Help on how to leave your weeks to family

[tombo]

How do you set up the trust and what are the advantages and disadvantages? I own over 20 weeks and I personally pay the MF's, reserve the floating weeks, log the fixed weeks, maintain the banked weeks, and run all ads to rent our weeks we aren't going to use. My wife is on the deeds of all weeks to protect, or punish her, depending on how she handles our timeshare portfolio. My kids are listed on the deeds of several weeks so they can get owner's discount rentals etc if they want them. I really worry because without knowledge and hard work, the weeks I love will quickly become a burden to my family after my death. My kids just know that we own a lot of timeshares. My wife knows that I own and rent a lot of them, but she doesn't know how or where I do that or what to do if they don't rent. I really don't want to leave the timeshares I love to my family as a burden since I doubt any of my family will want to put in the time or effort it takes to make the weeks valuable. I would like to have them have the opportunity to keep the weeks they want and to let the weeks they don't want go after I am gone. I am looking forward to any advice on how to make sure my timeshares aren't a burden to my family.

 

[Patri]

It will be a mess and a burden. Perhaps right now you should square away with each of your children which weeks/resorts they would want. Transfer the titles to them now but you keep managing. Then when you are gone they take over m/f and reservations (which you have taught them how to do).
It may even be wise to start purging your timeshares. If no one is interested in continuing the 'business' and is not learning the rental details, they are not going to pick that information up quickly while grieving you, and could run into financial trouble.
I suppose you could prepare a detailed notebook in lay language that explains how to do everything. Make sure your wife and kids know where the notebook is.

 

[wackymother]

Are your children grown? If they are, think about which one (if any) is most likely to enjoy managing a group of timeshares. If you have a likely candidate, you could work with that one to teach him/her how you do things.

We have two timeshares, and we were just discussing this with our kids, who are 18, 13, and 9. The 9yo is the MOST interested! The 18yo immediately said, "I would sell them!"

 

[Cathyb]

We have seven weeks of timeshares and a Trust. To complicate things, we are in second marriages with 5 kids from the former marriages. What we decided was to group the timeshares into five parcels each, attempting to make each parcel equal value. We then instructed our Trust to have the kids reach into a bag and draw their parcel. If any want to exchange with each other afterwards -- that is their choice, but the 'luck of the draw' is in their hands Hopefully this will avoid some of the problems estate settlements have.

Oh, one more thing, we instructed the Estate to pay the first year's fees for all seven weeks so the recipients have time to learn how these expenses are paid.

 

[richardm]

Leaving timeshares to your estate....

Just a few quick suggestions as I deal with this constantly, and it is rarely a good experience.....

1) Check with your attorney to try and discover and resolve any probate issues that could arise. Also, ensure your attorney considers probate ramifications in the state you reside, AND in the states the properties are located! (This is a common mistake, and can cause havoc when the recipients later try and sell!).... Perhaps making revisions to the existing deeds and adding the recipient as a co-owner before it becomes an estate issue will be something your attorney suggests.

2) Ensure your family REALLY understands the financial responsibilities of ownership, and the benefits of using the property! Also, it may be advisable to obtain a CMA for the property in question- so they also understand the current resale value (if any) of the property... Too often, your relatives will say they want the timeshare, but they are simply thinking that they can sell it and make a bundle.. Needless to say- when they find out how that works- it can be a very eye opening experience!

3) Finally, make sure they have used a week at the resort they are getting (and have paid their own way to get there)! Timeshare is not for everyone- and if travel costs aren't something they consider- it may not as feasible as they expected. Also, it may be a good idea to have them experience the "flashing message light of impending doom" and show you that they can manage to say "No" to a resort salesperson... I can't tell you how many sellers I deal with that got the property as part of their inheritance, went on their first vacation, and UPGRADED!


4) I hate to say it, but often the wisest decision may be to start reducing your timeshare ownership and begin renting weeks to supplement your travel. Teach your family about the value of resale, and if they really want to become an owner- leave them the cash to do so! I'm willing to bet many will find other things to do with the money.........

