Estate and Advanced Planning for Timeshares as Inheritance

[MauiLea]

I am in the process of revising my will. This put me into thinking ...."what do I do with my timeshares?" While I may enjoy and use my timeshares, I don't know that my child will want to inherit FOUR timeshares. At some point, age or work or health or finances will limit my vacation plans.

(I have a friend who inherited ONE timeshare week from her mother and HATES having to pay the maintenance fee and look for renters every year. Last year, she just ate the maintenance fee. We will try to rent hers out on TUG this year. She has no intention of ever using her timeshare)

I have five weeks of vacation a year, so 4 timeshares (3 weeks and 1 points-based) and the associated maintenance / exchange fees makes sense for me. However, I don't think it makes sense for my ONE child when she grows up.

Timeshare 1 (TS1) is a "right to use" and expires in 2023, so I am not worried about that. TS2 and TS3 are deeded. TS4 is points based and expires in 2054.

I am thinking I should proactively sell or "otherwise dispose of" one of the deeded TS3 week. That leaves one deeded TS2 week and TS4 points that she will likely inherit. Two maintenance fees are reasonable and likely she will get 2 weeks of vacation a year. If she wants more, she can become a Tugger and buy resale. If she wants less, she can auction them off on ebay or donate them or something....

I cannot ask my child what she thinks at the moment; she's too young and there is no telling what her family and financial situation will be like in the future.

What do others think? How many timeshares would you leave your child?

 

[bogey21]

Number One make sure you remind your heirs in your will that they can decline any inheritance. It is the law but a nice bold faced reminder in the will helps a lot.

My kids are older (in their 30s) so I just asked them and my ex-wife if any of them wanted to be left any of my TS Weeks. My Son wanted my ski week in Colorado so I transferred it into his name immediately. No one else wanted any of the other so I sold, did deed backs, and gave away the other six over a 3 year period.

George

 

[x3 skier]

I own five. Two are RTU and three are deeded. I don't intend to leave any in the estate but if circumstances prevent that, there is a ready market for the deeded ones and they are cash flow positive if I don't use them (I've checked) and the other two can be refused per the will.

There are clear instructions in the will about what the choices are in event my plans to dispose of them are thwarted by my untimely death by heart attack just before the avalanche overtakes me while skiing or other calamity.

Cheers

 

[dougp26364]

The simplest thing to do is nothing. Don't name them as going specifically to anyone. If the kids want them let them work it out between them in the estate settlement process. If they don't want them, as mentioned above, make sure they know they can refuse them.

Of course if you can dispose of them prior to your death, that's probably the best way to go about things.

 

[spirits]

You can just refuse timeshares?

I was under the impression that no heir HAD to accept a timeshare in a will but it was still the responsibility of the estate. Those maintence fees do go on and on. So your heirs are off the hook but the executor/executrix might have a headache disposing of them. This is one time I would like to be wrong.

 

[Patri]

Don't leave her any. Take care of business.

 

[persia]

You can't force someone to take an inheritance. If nobody wants it then estate pays the maintenance fees to make them current and then closes the estate and the timeshare company has to take it back because there's no owner.

 

[MauiLea]

Refusing Timeshare as Inheritance?

So, I am hearing that if a timeshare is refused as an inheritance, the estate can be closed and the "timeshare" company has to take it? This seem like the other resort owners will end up with the unit to either pay for, resell or whatever....

I will attempt to have NO timeshare left when I pass, but am using them for vacations in the meantime. Timing can be difficult, so I will do my best to balance or leave instructions that the inheritance can be refused.

 

[Talent312]

So, I am hearing that if a timeshare is refused as an inheritance, the estate can be closed and the "timeshare" company has to take it?

That is correct. In my will, I authorize the executor to sell, give away, return or abandon any TS the inheritence of which is declined by all heirs. In most states, creditors, incl. HOA's, have a limited period of time in which to file claims for debts due, after which further claims are barrred.
.
.

 

[madduag]

That is correct. In my will, I authorize the executor to sell, give away, return or abandon any TS the inheritence of which is declined by all heirs. In most states, creditors, incl. HOA's, have a limited period of time in which to file claims for debts due, after which further claims are barrred.
.
.

Interesting topic, my question is though, if contact is made with the timeshare company about giving the timeshare back, wouldn't this alert them to the fact that the owner has passed away and in turn make it messy?

Wouldn't it be better to just file the claims for debt due and see if they find it?

By the way, I have written a directive to my girls that if both of pass together, they should look to all of you experts for advice. Our place will be up for grabs as in a free giveaway!!

Let's hope all of us and our families don't have to face this anytime soon. Knowledge is worth millions!!

 

[cmh]

This is an interesting thread and topic! Both my name and my husband's name is on our ts deed. We have no children, so I've wondered what would happen upon our demise. I guess the estate would pay the fees and try to dispose of the ts. And I've wondered if there was certain wording I should put in my will about it.

