.. no more use to me or value anymore.
Fortunately I don't need credit for anything anymore and don't give a hoot what happens.


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## BigRedOne (May 26, 2018)

Interesting tread, never really thought about this.  I will be retiring next year and definitely will not continue my RCI membership because it has just gotten too expensive.  I have had my TS for around 30 years and have had wonderful trades but haven’t really used my home resort in Branson much.  I plan on just going to Branson every year (only a two-hour drive) until I can't travel any more then give it away; to my kids if any of them want it.  My resort is on Lake Tanycomo where there is great trout fishing.


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## clifffaith (May 26, 2018)

Give our Diamond Hawaii Collection points to anyone who wants them, or pay DR $250 to take them back. That will happen sooner rather than later. When Cliff dies (he's 80, I'm 62) I'll have to wrestle with selling all of our 44,000 Worldmark points vs keeping a small portion for myself and selling the rest.


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## deslagle (May 26, 2018)

I just got done giving back 2 Shell Vacation Club properties that are Wyndham.  We got so tired of phone calls telling us we had to buy into Wyndham to fully use our properties with Shell.
Wyndham time share presentations have typically taken 2 & 1/2 hours to say "NO"!
I see our Raintree Vacation Club property is managed by Wyndham at two locations we have visited (Birch Bay & Miners Club).  They are taking over in time.
I have 6 properties and all are every other year.  So essentially 3 a year.
My daughter, who can financially use them and pay the maintenance fees, wants both the Hacienda Tres Rios and the Windjammer Landing Villas.  Both are all inclusive.
She has never visited the Morritts Londoner but we suspect she may want that one also.  The Londoner is a well decorated 2 bedroom with interior design by Mimi Morritts, herself.
The Raintree Vacation Club will eventually be controlled by Wyndham and can be given back (Miners Club in Park City) or sold.
I have sold and bought timeshares off redweek.com and TUG.  I can deed back my Maui and Kauai timeshares if I can not sell them.
The key is to price them below what others are charging if you really want to sell them as one ages out of timeshare travel (Via Redweek or TUG).   Better some money for our timeshares then just to
give them back. I never paid full price for any timeshare and most I got in 2008-2009 (reshuffled) when the re-sale was very cheap.
We have 8-10 years remaining for timesharing, we guess,  unless health changes.  We also realize that on fixed incomes and savings we can not incur huge airline price increases over the next 10 years and the increasing maintenance fees.   If all else fails and the resorts refuse to take them back, there is the "No Reserve" ebay auction action that can be taken.
I also am a member of Timesharing Today magazine and can sell them there.  Pricing competitively is always the way to sell them.


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## Tucsonadventurer (May 26, 2018)

My kids want ours and my sister is buying a resale week where we own so we are hoping that my sister will also leave hers to my niece and nephew and then  the cousins can vacation together as they all live in different states.


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## Oldbaba13 (May 26, 2018)

dougp26364 said:


> Sell what we can. Give away weeks that have no resale value. Deed back if it’s an option. Default on MF’s if there’s no other way.
> 
> To date we’ve given one timeshare away and we were able to deed back two of the others. The 2 marriott weeks and on Hilton week might have some resale value. The Spinnaker week will likely have to be given away or defaulted on. Our Breckenridge week may or may not have enough value to give away


We own two timeshares in Mexico and cannot utilize them much any more. Since it is almost impossible to sell, I would like to know HOW DO YOU GIVE TIMESHARE AWAY?


