Abandoning a Timeshare Upon Death

[Rent_Share]

Got This PM

Your signature line
Your signature line caught my eye. I have no plans of kicking off anytime soon, but just curious how an heir would go about refusing to accept ownership of my timeshare?

The relief companies are using the no exit strategy and the maintenance fees will continue to be a burden to your children and their children . . . . to get people to pay them up to 4 years of maintenance fees for their exit strategy. THAT IS JUST NOT TRUE

No once can be forced to accept a liability (on going maintenance fee contract from the decedents estate)

As long as the estate is "open" any maintenance fees must be paid as estate expenses

The executor and heirs need to be put on notice that they are not obligated to accept ownership as dissolution of the remaining assets.

The exact form of rejecting the worthless asset varies from state to state as do most probate rules and forms. The HOA is put on notice and will generally cooperate in accepting a transfer, rather than ultimately having to take action to get an "abandoned asset" back into a position that it can be sold to a dues paying owner .

Please continue the conversation if I have misspoken or you have additional information to provide

 

[csxjohn]

I've always liked that signature line of yours and when this comes up I include these two links to get people started in the right direction.

http://www.timesharetrap.com/how-to-refuse-a-timeshare-inheritance.html

http://en.allexperts.com/q/Time-Shares-1843/2011/2/Timeshare-deed-perpetuity.htm

I've had a couple people tell me they like my signature line so in both our cases I hope it does some good.

 

[Rent_Share]

Notwithstanding finding a willing taker, death is a sure exit strategy from timeshare ownership

 

[SMHarman]

Notwithstanding finding a willing taker, death is a sure exit strategy from timeshare ownership

Though I hear ARDA is working with out legislators to close that loophole

Sent from my LT26i using Tapatalk

 

[Rent_Share]

Contracts in perpetuity are illegal

 

[Passepartout]

"Your signature line
Your signature line caught my eye. I have no plans of kicking off anytime soon, but just curious how an heir would go about refusing to accept ownership of my timeshare?"
_________________________________________________________________________________________

It is pretty clear here that this person wants a 'nuts and bolts', step-by-step how-to. Best to be careful here to advise this person to have a visit with a qualified professional, well versed in probate and estate planning in his own area.

All jurisdictions are not the same, as are all estates. Family dynamics differ. While we are fond of telling people, 'Just refuse the inheritance', it ain't necessarily that easy. It may require the estate- through it's executor- keeping the estate open until this issue is resolved. There may still be somewhat ugly encounters with letters between lawyers for the estate and the resort threatening lawsuits etc. There likely will be comments made about the deceased being beyond caring about anybody's credit score.

While we agree that passing along a negative asset is avoidable, one should be careful of either providing or accepting as gospel, any information found online.

Jim

 

[FL Guy]

Thanks for the info. My brother, whose spouse died last year, wondered if he would have been able to refuse inheritance of his wife's closets full of clothes, file cabinets full of business files, etc. that he wished he hadn't had to deal with.

 

[pacodemountainside]

Listen to Jim . He has ready access to expert legal advice which generally boils down to consulting a knowledgeable attorney where you are domiciled.

Virtually all of the newspaper, Internet, magazine, etc. "expert" advice columns end with consult you own personal expert for further details.

 

[SMHarman]

Contracts in perpetuity are illegal

True, though as an aside, the 99 and 999 year ground lease exist in England. Often with the landowner only collecting pennies on that lease.

http://en.wikipedia.org/wiki/999-year_lease

You also have leasehold 'real' property which as the lease dwindles the purchasor effectivly is prepaying say 5 years rent when they buy the lease, though laws on how to properly extend these were passed a good few years back.

 

[LannyPC]

Though I hear ARDA is working with out legislators to close that loophole

I can just imagine some heartless article writer trying to stir up attention with the title of his article:

"Desperate Timeshare Owner Commits Suicide to Get out of Timeshare Ownership. Still Owns It."

 

[Rent_Share]

The exact form of rejecting the worthless asset varies from state to state as do most probate rules and forms. The HOA is put on notice and will generally cooperate in accepting a transfer, rather than ultimately having to take action to get an "abandoned asset" back into a position that it can be sold to a dues paying owner

I did leave off consulting with a professional familiar with the probate rules for your individual situation. Not sure if it was intentional or just a normal post, since when ever you recommend legal counsel on this site you tend to get slammed.