 

[csxjohn]

Read these two articles.

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



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

Contact an estate attorney in the state you live in and discuss this with them.

My two children do not want any of the 4 timeshares I owned. So,I got rid of 3 of them in the past year and will be disposing of the other soon.

I explained to them about refusing anything they don't want. If your daughter is too young you have someone set up to take care of her affairs and they need to know to refuse them in her name.

My youngest daughter and her husband bought a unit they like and I just put her name on the deed of a unit I bought a few weeks ago in an area she wants to vaca in.

The last thing I wanted to do was burden them with all this when I'm gone.

 

[madduag]

Thanks for articles John. I will read them after work.

Our girls are young adults, just need direction. We are 4 years out to retirement and may just dump our timeshare then. It's been fun but we have big plans for winter and it includes NO SNOW!! LOL

 

[davidvel]

It is great that people are thinking about these issues.

It also is ironic that people are sold on paying tens of thousands of dollars to developers for this amazing thing that they don't want to burden their children with.

 

[SueDonJ]

It is great that people are thinking about these issues.

It also is ironic that people are sold on paying tens of thousands of dollars to developers for this amazing thing that they don't want to burden their children with.

When we were twenty-somethings and just starting our family we wouldn't have been able to afford buying these amazing things either direct or external, and the money to pay the annual MF and travel expenses would have had to fall from the heavens because every dime we had was used for day-to-day living expenses and savings that were earmarked for future use. We had years where our "vacations" were local day trips to inexpensive or free attractions. We didn't buy until our budget allowed for it, when the kids were in high school.

Our kids are now twenty-somethings planning their weddings later this year. They LOVE our timeshares but I'm pretty sure they also have much better things to do with their money than commit a chunk of it to annual not-inexpensive travel. We knowingly made the commitment to timeshares but don't want to force that commitment on anyone, least of all our children.

 

[bogey21]

Contact an estate attorney in the state you live in and discuss this with them.

My two children do not want any of the 4 timeshares I owned. So,I got rid of 3 of them in the past year and will be disposing of the other soon.


The last thing I wanted to do was burden them with all this when I'm gone.

I have followed the same path with my Weeks. Got rid of 6 Weeks and gave a Week my Son wanted to him. I'm not sure about the "contact and estate attorney" part though. Probably ok it the estate is complex but I hate to pay lawyers for things I can research and take care of myself.

George

 

[tobymelrose]

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

This link is very useful. I also owned 2 timeshare and got rid of them recently as my son dont want it. IMO, you can also take the help of professional estate lawyers who can guide you in excellent way and save you from any legal obligation. I also took the help of [link deleted] and they helped me in Estate and Advanced Planning for Timeshares as Inheritance.

 

[csxjohn]

This link is very useful. I also owned 2 timeshare and got rid of them recently as my son dont want it. IMO, you can also take the help of professional estate lawyers who can guide you in excellent way and save you from any legal obligation. I also took the help of [link deleted] and they helped me in Estate and Advanced Planning for Timeshares as Inheritance.

I posted links to this article and another in post #12. I'm glad you agree that it is helpful.

Seeking the advice of an attorney specializing in estate law in your state is never a bad idea.

Welcome to TUG and thanks for shedding more light on this often asked topic.

 

[ptlohmysoul]

I am in the process of revising my will. This put me into thinking ...."what do I do with my timeshares?" While I may enjoy and use my timeshares, I don't know that my child will want to inherit FOUR timeshares. At some point, age or work or health or finances will limit my vacation plans.

(I have a friend who inherited ONE timeshare week from her mother and HATES having to pay the maintenance fee and look for renters every year. Last year, she just ate the maintenance fee. We will try to rent hers out on TUG this year. She has no intention of ever using her timeshare)

I have five weeks of vacation a year, so 4 timeshares (3 weeks and 1 points-based) and the associated maintenance / exchange fees makes sense for me. However, I don't think it makes sense for my ONE child when she grows up.

Timeshare 1 (TS1) is a "right to use" and expires in 2023, so I am not worried about that. TS2 and TS3 are deeded. TS4 is points based and expires in 2054.

I am thinking I should proactively sell or "otherwise dispose of" one of the deeded TS3 week. That leaves one deeded TS2 week and TS4 points that she will likely inherit. Two maintenance fees are reasonable and likely she will get 2 weeks of vacation a year. If she wants more, she can become a Tugger and buy resale. If she wants less, she can auction them off on ebay or donate them or something....

I cannot ask my child what she thinks at the moment; she's too young and there is no telling what her family and financial situation will be like in the future.

What do others think? How many timeshares would you leave your child?

If your child doesn't want the dvc, you can leave it to me