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## Mamianka (May 26, 2018)

We are both 68, retired from teaching in our fifties, but still teach privately and play professionally (classical musicians).  We bought a pre-build Grand Chateau like babes in the woods in 2004 - since, we mostly traded it out for Florida in the winter or several other really nice spots - no more than a dozen of the whole stable, but one visit to LV had us come home with a resale in Ft. Lauderdale, EOY. All in (with the 3 grand trading upgrade around 2000?) we are in for 19,900 plus 13,900 plus 3,000 - let's say 37,000.  With fees over the years - add maybe another 30,000 on that.  We have had a lot of nice vacations - but now wish to travel to other places and have other experiences.  Adult son(38) and DIL  - no grandkids - want no part of this.  So as stated above - we will try to sell them (buyer picks up fees) hand then back to Marriott - or just tell them we are defaulting.  Do not care about our credit rating - will not be borrowing a stick of gum before we check out.  I will ask my younger friends if we can give them a *gift* - wonder if there is a charity that can take these (doubt that . . ) but this *gift* is like giving folks a large messy Italian Mastiff that drool on everything - gee, thank for the expense and inconvenience in maintaining this!  If there was a Make A Wish, Veterans, or any other organization that would pick these up, and use them among their clients, I would gladly hand ours over - we want to have clean hand in 2 years.  Not a question of money here - we just want our freedom to do other things.  If someone finds a really god outfit that we can all just HAND our unwanted places to, and they will use it for GOOD, not profit (OK, run an honest biz if they want . . ) then fine. we just will be gone in 2021.  All exit ideas welcomed, folks.


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## VacationForever (May 26, 2018)

jimf41 said:


> We are both 68, retired from teaching in our fifties, but still teach privately and play professionally (classical musicians).  We bought a pre-build Grand Chateau like babes in the woods in 2004 - since, we mostly traded it out for Florida in the winter or several other really nice spots - no more than a dozen of the whole stable, but one visit to LV had us come home with a resale in Ft. Lauderdale, EOY. All in (with the 3 grand trading upgrade around 2000?) we are in for 19,900 plus 13,900 plus 3,000 - let's say 37,000.  With fees over the years - add maybe another 30,000 on that.  We have had a lot of nice vacations - but now wish to travel to other places and have other experiences.  Adult son(38) and DIL  - no grandkids - want no part of this.  So as stated above - we will try to sell them (buyer picks up fees) hand then back to Marriott - or just tell them we are defaulting.  Do not care about our credit rating - will not be borrowing a stick of gum before we check out.  I will ask my younger friends if we can give them a *gift* - wonder if there is a charity that can take these (doubt that . . ) but this *gift* is like giving folks a large messy Italian Mastiff that drool on everything - gee, thank for the expense and inconvenience in maintaining this!  If there was a Make A Wish, Veterans, or any other organization that would pick these up, and use them among their clients, I would gladly hand ours over - we want to have clean hand in 2 years.  Not a question of money here - we just want our freedom to do other things.  If someone finds a really god outfit that we can all just HAND our unwanted places to, and they will use it for GOOD, not profit (OK, run an honest biz if they want . . ) then fine. we just will be gone in 2021.  All exit ideas welcomed, folks.


Sounds like you own Marriott properties? Just give them a call, I believe they do take back deeds as long as there is no loan or money owing on them.


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## turkel (May 26, 2018)

Why give them to Marriott to resell? Every Marriott given away on TUG has had an immediate taker that I have seen. The Grand Chateau is platinum if a 2 bedroom you may get about 2k for it if your patient. If you just wanna wash your hands of it ask the buyer to pay closing and fees. The Ft. Lauderdale if platinum may get a few $$ as well. You could post them both on e Bay with no reserve and see what you can get. Buyer paying fees again.

All this is of course based on there being no loans.


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## stumahlin (May 26, 2018)

RE:  What’s your plan to exit timeshares when you no longer can travel?

We're selling them, albeit slowly, one by one.  When we need a week here or there, it's very easy to rent (and often less expensive than maintenance was).  And we've given our two sons, our estate planning attorney, and our trust officer detailed instructions on how to get rid of them if we end up leaving some behind.


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## Germanyboy (May 26, 2018)

We travel two or three weeks a year with our daughter her husband and our two granddaughters. We have 1.1 million Wyndham points and they are very much interested in keeping them in the family;we have already put it into a trust to go to her.  And a couple more years will start transferring her name on to the deeds.


