Refusing a timeshare in a will

[Kauai Kid]

If I will my brother our timeshare weeks on Maui, but he doesn't want them beause of the maintenance fees and costs to fly to Maui, what alternative does he have?

Mahalo,

Sterling

 

[bogey21]

He just has to decline the bequest. As far as I know that's it. Then it becomes the responsibility of the Executor of your Estate to figure out what to do.

George

 

[Ridewithme38]

From what i remember, if he refused the inheritence it goes back to the estate, in which case your children, or who ever the executor of the estate is has to find a way to dispose of it and is unable to distribute assets from the estate until it is disposed ....

As you have seen, some people take years trying to unload old timeshares, if you have the typical $1,000 MF and the assets of your estate consist of a family home, watch, memento, that you would have hoped to keep in the family, it may have to be sold to satisfy that debt....

 

[csxjohn]

Talk to an estate attorney in your state.

It is very unlikely that assets can't be distributed until a timeshare is disposed of.

Do a search here on Tug, this has been discussed many times. I think you will find that my first sentence is the best usable advice you will get here.

 

[DeniseM]

There is a legal process to refuse the inheritance - documents have to filed with the court. Once the court has approved it, the other assets of the estate can be distributed.

BTW - this has been explained to Ride aud nauseam, but he continues to post his own little fairy tale...

 

[persia]

Nobody can be forced to inherit something, otherwise we'd all just leave all our timeshares to someone we didn't like.....

 

[Ridewithme38]

There is a legal process to refuse the inheritance - documents have to filed with the court. Once the court has approved it, the other assets of the estate can be distributed.

BTW - this has been explained to Ride aud nauseam, but he continues to post his own little fairy tale...

It's different in different states, so this isn't really a given...Here's what i've read in the past on here

Not exactly. The estate of the owner would have to dispose - as in sell or simply give away - the deed to a willing taker. Then the fees due would be transferred to that new owner. If the estate does not then it has to pay the fees until it too is stripped of any funds. It cannot be settled nor can it make any payouts until all assets are properly disposed of. Then, if the estate is now penniless (and that does NOT mean after paying out any bequests but prior to those potential pay outs) then the resort Association would be forced to foreclose. The estate can also ask that the Association take a "deed back in lieu" of future payments but it is under NO obligation to do so. The only obligation is that the fees be paid until a new owner for that week is found BY THE ESTATE.

If there is more than a few years of potential payments due in the estate then those can be tied up until this gets settled. Rather than wait for any settlement the heirs have coming or wasting it paying out on an unwanted timeshare until it is gone a smart Trustee will find a new owner through any method they can find & get the deed transferred and the estate settled ASAP. It doesn't happen by simply saying "he/she died". The estate lives on and holds the obligations now.

 

[Beaglemom3]

You can disclaim or decline any bequest. You are required to disclaim the timeshare in a timely manner, usually 90 days in most states.

It can get complicated from there, but this is the first step that should be taken.


I am thinking of bequeathing my timeshares back to Marriott,. :hysterical:





-

 

[DeniseM]

Ride - there were multiple responses in that thread that contradict the post you quoted, including responses from attorneys.

In the case of an estate, any existing liability must be paid. Maintenance fees due as of the death date must be paid as a liability.

A person does not have to accept any inheritance if they do not want it. An estate can abandon a property such as a timeshare under most states' probate procedures. Abandonment is designed for assets with future liabilities greater than the value of the asset, such as annual maintenance fees. Ask a good probate lawyer about disclaimers and abandonment.

In effect, all states have a procedure by which the heirs file a disclaimer and the executor files a notice of abandonment in probate court and the estate can be settled. The exact procedures vary from state to state, but they do exist.

Probate law is very much about protecting families and other heirs, not throw good money after bad. Everyone needs to find a competent lawyer to avoid the pitfall of paying that which is not a just debt.

Future maintenance fees are just future liabilities - the estate is only responsible for liabilities that existed at the time of death. If none of the heirs is willing to accept a portion of the inheritance, the executor can try to sell it or give it away -- after a reasonable effort to sell it or give it away with no takers, the estate can then abandon it.

In Florida, an estate's liability for debts (like MF's) is set by claims submitted during a set period of time (90 days). Creditors (like HOA's) who have been given notice must submit a claim against the estate of be forever barred and cannot stop any distribution.

If a claim is submitted, if must be paid in order of the priorities set by law. Once claims are paid, the estate is free to commence distribution (or abandon property) with the approval of the court, without reference to any future claims. However, if a property has value, the liens and mortgages attached to the property will have to be paid to preserve the asset... But heirs have no personal obligation to pay anything themselves.

