# What to do about timeshares when setting up a Revocable Living Trust



## Carolyn (Oct 30, 2012)

I was forewarned today that owning 9 different timeshares all over the world may present a problem when adding them as assets to our Trust ( yet to be set up yet) How do other TUGgers handle this? Some are on leases, some are in Points and others are deeded.  Apparently all paperwork has to be changed. Any advice? Thanks.


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## Karen G (Oct 30, 2012)

When we set up our trust about five years ago we transferred ownership of all our timeshares to our trust. There were fees involved according to each resort's policy on transferring ownership.  On the deeded properties we were able to change the deeds ourselves by retyping them and just changing the names of the owners. We then filed them with the counties where the timeshares were located and then notified the resorts by sending them copies of the filed deeds. I don't believe any of those particular resorts charged a fee for changing the names.

On the Mexican timeshare, which was RTU, we had to pay a fee to the resort to change the names on their records. On the South African ones the resorts did the changes for small fees. We've since sold all of them except for the Mexican one.


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## RichardL (Oct 31, 2012)

*Living Trust*

As an estate planner and probate attorney in California, you should start if you are a California resident to be sure to list all TS on a schedule attached to your living trust.  You should consult an estate planner in the state where you live.  Karen G's advise is always safe.  In what form of title are your TS now recorded?  For example, Husband and Wife, in joint tenancy with right of survival?  That would be a standard method especially if you did not have a Family or Living Trust.  In such an instance on the death of one spouse the TS instantly is held soley by the survivor. 

Again, I would follow Karen G's advise whether you personally type up the transfer deeds or have an attorney do it.  In my neighbor the attorney flat charge for a living trust involves his office preparing all deeds whether one for a home, or several.  You could do it all yourself with assistance for example through LegalZoom.  I recommend the assistance of a good estate planner because death is coming, and that estate planner you work with now becomes more important when it does come and you really feel lost.


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## zcrider (Oct 31, 2012)

*Change it or leave it alone*

We had two timeshares when we set up our trust.  I chose to not change the names as mentioned above b/c the fees from our two ownerships were going to be too high to justify it.  Figured my family would rather sell them anyway.
   We have already sold one timeshare and bought a different one that we bought under our trust name.  Second one still remains out of the trust.


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## ronparise (Oct 31, 2012)

You are creating the trust and putting assets in it for a reason or reasons.

The answer to your question has to depend on reason you are setting up a trust in the first place.

your reasons might be 

• Minimize estate taxes
• Shield assets from potential creditors
• Avoid the expense and delay of probating your will
Preserve assets for your children until they are grown (in case you should die while they are still minors)
• Create a pool of investments that can be managed by professional money managers
• Set up a fund for your own support in the event of incapacity
• Shift part of your income tax burden to beneficiaries in lower tax brackets


(I stole that list from this website  http://www.gilbert-krupin.com/


The question I have is why put the timeshares in the trust at all? or put another way, if you had no other assets would you create the trust just for the timeshares?  If not I would leave them out of the trust and deal with them separately 

When I think of my timeshares and my death at the same time,  my concern is making sure that my heirs that want a timeshare get what they want and those that dont want a timeshares dont. Since I dont know anyone except the people Ive met here on TUG that actually want timeshares my goal has been to isolate my timeshares from the rest of my assets (such as they are) and my plan (not endorsed by any attorney) is a simple one. Any asset of value is held in trust or as joint tenancy with rights of survivorship.  Debt and assets of no value, remain in my name alone and become the problem of my estate and my creditors to deal with.


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## VacationForever (Oct 31, 2012)

I believe OP's issue in having international (timeshare) properties is that (most?) countries outside of the USA do not have the legal concept of a revocable trust.  I have assets overseas and could not place assets in a trust.  I need to have that portion handled through my will.  

But it is a good question on what to do with timeshares.  My timeshares are here in the US and my trust attorney said to simply have multiple names on them so that joint tenancy will cover how they are passed on.  They are not of any significant value anyway.


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## SOS8260456 (Oct 31, 2012)

Sad to say, my husband and I have not given much thought to estate planning.  And, yes, I know how bad that is.  Our timeshares are not in a trust.  However, we have considered it over the years and at some point will need to deal with it and the whole estate planning stuff.  Some of the reasons that we considered it (gleaned from here, OY and the Farfield Yahoo group) are:  1. to keep our Wyndham Plat status intact for all 3 children rather than each child ending up just short of VIP and 2.  we were told that the trust would avoid having to probate each timeshare in each state where the timeshares were located.

We are in our mid 40's.  I know that anything can happen at any time, so regardless of age we should get some kind of plan in place and one that can be easily changed as circumstances change.  Since we don't really have any family/friends that we felt we could trust and/or burden with our stuff, we have sort of been holding off until our oldest two children turned 18.  The major problem would be if something happened to both of us at the same time, then everything would be a major mess for someone to deal with.

Anyway, I just wanted to post about the reasons we were considering a trust for our timeshares based on stuff we read on the 3 forums that I mentioned above.