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## stumahlin (May 26, 2018)

RE:  dougp26364 said: ↑Sell what we can. Give away weeks that have no resale value. Deed back if it’s an option. Default on MF’s if there’s no other way.  The Spinnaker week will likely have to be given away or defaulted on.

We ponied up a few grand to Spinnaker for their "vacation club."  They took back our totally worthless week in Hilton Head (we signed a quit claim deed) and the "club" can be abandoned by us or our sons anytime during the 20-year life of said "club."  We rationalized the expense for the "club" as a part of our completely-overhauled estate plan.


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## skimeup (May 26, 2018)

Interesting thread.  My understanding is that no one has to inherit anything she doesn't want.  So if I knock off and still own my ts, can't my kids just refuse to take them?  (Of course, I'll try to get rid of them if I have to stop traveling, but if the unexpected happens?)


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## Thomfam (May 26, 2018)

Anne&Jim said:


> I’d like to know also, if you don’t mind.
> 
> 
> Sent from my iPad using Tapatalk


Add me to your list . Thanks, Patti
thom500@aol.com


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## Larry M (May 26, 2018)

i have a fixed week at Edisto Island Ocean Ridge. Not Wyndham, a small independent organization with 15-20 units. I paid $1500 for the unit. Maintenance has increased every year. I've let my son's family use it for the last 5 years. The agreement expires in 2026 and my guess is that they will not get the signatures to renew the agreement. I'll take the money and run.


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## gctippett (May 26, 2018)

Anne&Jim said:


> I’d like to know also, if you don’t mind.
> 
> 
> Sent from my iPad using Tapatalk


I also would like to have some information on this topic....  as I do my own taxes and this is of high interest.


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## VacationForever (May 26, 2018)

gctippett said:


> I also would like to have some information on this topic....  as I do my own taxes and this is of high interest.


I would suggest talking to your CPA to make sure suggested business write offs will hold up in an audit.


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## Fasttr (May 26, 2018)

skimeup said:


> Interesting thread.  My understanding is that no one has to inherit anything she doesn't want.  So if I knock off and still own my ts, can't my kids just refuse to take them?  (Of course, I'll try to get rid of them if I have to stop traveling, but if the unexpected happens?)


Yes, your kids could disclaim the timeshare inheritance if they so choose to.


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## Dean (May 26, 2018)

skimeup said:


> Interesting thread.  My understanding is that no one has to inherit anything she doesn't want.  So if I knock off and still own my ts, can't my kids just refuse to take them?  (Of course, I'll try to get rid of them if I have to stop traveling, but if the unexpected happens?)


That's true but the estate is still responsible and thus it cannot clear probate.  The executor would have to dispose of them in some way or ask a judge to legally remove them from the estate.  I'm told they will often do so but generally at a year or more of trying to dispose of them.



gctippett said:


> I also would like to have some information on this topic....  as I do my own taxes and this is of high interest.


You should consult a tax CPA or lawyer but here are a few thoughts.  If you rent or offer for rent, you can't deduct as a business expense.  Otherwise if you actually use it for true business you can deduct a portion for that year based on the % of business vs personal use.  I'm told that "rental" to family doesn't count as a rental legally but who knows.  I think writing off the traditional trip to check on the timeshare like many condo owners do is about 99% impossible to do.  And the 15 days free rental as a condo is almost impossible to qualify for but theoretically possible in very limited circumstances.  I also believe that timeshare deductions, even if one technically qualifies, are going to increase the risk of an audit.  Other than real estate taxes, I'd tread lightly.


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## tugboat89 (May 26, 2018)

csalter2 said:


> There are many on this site who have many timeshare weeks, points or both.  I’m often amazed at the quantity that some people have.
> 
> Do you intend to keep the timeshare in your family when you pass or aren’t able to travel or pass away? What is your exit plan out of your timeshares?


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## tugboat89 (May 26, 2018)

Fasttr said:


> Yes, your kids could disclaim the timeshare inheritance if they so choose to.