This is the most accurate thoughts on this subject, heirs are not required to feed a dead horse, get a good probate lawyer and don't get talked into paying future MF. Abandon worthless assets, probate is set up to protect families and secondarily take care of creditors. Better yet plan ahead and put your TS in a trust and after death the trust goes defunct and the resort can go pound sand. I handle probate matters and creditors frequently get nothing after priority claims, allowances, etc. Besides most people can set up their affairs to avoid probate altogether. Take a lesson from corporate America, insulate yourself from future liabilities by arranging your affairs in advance.

Ultimately, if no one pays the MF's (trust or not; bankruptcy or not; death or not)
... HOA can still foreclose its lien and take back the unit...

But when the time comes that...
-- the trust (as owner) has folded*;
-- the bankrupt has been dicharged; or
-- further estate claims are barred:
The HOA cannot hold the owner liable for the debt and use that as leverage.

*One reason why many systems require an individual to accept liability.

 

[lcml11]

"Timeshare Owner Deceased - now what?

--------------------------------------------------------------------------------

My parents own outright two timeshares - 1 week in a FL property and 1 week in a SC property (both with Bluegreen). Both parents are now deceased and when we contacted Bluegreen they told us that we would have to pay over $1,000 to have both properties put in our name and then assume responsibility for the maintenance fees, etc. We don't live near the properties and really have no interest in using the two weeks. Selling the shares seems like a futile effort (and we're not even sure how "we" could sell them since they're in my parent's name) - so how do we dispose of them? Any advice will be appreciated."

The two timeshares will probably have to go through probate. You should talk to a probate attorney to get title properly transferred. South Carolina can be confusing and may have some limited exceptions.

 

[lcml11]

Thanks Denise.

For the poster I was quoting, I used the following South Carolina attorney to transfer some Mrytle Beach timeshares. He was great.

lawyerhall@russellsloffice.com

135 WEST PERRY RD.
MYRTLE BEACH, SC 29579

 

[Saintsfanfl]

The two timeshares will probably have to go through probate. You should talk to a probate attorney to get title properly transferred. South Carolina can be confusing and may have some limited exceptions.

I don't think they are wanting them transfered.

 

[DeniseM]

Once they are transferred, they WON'T be able to refuse the inheritance, so they should leave them in the name of the deceased.

 

[pacodemountainside]

Think about it logically. An executor must advise all known creditors of an estate via proscribed means such as snail mail, e-mail, advertise in legal section of paper etc. He sets a cutoff date for claims and then pays them. If there are disputed ones he has to resolve. Likewise, out of state real estate and no Will can complicate!

However, a creditor cannot submit anticipated future claims that are not currently due and payable such as 2013 HOA fees due next year!

Once the bills are paid the estate is closed and absent fraud history.

I did discuss this thoroughly with my estate planning attorney whose practice is limited to this area. He assured me he had personally been involved in around 5-6 situations with TSs and if resort won't accept they just waste MF fees chasing down deed and doing a Quiet Title search to clean up.

All my kids do is sign a form refusing and his secretary Notarize and they are out of picture!

I thought this poor olde horse had been put out to pasture!



:deadhorse:

 

[bobk]

Can you just will it back to the resort?

 

[pacodemountainside]

Can you just will it back to the resort?

No way! See post #6!

If people could just will/transfer to resort we would not have PCCs. But, a lot of broke HOAs!

Would you be a happy camper if some one willed you a worthless TS and obligation to pay tons of MFs unto perpetuity?

 

[timeos2]

You can refuse any inheritance from a will - as can anyone else or the resort.

Once that occurs the Estate has to deal with the current due bills and make honest attempts to sell / give away any unwanted assets. If they cannot in good faith do that then there are procedures that allows them to abandon the asset(s) and close & distribute the remaining estate. It is still far better than PCC's as the estate won't bury the deed as the scammers try to and in fact will again look for a "deed in lieu" type settelement that, once it reaches that point, even the most resistant resorts tend to accept to avoid the costs of foreclosure.

So the process may take awhile but, just like any owner, there is a legal way out if you just follow the rules. And it doesn't cost $3999 or whatever the scammers are demanding to (often) illegally and incorrectly "get you out". NEVER deal with any of them under any circumstances.

 

[csxjohn]

Can you just will it back to the resort?

No way! See post #6!

