Best form of timeshare ownership?

[RealRhino2]

Hi all!

Okay, I just won an eBay auction for a timeshare and the seller is asking for information to complete the transfer. A simple one has me stumped: who should be on the title and what form of ownership will it be "vested" in?

My scenario: I am married with adult children. The timeshare is mostly my idea/desire, not my wife's (she just wants to go on the trips! When we go to the resort, it'll be together. If, God forbid, we ever divorced, she'd be fine with me having it. Most importantly and most likely since I'm older than her, if and when I die, she probably won't want to keep it. So my initial thought was I would have it titled in my name only as "married as sole and separate property." That way if I died and she didn't want it, she could just renounce any inheritance of it and be done. BUT, what if she later decides she wants it? Would she have the legal right to keep it if I leave it to her in my will? Would she have to go through probate to do that and could that be a hassle with the resort? And If I want to go through an exchange company to book other trips for her to use for a "girls' trip" without me, would that be harder if she's not on the title because she's basically in the same position a guest or renter would be, as if I rented it out to a stranger? If I'm the sole owner, would she have any ability to reserve our week, do anything at all, or would it be like how the cell service provider won't tell me anything because she's the "primary" on the account?

The other choices for Vesting are joint tenants with rights of survivorship or tenants in common. Do either of those leave an opening for her to just say she doesn't want it and be able to renounce it, or would she then have to sell it or give it away if she wants out?

What I want is ease of use for the resort for us both and for any exchanges or trips through RCI (for example) that my wife would take without me, and for her to be able to talk to the resort or the exchange company so I don't have to do all the work. BUT, I also don't want to make it hard for her to get rid of it cleanly and quickly if that's what she wants to do when I die.

Any recommendations? Am I overthinking this?

Thanks in advance.

 

[VacationForever]

You have asked all the right questions and addressed the pros and cons. Yes, overthinking and if I were in your position I would just take it as joint tenants with rights of survivorship. Both of you will likely be using it for decades and having both names on the deed will save you a ton of issues with guest name/buy guest certificates etc. You will also likely to both decide to give it away when one of you will no longer be able to travel due to old age. Enjoy!

 

[chapjim]

If both you and your wife are on the deed, it would be held as tenants by the entirety (not available to unmarried persons). There are some differences in ownership when compared to joint tenants with rights of survivorship but they probably are not important to this discussion.

I think taking ownership in your name only would be a mistake unless you can't get your wife to sign the sale agreement, in which case there is no choice.

 

[rboesl]

It sounds to me like you should be talking to your wife about this before making any decision.

Based upon what you wrote you have a solid understanding of the different types of vesting. Explain the differences to her and make a joint decision.

 

[chapjim]

It sounds to me like you should be talking to your wife about this before making any decision.

Based upon what you wrote you have a solid understanding of the different types of vesting. Explain the differences to her and make a joint decision.

According to OP, they did talk about it but it doesn't sound like they really had the proverbial "meeting of the minds."

 

[Ski-Dad]

The timeshare is mostly my idea/desire, not my wife's (she just wants to go on the trips!

I believe, you have answered your own question. Under either Joint Tenants or Tenants in Common, your lovely bride is going to get saddled with the unit as a ongoing liability. That will be your legacy.

Unless she has an interest these, leave her off the deed. She can always inherit them, and the only cost is the deed transfer. If she is on the deed and wants off, it may cost materially more to get out.

The downside risk on the wrong decision is much greater when she is placed on the deed.

 

[T-Dot-Traveller]

......My scenario: I am married with adult children. The timeshare is mostly my idea/desire, not my wife's (she just wants to go on the trips! When we go to the resort, it'll be together........

Welcome to TUG .
It might be worth posting what timeshare system.
Reason -Some systems charge significant dollar amounts for guest certificates.[ example- Wyndham ]
and that includes family not on the ownership checking in a day before you.

**********
FYI -..... " just wants to go on trips " .....is pretty typical on this forum for spouses.

The interesting thing is that in my opinion TUG membership does not skew particularly male or female.
What it does skew towards is people who enjoy planning and analyzing options .

 

[jules54]

Leave her off the deed. Put hee on the exchange company accounts if possible. They dont have the same legal ramifications. I have a variety of both. I’m married with adult children. Some deeds are only in my name. My Wyndham points deeds(some of them) have husband and all the kids plus a granddaughter. This puts all their names on the Wyndham points account but not on the deeds of some so they are not forced to inherit. I’d like to add my daughter in laws also, but my last Wyndham purchase did not go through so no go for them.

 

[Eric B]

If both you and your wife are on the deed, it would be held as tenants by the entirety (not available to unmarried persons).

Tenancy by the entirety isn't available in all States. It's also not obligatory for married folks - they can take title as joint tenants or tenants in common if they want to. Doesn't really matter too much for this discussion as you said.

As far how to have it titled, I have several ownerships that I took as a married man as my sole and separate property in order to give my wife the option of rejecting it if I predecease her (though I don't plan to do that). The only downsides are that I might need to get a guest confirmation for her if she goes to one of those without me and it might cost a couple hundred dollars to retitle if she wants to keep one. All the ones that she's 100% on board owning and will want to keep we are both on the titles to. IMHO, it's really a choice that the OP will need to make based on circumstances - if the TS is in Nevada, a spouse not taking title has to provide a notarized acknowledgement for a sole and separate property deed to be recorded, at least in certain counties, so that flips the issue of whether she'll sign something the other way, oddly enough.

 

[Talent312]

I see tenancy by the entireties (where available) as preferable to other forms of joint ownership becuz neither party can dispose of their share or lose it the claims of an outsider without the joinder of the other, whereas other forms of joint ownership typically could result in one spouse being in bed with a stranger.
... Prolly not a major risk, but who knows...
,

 

[Mongoose]

According to OP, they did talk about it but it doesn't sound like they really had the proverbial "meeting of the minds."

I'm certainly not a marriage counselor, but I have been married for 30 years. This is not a one time purchase, its an ongoing financial commitment . I certainly wouldn't move forward without her buy in or it will be nothing but a point of conflict for years to come and that is not conducive to a peaceful vacation. Maybe rent a week with a brand/location you are interested in as a way to help her experience the value of a TS resale?

 

[North Fork Gal]

I have a different issue with the right of survivorship. My husband died and has a TS in St. Thomas, we used yearly. My name is not on it. The lawyer in St. Thomas said it would cost over $3K to probate. He didn't leave a will either, but that's another kettle of fish. I don't know whether to pursue or deed back...

 

[e.bram]

One person LLC. Lots of freedom, no liability. No tax return required.

 

[Jeddy]

"Best form of ownership" is seems to be next of kin to "it all depends on...."

An excellent resource for this forum would be a timeshare-specialist lawyer article on the available forms of ownership with a list of the advantages/disadvantages of each, with particular emphasis on what happens if one owner predeceases the other.

<I am not a lawyer> and I would like to know if there are differences in strategy which depend on the laws of the state in which the OWNERS live (in which a will would be probated)..

Any volunteers?

There is an article on this topic on the Redweek site, but it's 15 years old.

 

[davidvel]

For those interested here is a chart of vesting types. Of course, all States have their own particular property laws.

https://chicagotitleconnection.com/Images2017/PDF/8CommonWaysGrid2017.pdf