We have 19 weeks and have owned them for about 25 years.  We have been done over 200 exchanges with RCI (who we don't really like) others with several other exchange companies, (our favorite is Platinum Interchange - but small inventory) we decided to buy in at a deeded fractional share (2 units 1/6 interest) on the coast of Washington State - Surfcrest Resort.  17 of our weeks are there.  We still have low fees.  About $350 per week.  We also have gone to our resort some.  We decided to buy in instead of buying long term care insurance.  So fare art has worked out good for us.  Much for fun!!!  We give weeks to our local charities for their annual auction even though not tax deductible.  Last auction brought $1,200 for a week that i booked in Arizona.  With exchange fees it cost us out of pocket about$500.  Great for us and great for the charity.  We also give weeks to our best friends.  Very satisfying!!!  Our three daughters and our grandson use the weeks as well.  We will leave them in a trust for the use of the kids and we will put enough assets in the trust to fund the maintenance fees.  We have enjoyed the heck out of it!!  We would never have done as much travel as we have done.  The pressure of the weeks going unused has force us to travel more.  I will be 80 very soon and  we are slowing down but still happy about being a timeshare owner.  Tugboat 89


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## Caligirlfrtx (May 26, 2018)

TravelTime said:


> We have a lot in common with you! We also own a mountain vacation home near Tahoe that I must say is one of the most beautiful homes I have ever experienced (and we have been in many high end homes). We have figured out how to leverage our timeshares so we can write them off as business expenses. Our annual MFs are about the same as yours. We are in our 50s like you. We are still working full time. We plan to do what you are doing to take advantage of the $500K capital gain. We like brand name timeshares because we get more space and designated views (we buy ocean views and ocean front) for a lot less than renting hotel rooms. We do not like renting on AirBNB/VRBO because we prefer owning. We may end up renting a few of our timeshares if we can’t use them but that was not the plan. BTW, Four Seasons Aviara is dog friendly. It is one of the few timeshares that is pet friendly. That is a big benefit for those of us in California who can drive with our dogs and consider our pets to be part of the family.


I need to learn how to write our Timeshares off as business expense. Any tips?


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## VacationForever (May 26, 2018)

Caligirlfrtx said:


> I need to learn how to write our Timeshares off as business expense. Any tips?


Ask your CPA.  I highly suspect the answer is no and it won't stand up in an audit if you do so.


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## Caligirlfrtx (May 26, 2018)

VacationForever said:


> Ask your CPA.  I highly suspect the answer is no and it won't stand up in an audit if you do so.


I was considering sending my employees on vacation using my units. I will speak with my accountant.


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## VacationForever (May 26, 2018)

Caligirlfrtx said:


> I was considering sending my employees on vacation using my units. I will speak with my accountant.


I believe the issue is that if you post MF as a business expense, your employees may have to file the equivalence as income in kind.  We did that for years, in that we gave timeshare stays to our employees but we did not declare as expenses so that our employees need not declare as income in kind.

https://www.nolo.com/legal-encyclopedia/question-deduct-employee-gift-cost-28066.html


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## TravelTime (May 27, 2018)

VacationForever said:


> Ask your CPA.  I highly suspect the answer is no and it won't stand up in an audit if you do so.



Only if the expenses are business related.


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## Dean (May 27, 2018)

VacationForever said:


> Ask your CPA.  I highly suspect the answer is no and it won't stand up in an audit if you do so.


Agreed, I'd ask.  But aware that many tax preparer's, lawyer's and CPA's are not very good with timeshares because they often follow different rules than condo's.  My understanding as a lay person in timeshares is that you have 2 options.  You can call it compensation to them and include it in their income or you can make the timeshare a business entity.

As I understand it, if you use the income method the employee gets the fair market value as income and you get direct expenses applicable to the portion they used as a deduction which means they are normally going to get a much larger spike in their income than you can write off.  You can't then deduct the amount included in their income on the business side like you would the cash income.  You would then deduce the direct yearly expenses that are allocated to the % that they used and you could potentially depreciate that portion but you'd have to file those forms and then if you sold the timeshare, you'd have to include the depreciation as a lower basis upon selling which might or might not cause it to be counted as income.  For example (and short version) if you own a beach condo and only rent it out and you depreciation the entire cost over time then later sold it, the entire sale price would be counted as capital gains.