 

[ownsmany]

sell some now

I think you may want to think about "downsizing" your portfolio. If someone isn't into all the work about managing the portfolio - it quickly becomes a nightmare.

I dont' own near as many as you - but I'm thinking about downsizing. I'm not thinking of leaving this earth anytime soon - but you never know what tomorrow holds.

I know that the timeshares I have would be a nightmare for my family to deal with. The kids are too young and DH has no interest in them.

 

[tombo]

Downsizing does make sense. I am not old enough that I am planning on leaving here anytime soon either, but we never know when our time will come.

I wish there was a way that I could leave the weeks where they could continue to use them if they want to, but simply let them go back to the resort if they don't want them. Could I deed most of my weeks in my name only, and after my death the kids and/or wife could continue to pay the MF's if they want to and simply stay as my guest. The resort would receive their MF's so anyone I choose could stay there. I would be dead but the resort wouldn't know that. Then if they tired of the week(s) or decided it was too much trouble they could simply give them back to the resort by telling them that the owner (me) had died. The resort couldn't pursuee collection against a dead person. I could state in my will that my family could have any weeks they want (if any) after my death.

I know someone is going to figure out a lot of reasons that this won't work. I am just bouncing ideas off of everyone.

 

[Talent312]

Question: How would you obtain a guest certifiicate for them after you die?

Here's a few ideas:
1. Deed them to a living, revocable trust, along with a source of funds for the payment of MF's. You would be the trustee. However, this could have potential tax implications for you -- it be like a family-corporation -- and after you go, someone else would have to be willing to take on the task of administering the trust.

2. A testamentary (will-based) trust in which you direct your executor to place titles and funds for MF's in a trust described in your will. However, that would mean the units would the subject to probate administration. In my own family, my father placed 1/2 his estate in trust for one of my brothers, appointing his executor as the trustee.

3. Deed each to a respective heir, reserving a life estate for you+spouse.
4. Deed each to you, spouse and a respective heir, jointly with right of survivorship in each.

The problem with #3 + 4, is that you lose control of the title. If you ever wanted to sell them, you'd need their signature, and their interests would be subject to the claims of creditors.

However, please do not consider this legal advice, just the musings of an arm-chair quarterback. For legal advice, please consult an attorney well-versed in estate planning.

 

[tombo]

I am sure that an attorney would not be cheap, but the prices I paid for most of my weeks were. I know of at least 4 weeks that I need to get rid of because they would be a burden, heck they kind of are a burden to me. Then I could get rid of a couple of others that wouldn't bother me that much.

After doing the above I would be left with about a dozen weeks. Seven of those rent well, but someone would have to do the work to rent them. The other 5 are great locations close to home which could also be rented or visited every year by my kids.

If I downsized and did the living revocable trust, would the kids have the option to take a few of the weeks after I die letting the others go, or would they be obligated to own them all. I am trying to figure out how to keep my favorites weeks now, but somehow leave wife and children the option to keep any, all, or none of my remaining weeks after I die.

 

[Liz Wolf-Spada]

I believe that in a revocable trust, you and your wife are the trustees, so as long as one of you is living, that person has ownership with other beneficiaries also in the trust (ie the kids). So, what you might want to do is make a list with your wife of what timeshares she would still want if you were to pass on before her and include the kids interests in that list. Personally, I wouldn't suggest leaving more than one week to each kid. It gets expensive, as we all well know, and requires some planning and some people don't like the planning and prefer more flexibility. I think leaving money for the first years fees is a great idea and gives the kids time to decide what to do. You could also include directions on how to sell them for $1 or so on ebay just to get rid of the maintenance fees.
Liz

 

[Talent312]

If I downsized and did the living revocable trust, would the kids have the option to take a few of the weeks after I die letting the others go, or would they be obligated to own them all. I am trying to figure out how to keep my favorites weeks now, but somehow leave wife and children the option to keep any, all, or none of my remaining weeks after I die.