If people could just will/transfer to resort we would not have PCCs. But, a lot of broke HOAs!

Would you be a happy camper if some one willed you a worthless TS and obligation to pay tons of MFs unto perpetuity?

Yes you can will it to the resort's HOA.

Of course they could refuse it like anyone else but when no one else accepts it, they will have to deal with it sooner or later.

If a resort HOA won't help you find a buyer while you're alive they may have to find one when you die.

It's time for the resorts to face up to the reality that many units in their resort may not have a market value. As the owners get older and less able to pay, something will have to give. I know my children will not be burdened with any TS they won't want just because I bought it.

 

[Ridewithme38]

so i've got to admit i'm confused...I die and no one in my family accepts my timeshares....all my daughter as the executor has to do is pay one years MF's and 'abandon it'?

What exactly happens to 'abandoned' property? What happens to it then? Why is the HOA suddenly unable to forclose like any other non-paying owner? Is the HOA FORCED to take it? Does it become 'state' property?

 

[lcml11]

so i've got to admit i'm confused...I die and no one in my family accepts my timeshares....all my daughter as the executor has to do is pay one years MF's and 'abandon it'?

What exactly happens to 'abandoned' property? What happens to it then? Why is the HOA suddenly unable to forclose like any other non-paying owner? Is the HOA FORCED to take it? Does it become 'state' property?

I would seek the advise of an estate planning attorney in the state or states our timeshare(s) are in. The state laws on probate can vary by state.

 

[Ridewithme38]

I would seek the advise of an estate planning attorney in the state or states our timeshare(s) are in. The state laws on probate can vary by state.

just seems like BS to me, if you have to pay hundreds of dollars to get rid of most timeshares, how could it be so easy just to 'abandon' it without the HOA trying to rob your estate of every penny they could get?

I don't picture any of these corrupt self serving thieves HOA board members just rolling over and taking a TS week

 

[lcml11]

just seems like BS to me, if you have to pay hundreds of dollars to get rid of most timeshares, how could it be so easy just to 'abandon' it without the HOA trying to rob your estate of every penny they could get?

I don't picture any of these corrupt self serving thieves HOA board members just rolling over and taking a TS week

I know of at least one that was taking distressed ones back and turning them over to Wyndham at one point in time and have no reason to believe that this still does not go on at some resorts or at some locations within the Wyndham System.

A more blunt answer to that questions, sometimes it is not worth the litagation costs to pursue a distressed property. I would guess, in the way of the world, that decision is made on a case by case basis.

 

[RX8]

just seems like BS to me, if you have to pay hundreds of dollars to get rid of most timeshares, how could it be so easy just to 'abandon' it without the HOA trying to rob your estate of every penny they could get?

I don't picture any of these corrupt self serving thieves HOA board members just rolling over and taking a TS week

It was posted previously, and I am not sure if it is factual but it made sense to me, that the timeshare was considered an asset but the on-going maintenance fee was a liability.

I would think that the timeshare asset could be abandoned much as the 1970 green velour couch could be abandoned. What we are really talking about are the maintenance fees. If the fees are current i.e. no liability, then the asset should be able to be abandoned at that point. I think the HOA would not have the ability to hold an estate hostage over fees that have not yet happened. HOA would be wise to save the expense of fighting this and take it back.

Disclaimer - just my opinion based on what I have read. If this was ME and I was concerned about it I would seek professional guidance so I could sleep at night.

 

[timeos2]

so i've got to admit i'm confused...I die and no one in my family accepts my timeshares....all my daughter as the executor has to do is pay one years MF's and 'abandon it'?

What exactly happens to 'abandoned' property? What happens to it then? Why is the HOA suddenly unable to forclose like any other non-paying owner? Is the HOA FORCED to take it? Does it become 'state' property?

There are steps / rules that must be abided by but, if done correctly, an asset can be abandoned by an estate thus leaving the resort with no current legal owner to go after. But it can be easily recovered for resale & may not require foreclosure. In any case it's not a quick process but costs the owner zero & is legal. So don't listen to the bs handed out by the pcc's & rescue liars that are far more slimey than even our favorite Wastegate Weasels.

It is never true that you cannot "get out" of a timeshare ownership or that you need to pay any third party to do it. Just use the many legal paths depending on your exact situation. It may not be as fast or how you want it but it is possible & legal. Don't throw away good money you don't have to on parasitic spammers.

 

[bnoble]

how could it be so easy just to 'abandon' it

Well, you do have to die. So, it's debatable as to how easy it is.