If one converts the timeshare to an employee benefit, then the "employees" would have to use it more than 50% of the time compared to family, friends, owners and "highly compensated".  Highly compensated would be those that are in the top 10% of the earners at the company plus anyone making over a certain amount as defined by the IRS if it was higher than 10%.  A few years ago it was anyone who made over $115K.  Basically you'd have to own it for the employees to use most of the time.


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## Theiggy (May 27, 2018)

terrygee said:


> Default.
> It's on St Thomas.. no more use to me or value anymore.
> Fortunately I don't need credit for anything anymore and don't give a hoot what happens.



Why don’t you give it away on TUG?


Sent from my iPhone using Tapatalk


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## controller1 (May 27, 2018)

tugboat89 said:


> . . .
> We give weeks to our local charities for their annual auction even though not tax deductible.  Last auction brought $1,200 for a week that i booked in Arizona.  With exchange fees it cost us out of pocket about$500.
> . . .



If you were out of pocket $500 and you believe it is not tax deductible, you need to find another tax accountant.  If you have enough other expenditures to itemize then it is tax deductible.


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## CalGalTraveler (May 27, 2018)

Caligirlfrtx said:


> I was considering sending my employees on vacation using my units. I will speak with my accountant.



Some business owners have purchased HGVC NYC properties to use as a base for business visits for themselves and their employees to the city.  However these are documented business trips with a prorata share of MF applied. Not sure about using them as an employee incentive.


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## Fasttr (May 27, 2018)

controller1 said:


> If you were out of pocket $500 and you believe it is not tax deductible, you need to find another tax accountant.  If you have enough other expenditures to itemize then it is tax deductible.


You should re-read the tax law... or do a web search....

Check out Donating the Use of a Week paragraph here as an example....
https://www.redweek.com/resources/articles/donating-timeshare-to-charity


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## Dean (May 27, 2018)

controller1 said:


> If you were out of pocket $500 and you believe it is not tax deductible, you need to find another tax accountant.  If you have enough other expenditures to itemize then it is tax deductible.


Donation of use of a condo or timeshare is not deductible in any form.  You can rent it and donate the proceeds and you'd be able to take the deduction.


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## bagdiver (May 27, 2018)

Sometime recently, there was a thread about what information to leave to survivors if timeshares were part of the estate. That information would be of use with this topic but I am unable to find the discussion. Any help would be appreciated. 
Thanks!


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## silentg (May 27, 2018)

We hope to use our timeshares for a long time. Retirement is close for DH and I already am retired.
We have 5 timeshares in 5 different places. Still in RCI and am pleased with the exchanges lately.
Also do exchanges thru TUG. We want to visit all of our timeshares next year if possible. As we age and find it difficult to use our timeshares we will sell or give them away. We are giving away one already.
Then we will have an even 4.
Silentg


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## SeaDoc (May 27, 2018)

When the time comes I’ll likely turn all my weeks into Marriott reward points since I have Starwood too, and have some fun hotel getaways.  Once done there, get Marriott to buy the platinum weeks I have, then voila, all gone...


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## GregT (May 28, 2018)

When I don’t need my timeshares anymore, I’m going to give them to @dioxide45


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## TXTortoise (May 28, 2018)

I do remember him complaining that his MFs were too low and I believe your portfolio will help mitigate that. 

As long as he doesn’t show them on ROFR.net as zero cost.


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## Quilter (May 28, 2018)

I’m wondering if the properties will last as long as I do.  

We arrived at OP yesterday to find our newly refurbished room smelling musty and moldy.  

OP has been hit many times by hurricanes.  This season began early with Alberto.