I'm no expert on trusts. I took a course once about ~30 years ago, so I'm only speculating here... But I think that, if the trust abandoned certain properties, the trust and its trustee(s) could still be held liable for past-due MF's and the remaining properties would be at risk from judgment liens.

So, how to insulate desirable properties from liability for questionable properties? Maybe by not putting questionable units into the trust at all, but allow them to go thru probate? Heirs, generally, have the right to disclaim or refuse any bequest, and then its up to the executor to dispose of the property as best he or she can, so as not to harm the estate.

 

[tombo]

I'm no expert on trusts. I took a course once about ~30 years ago, so I'm only speculating here... But I think that, if the trust abandoned certain properties, the trust and its trustee(s) could still be held liable for past-due MF's and the remaining properties would be at risk from judgment liens.

So, how to insulate desirable properties from liability for questionable properties? Maybe by not putting questionable units into the trust at all, but allow them to go thru probate? Heirs, generally, have the right to disclaim or refuse any bequest, and then its up to the executor to dispose of the property as best he or she can, so as not to harm the estate.

If the heirs can disclaim any weeks they don't want, then I need to only have each child deeded as an owner on a week each. Then I can put my wife on several of the best weeks, and have myself listed as the sole owner on the rest. When I die the family can keep any weeks they want and simply refuse the ones they don't want and the executor will have to dispose of any unwanted weeks. If this is correct it would work for me and my family wouldn't be obligated to any fees or collections because they aren't listed as owners, and the owner (unfortunatelly me) will be dead.

 

[rickandcindy23]

Tom, we face the same issue with our timeshare ownerships. All of our timeshare weeks have the kids' names on them. We don't want them to be angry that we stuck them with all of these timeshares later on. Our daughter has a handle on what we own, so it won't be a big shock to the 3 kids as to what we own and how much the financial obligation will be to them.

Hopefully, our daughter will be able to sell the weeks cheaply, or basically give them away, if the others don't want them. But we are only 53 and plan to use our timeshares for a long time to come. If Rick is stuck with all of those weeks, should something happen to me first, he will know what to do, I think. I am the one that manages the bills and the timeshares. He just gets the time off from the firehouse when I tell him. :rofl:

 

[Talent312]

If the heirs can disclaim any weeks they don't want, then I need to only have each child deeded as an owner on a week each. Then I can put my wife on several of the best weeks, and have myself listed as the sole owner on the rest. When I die the family can keep any weeks they want and simply refuse the ones they don't want and the executor will have to dispose of any unwanted weeks. If this is correct it would work for me and my family wouldn't be obligated to any fees or collections because they aren't listed as owners, and the owner (unfortunatelly me) will be dead.

This could work. I'd hazard to guess that, as long as the MF's were paid thru the period for claims against the estate, there'd be no attempt to enforce a lien for MF's until well-after the other assets of the estate were distributed, and possibly until after the estate was closed.

[But I know nothing for sure about the probate laws of your state, and anything I say here should be checked against competent legal advice.]

 

[Robert A Booey]

I own over 20 weeks and I personally pay the MF's, reserve the floating weeks, log the fixed weeks, maintain the banked weeks, and run all ads to rent our weeks we aren't going to use.

Off topic, but Good grief man. You must spend the other 32 weeks of the year managing your portfolio of timeshares.

I'll be REALLY impressed when I hear about someone who has enough timeshare weeks to basically live in them 52 weeks a year, just going from place to place.

 

[Mel]

Not 52 weeks, but we do have members who spend the majority of the year in timeshares, and at least one who sold his house. It's not a bad way to spend retirement, particularly if you are flexible and willing to move around a bit. With excess inventory weeks being available for under $200, that's around $800 a month including utilities. Maybe expensive for some parts of the county, but downright cheap in others.