The one issue that has been stated if I die in California under California probate law and I hold a time share in Florida, it has been alleged that a separate probate estate has to be opened in the state that real property is located in, and the rules of abandonment for the state where the liability (REFUSE TO CALL A USED TIMESSHARE AN ASSET) is located apply ?

Anyone care to comment

 

[Rent_Share]

True, though as an aside, the 99 and 999 year ground lease exist in England. Often with the landowner only collecting pennies on that lease.

http://en.wikipedia.org/wiki/999-year_lease

You also have leasehold 'real' property which as the lease dwindles the purchasor effectivly is prepaying say 5 years rent when they buy the lease, though laws on how to properly extend these were passed a good few years back.

Automatic renewal clauses are a work around to those restrictions

 

[nazclk]

Estates/Timeshares

And how would that apply to timeshares out of the US.

 

[Rent_Share]

IMHO if it has been determined to be of no value and the heirs have no interest, the estate would only pay as long as it had assets. AND then put the HOA/Management company on Notice.

From what I have read on TUG, Many (MOST?) foreign timeshares are not secured by a trust deed equivalence ?

 

[Passepartout]

And how would that apply to timeshares out of the US.

Why should it apply differently?

 

[tschwa2]

And how would that apply to timeshares out of the US.

Deeded timeshares may be different than a contract membership which applies to most Mexican RTU. You need to check your contract and may want to contact a Mexican contract lawyer although it may be difficult to find a reputable one that you can trust.

 

[Rent_Share]

If the contract had any type of venue clause that made it enforceable in the US, the US probate laws in that venue would prohibit any attempt by a HOA or Management company to cram down ownership on an heir(s) contrary to local probate law.

If the debt is bought by a collection agency, they have no legal right to collect from the heirs (assuming it was properly abandoned by the estate under local probate rules) and can suffer significant damages if they do not cease and desist collection attempts from the estate beneficiaries under FDCPA

YMMY

 

[TUGBrian]

It is a shame that this process is so complicated and varies by state...I would like to write an article about it one day but fear the ramifications of someone following the advice and it not applying to them due to some bizarre random state law.

 

[Rent_Share]

But stimulating the discussion takes away the most effective weapon the PCC's/Viking Ships have in getting the elderly to stop forking over 4 X their annual maintenance fees as not to be a burden to their children (EMOTIONAL BLACKMAIL).

 

[Passepartout]

It is a shame that this process is so complicated and varies by state...I would like to write an article about it one day but fear the ramifications of someone following the advice and it not applying to them due to some bizarre random state law.

Agreed. It would make an interesting article- and if someone took the time to make it all-state-encompassing, would probably get published in something like Money, Forbes, who knows where-all. Timeshares are very likely NOT the only relatively worthless 'assets' that get passed from the acquiring generation to an innocent younger one.

Here's a start if you want to look at the reason this needs to be assessed individually, both on a personal basis, but State-by State: http://estate.findlaw.com/planning-an-estate/state-laws-estates-probate.html

Jim

 

[persia]

The point is no one can force some one to take a anything as an inheritance, the laws governing the exact method you use to refuse it differ from place to place, but the basic right of refusal is pretty much the same anywhere in the English speaking world.

 

[Talent312]

... legal advice generally boils down to consulting a knowledgeable attorney where you are domiciled...

... who may advise you to consult an attorney where the property is domiciled...

From www.dummies.com ...
Does an Estate Need Ancillary Administration?
An estate requires ancillary administration if it has real estate subject to probate that is located in a state other than the decedent’s state of domicile. You usually only need ancillary administration if the real estate is subject to probate in that state.

NOTE: That's not to say that every resort requires an in-state probate order. I'm personally familiar with a case in which a Virginia TS resort accepted a Florida probate order which identified the spouse and the sole heir and distributed "all assets" to her.
.

 

[persia]

And of course the maintenance fees must be up to date when the estate is closed, there can't be anything owed at the time of closure.