Check in was difficult.   Our room was ready when we arrived.  It was an II exchange and the reservation actually began on Friday.   It was on the south side of Cobia.  My friends got in the room first and detected a musty moldy sensation.  One went to the corner in the living room and found the carpet soaked 2-3 ft. square area.   It could have been wet for a long time because 2 things gave us the opinion housekeeping hadn’t been looking in that corner..  The first was when we moved the chair there were cracker crumbs still on the rug and the second was  the puddle of water in the sill by the glass was dirty so it hadn’t been dusted for a while.  

We called AYS and waited before we emptied suitcases. Two separate housekeepers were sent up with the note they needed to wipe a spill or mop a floor.  Not at all what I had told AYS.  After several more calls an engineer came up and said they had recently had all the windows worked on after last years hurricane but this one was still broken..  It could have been leaking for the past few days or weeks from the recent storms.

They sent someone up with and extractor but it wasn’t a matter of simply caulking the window.  The engineer said it was leaking from the outside. With the forecast for daily storms there was the possibility of the carpet getting wet on a daily basis.  

I got a couple calls from rooms control to discuss staying or moving.  As he droned on about the complications of moving us he had to insert his editorial about the buildings being 20 years old.

2 hours after arrival we were settled in a nice dry smelling room in Sailfish.  

Today has been lovely so far.  We got a nice walk and now my gang is down by the pool.  Storm expected at 2.   It will hit the opposite side of the building.


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## GetawaysRus (May 28, 2018)

Quilter said:


> Storm expected at 2.   It will hit the opposite side of the building.



The definition of optimism.


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## Quilter (May 28, 2018)

GetawaysRus said:


> The definition of optimism.



Hahaha!  It passed by on the west.  No rain at all.  We stayed at the pool and walked to dinner.  

Many of the stays we have at OP we look forward to a bit of rain hitting the windows because it clears off the salt spray.   The wet rug changed my perspective for a while.


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## hangloose (May 28, 2018)

Quilter said:


> Hahaha!  It passed by on the west.  No rain at all.  We stayed at the pool and walked to dinner.
> 
> Many of the stays we have at OP we look forward to a bit of rain hitting the windows because it clears off the salt spray.   The wet rug changed my perspective for a while.



At Ocean Pointe this week also. Checked in on Sunday.  Forecast shows an entire week of rain......but....Sunday night we had a nice swim, s’mores, etc  in the evening after check-in....and weather on Monday (Memorial Day in the US) was fantastic.  Windy, no rain, warm temps, little overcast, and just enough sun.   Wine & cheese welcome in the PM. Great day!

Rain still forecasted the rest of the week.  I’m betting against rain.... .


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## Quilter (May 29, 2018)

I’m now looking forward to enough decent weather for an enjoyable trip.  We got to walk the bridge (Mt. Blue Heron) and sit outside at DQ.  It was also a beautiful moonlit walk on the inlet.


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## controller1 (May 30, 2018)

Fasttr said:


> You should re-read the tax law... or do a web search....
> 
> Check out Donating the Use of a Week paragraph here as an example....
> https://www.redweek.com/resources/articles/donating-timeshare-to-charity





Dean said:


> Donation of use of a condo or timeshare is not deductible in any form.  You can rent it and donate the proceeds and you'd be able to take the deduction.



All of the IRS guidance pertains to deducting the fair market value of the property and disallowing it because of the partial interest.  I do not dispute that and agree that is not deductible.

I specifically addressed the *$500 out of pocket expense in making the reservation*.  There are several scenarios to be able to legally deduct that amount.  I've made similar deductions and argued same once with the IRS and they agree.  I'll leave it at that.


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## TravelTime (Jun 1, 2018)

bagdiver said:


> Sometime recently, there was a thread about what information to leave to survivors if timeshares were part of the estate. That information would be of use with this topic but I am unable to find the discussion. Any help would be appreciated.
> Thanks!



This month, there was a great article in Timesharing Today about what to do with estate planning of timeshares and all the ins and outs if someone dies and leaves it to heirs and the risks of that. The article said that with weeks, that is deeded real estate so it would be treated differently than points in a vacation club. I’d recommend anyone interested in this topic to look up that article. I get a magazine subscription on paper so not sure if ther article is available online.