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## csxjohn (Oct 31, 2012)

SOS8260456 said:


> ...We are in our mid 40's.  I know that anything can happen at any time, so regardless of age we should get some kind of plan in place and one that can be easily changed as circumstances change....  The major problem would be if something happened to both of us at the same time, then everything would be a major mess for someone to deal with...



Lisa, the next breath you take may be your last and since you know something should be done, do it.

You want to preserve the Plat. status so I would take steps to make that happens.

A lot of us have timeshares that our kids won't want so we're in a different situation.


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## persia (Oct 31, 2012)

Just be sure your kids know that an inheritance is voluntary and they can just refuse the timeshares and leave them in the estate unclaimed.



csxjohn said:


> Lisa, the next breath you take may be your last and since you know something should be done, do it.
> 
> You want to preserve the Plat. status so I would take steps to make that happens.
> 
> A lot of us have timeshares that our kids won't want so we're in a different situation.


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## csxjohn (Oct 31, 2012)

persia said:


> Just be sure your kids know that an inheritance is voluntary and they can just refuse the timeshares and leave them in the estate unclaimed.



Thank you, yes they know.  I spread that info also but somehow missed putting it in here.

There's a thread going on right now where someone is the executrix and is dealing with this.  I hope she keeps us updated.

http://www.tugbbs.com/forums/showthread.php?t=181273


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## pittle (Oct 31, 2012)

When we set up our trust in 1995, our attorney suggested that we not put our timeshares in our trust.  This has worked well for us because the two we owned at the time no longer met our needs and we sold them. 

We now have several RTU Mexico timeshares and do not have them in our trust, nor do we have our children's names as heirs on any contract.  Becaue our kids are not the least bit  interested in timeshares, we hope that we out-live contract expiration/renewal dates. 

It has been our understanding that since these are not in the trust and our kids are not listed as co-owners, our executor can send a death certificate to the timeshare company stating that the contract is no longer valid.

It probablly depends on the state.  We are going to have an attorney review our Trust since it has been a few years since we moved to a new state.


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## SOS8260456 (Oct 31, 2012)

csxjohn said:


> Lisa, the next breath you take may be your last and since you know something should be done, do it.
> 
> You want to preserve the Plat. status so I would take steps to make that happens.
> 
> A lot of us have timeshares that our kids won't want so we're in a different situation.



I know.  The other thing that makes it difficult is the minute you say the word timeshare to an attorney around here, they have no clue how to handle it.  I wish I could find an attorney in PA who specializes in this type of thing.

I also wish we had done it right from the beginning or at least before Wyndham's transfer fee went up to $299, although I have heard they may work with you on this in this type of scenario.

I really hope my children see the value in our timeshares.  At their current ages it is too soon to tell.  But, even if they don't want the Platinum acct, I have read that having it in trust may have other benefits, but not 100% sure, so I wouldn't feel comfortable speculating on the board.


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## bogey21 (Oct 31, 2012)

ronparise said:


> .......my plan (not endorsed by any attorney) is a simple one. Any asset of value is held in trust or as joint tenancy with rights of survivorship.  Debt and assets of no value, remain in my name alone and become the problem of my estate and my creditors to deal with.



Ron. I like it.  Something similar to what I did (also not endoresed by any attorney).  About 12 years ago I gave all assets of value away to my kids and ex-wife.  I still have a couple of small bank accounts, which are used to receive my Pension and Social Security payments, JTWROS.  My debts and my race horses are in my name alone.  Why the race horses?  Simple.  It is because they are like TS Weeks that eat.

George


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## easyrider (Nov 1, 2012)

ronparise said:


> You are creating the trust and putting assets in it for a reason or reasons.
> 
> The answer to your question has to depend on reason you are setting up a trust in the first place.
> 
> ...



Ron's way is the right way to go unless the ts's have value or some one wants it. Place valueble assets in the trust and keep the junk as personal.

Bill


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## Carolyn (Nov 1, 2012)

Thanks everyone. Lots of great ideas. I guess we really need to sit down with our 3 sons and ask them if they are even interested in ownership of the timeshare weeks. If not, sounds as if we shouldn't include the timeshares in the trust. After all it seems as if MOST timeshares aren't worth much any more anyway.
It's all about the maintenance fee.


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## SmithOp (Nov 1, 2012)

I'm thinking of using this sticky with our disposal instructions.  We feel fortunate that our niece, named as executor, is in law school 

http://www.tugbbs.com/forums/showthread.php?t=44


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## sfwilshire (Nov 4, 2012)

SmithOp said:


> We feel fortunate that our niece, named as executor, is in law school
> 
> http://www.tugbbs.com/forums/showthread.php?t=44



I had been waiting for our DD to finish law school and pass the bar, but as soon as she did, she informed me that it would not be a good idea for her to assist with the preparation of our trust and wills, since she would benefit from the proceeds of the estate. Even though we trust her completely, she thinks even the appearance of a conflict of interest would raise questions. She suggested we hire an independent lawyer.

Sheila


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