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## GaryDouglas (Jun 2, 2018)

TravelTime said:


> This month, there was a great article in Timesharing Today about what to do with estate planning of timeshares and all the ins and outs if someone dies and leaves it to heirs and the risks of that. The article said that with weeks, that is deeded real estate so it would be treated differently than points in a vacation club. I’d recommend anyone interested in this topic to look up that article. I get a magazine subscription on paper so not sure if ther articler is available online.




Looks like a trip to the library is in order...   http://news.hospitality-1st.com/TSTodayJoin-050318.html
Do they still have libraries?


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## T_R_Oglodyte (Jun 2, 2018)

Our Raintree membership is a RTU on an exit program that will reach it's end within about five years. 

Our Winners Circle has resale value and will be easily disposed of, via sale or gift. 

Our Diamond ownerships will be sold or given away; if that isn't successful, we will deed back.


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## bogey21 (Jun 2, 2018)

silentg said:


> We have 5 timeshares in 5 different places....We want to visit all of our timeshares next year if possible. As we age and find it difficult to use our timeshares we will sell or give them away. We are giving away one already.



Pretty much what I did with my 6 Weeks in 6 different place.  I used them on a declining basis and disposed of them one at a time in a very orderly manner.  It took me about 3 years before I was rid of them all.

George


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## nadines08 (Jun 26, 2018)

I'm just starting to put together a plan for my timeshares. I have Starwood and Wyndham. Some of my points are deeded weeks and I am polling my relatives to see whether they want to participate in a family trust and make use of the good things I have. They can use them or rent them out to recoup MFs. But, it's my understanding that deeded weeks are a different animal so I may have to give those away separately if family members don't want my other timeshares. If I don't put the rest of the undeeded points into my living trust document (don't pour-over those) the heirs can refuse to accept them. I can use all the advice anyone wants to offer! (I do have that article in the Timesharing Today and will see if I can make good use of that.)


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## CalGalTraveler (Jun 27, 2018)

Our timeshares are held in a joint revocable living trust. Will either my spouse (upon my death) or our children (when both of us die) have the option to reject one or all of timeshares upon death with no obligation? What about the trust? Will there be an estate obligation?


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## icydog (Jun 27, 2018)

I just gave my son 400 DVC points.  That’s a hellava lot of points.  He’s the only one in the family who could afford the maintence fees.  

I’m getting to the point that  I’ll have to consider divesting some/most of my Timeshares.  The trouble being if I get rid of my enrolled Marriott’s I’ll lose my Chairman’s Club Status. If I get rid of the other resale Marriott’s,  there go my trading options. I have some very good traders—Willow Ridge comes to mind, I also have a clunker in my white Desert Springs week.  I have a Platinum NCV that I always rent out.  That one is at least making some money for me! 


In truth, I feel like my timeshare career is starting to sundown.  I spend too much time, and I give too much away to family and friends, to garner even a modicum of monetary value. I’m not kidding. This may be the end of an era. I bought my first DVC points in 1992 sight unseen. I was lucky that another company didn’t grab my attention first. Now 26+ years later I’m getting ready to call it a day.


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## nadines08 (Jun 30, 2018)

CalGalTraveler said:


> Our timeshares are held in a joint revocable living trust. Will either my spouse (upon my death) or our children (when both of us die) have the option to reject one or all of timeshares upon death with no obligation? What about the trust? Will there be an estate obligation?


I was told, but not by an expert, that I shouldn't put the timeshares into my living trust if the heirs don't want them. That way they don't HAVE to accept them and it doesn't goof up the other things in the trust. I'm going to be talking to a real legal person in the next month to find out how to do this properly.


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## Steve Fatula (Jun 30, 2018)

icydog said:


> The trouble being if I get rid of my enrolled Marriott’s I’ll lose my Chairman’s Club Status.



Can't you tolerate losing chairman status? It's virtually identical to Presidential. So, I would think you might be able to divest yourself of one timeshare, go down to Presidential, but really lose nothing?


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