Inherited timeshare - estate planning

[myip]

I am not sure yet. Just wondering if I should sell all my timeshares. If my DD inherited the timeshares, will she has the same benefits as I do, convert to marriott hotel points, elite membership, etc. Currently the title is joint between my husband and myself. My husband passed away last year. Should I convert the title to her now or until she inherited it.

 

[sponger76]

I am not sure yet. Just wondering if I should sell all my timeshares. If my DD inherited the timeshares, will she has the same benefits as I do, convert to marriott hotel points, elite membership, etc. Currently the title is joint between my husband and myself. My husband passed away last year. Should I convert the title to her now or until she inherited it.

Parent to child transfers should retain benefits.

 

[LeslieDet]

I am not sure yet. Just wondering if I should sell all my timeshares. If my DD inherited the timeshares, will she has the same benefits as I do, convert to marriott hotel points, elite membership, etc. Currently the title is joint between my husband and myself. My husband passed away last year. Should I convert the title to her now or until she inherited it.

Parent to child transfers retain enrollment eligibility and other benefits of ownership, like the ability to elect BonVoy points (although that is such a horrible option all these years later). You said the title is currently joint; since your husband passed, you need to update the ownership information by providing an affidavit of death of joint tenant and a copy of the death certificate to MVC to reflect ownership is now solely in your name. You are not required to record a new deed. BTW - I am assuming you held as JTWROS. If not as JTWROS, then that would not apply.

As to your daughter, yes, she can inherit the timeshare, but that requires your executor complete a probate (ancillary if your timeshare isn't in the same county in which you reside), and probate costs money. If you are sure your daughter wants to own the timeshare, you can record a new deed transferring the ownership to you and to her as JTWROS or, if your timeshare is in a jurisdiction where a transfer on death deed is allowed, you could also record one of those. Another option, if you have other real property, is to create a revocable living trust and transfer the ownership of your timeshare to your trust, and then your daughter would be the successor trustee, and able to enjoy the timeshare after you are gone and transfer title to herself or to a trust she creates without needing to go through probate.

 

[sparty]

Parent to child transfers retain enrollment eligibility and other benefits of ownership, like the ability to elect BonVoy points (although that is such a horrible option all these years later). You said the title is currently joint; since your husband passed, you need to update the ownership information by providing an affidavit of death of joint tenant and a copy of the death certificate to MVC to reflect ownership is now solely in your name. You are not required to record a new deed. BTW - I am assuming you held as JTWROS. If not as JTWROS, then that would not apply.

As to your daughter, yes, she can inherit the timeshare, but that requires your executor complete a probate (ancillary if your timeshare isn't in the same county in which you reside), and probate costs money. If you are sure your daughter wants to own the timeshare, you can record a new deed transferring the ownership to you and to her as JTWROS or, if your timeshare is in a jurisdiction where a transfer on death deed is allowed, you could also record one of those. Another option, if you have other real property, is to create a revocable living trust and transfer the ownership of your timeshare to your trust, and then your daughter would be the successor trustee, and able to enjoy the timeshare after you are gone and transfer title to herself or to a trust she creates without needing to go through probate.

I have to put on my to-do list putting our ownership into our trust. I always thought adding timeshare ownership to the trust was bad because I didn't want to create a financial burden for anyone. However after talking to attorneys, it was clear it can be disclaimed if nobody wants it. So now my thinking is to put our timeshare ownerships in the trust and make sure it's clear and noted with the trust docs on transition of the trustee it can either be disclaimed or used by the trust beneficiaries.

 

[klpenny]

I have to put on my to-do list putting our ownership into our trust. I always thought adding timeshare ownership to the trust was bad because I didn't want to create a financial burden for anyone. However after talking to attorneys, it was clear it can be disclaimed if nobody wants it. So now my thinking is to put our timeshare ownerships in the trust and make sure it's clear and noted with the trust docs on transition of the trustee it can either be disclaimed or used by the trust beneficiaries.

I need to do the same, as well as put beneficiaries on all checking and savings accounts. I am going through probate with some of my mom's estate and it is a pain. Do not want my children to have to deal with it later on.

 

[LeslieDet]

I have to put on my to-do list putting our ownership into our trust. I always thought adding timeshare ownership to the trust was bad because I didn't want to create a financial burden for anyone. However after talking to attorneys, it was clear it can be disclaimed if nobody wants it. So now my thinking is to put our timeshare ownerships in the trust and make sure it's clear and noted with the trust docs on transition of the trustee it can either be disclaimed or used by the trust beneficiaries.

If your beneficiaries do not want the timeshares in your trust, then your successor trustee can sell or otherwise dispose of the timeshare without needing to go through probate -- which can be costly and time consuming. That is the great benefit of holding the ownership in a revocable living trust. It makes it much easier on our heirs to deal with it after the death of the grantor.

 

[Henry M.]

What are the steps to get a timeshare in Hawaii (WKORV) into a living trust in another state? Do you need to hire a transfer agent in Hawaii or can it be handled though Marriott/Vistana directly?

 

[LeslieDet]

What are the steps to get a timeshare in Hawaii (WKORV) into a living trust in another state? Do you need to hire a transfer agent in Hawaii or can it be handled though Marriott/Vistana directly?

No, MVC doesn't do the work for you. If you own in Maui, and you have an existing revocable living trust, then reach out to a company like Hawaii Document Service or LT Transfers to prepare the correct documentation and then record that documentation after properly signed and notarized. Only once the deed transfer are completed do you reach out to MVC and pay the internal fee to update your ownership from you individually to your revocable living trust.

 

[myip]

I have a living trust. Who can I get to transfer the timeshare into living trust? Will they be able to remove my husband from current title. My timeshares in myrtle beach, SC and Mountain Vista, CO.

 

[LeslieDet]

I have a living trust. Who can I get to transfer the timeshare into living trust? Will they be able to remove my husband from current title. My timeshares in myrtle beach, SC and Mountain Vista, CO.

Is your husband alive? No one can "remove" a person from a deed absent that person conveying the ownership interest themself by voluntarily executing a properly prepared deed, or by a court order requiring the removal. If the real property is owned by more than one person, and your living revocable trust has only you as grantor, you cannot simply convey the entirety of the ownership of that real property into your trust because you don't own the entire property, there is a co-owner. On the other hand, if you husband has passed, and you owned as JTWROS, then you are in control of having an affidavit of death of JT prepared and properly recorded, and thereafter you could then convey the entirety of the ownership into your revocable living trust. As to the "who", SC requires a lawyer to handle any and all transactions relating to real property. In CO, you can probably use a business like LT Transfers, provided that you are the rightful owner of the whole.

 

[rapmarks]

Is your husband alive? No one can "remove" a person from a deed absent that person conveying the ownership interest themself by voluntarily executing a properly prepared deed, or by a court order requiring the removal. If the real property is owned by more than one person, and your living revocable trust has only you as grantor, you cannot simply convey the entirety of the ownership of that real property into your trust because you don't own the entire property, there is a co-owner. On the other hand, if you husband has passed, and you owned as JTWROS, then you are in control of having an affidavit of death of JT prepared and properly recorded, and thereafter you could then convey the entirety of the ownership into your revocable living trust. As to the "who", SC requires a lawyer to handle any and all transactions relating to real property. In CO, you can probably use a business like LT Transfers, provided that you are the rightful owner of the whole.

In the first post she said her husband had passed away.

 

[LeslieDet]

In the first post she said her husband had passed away.

If you notice, I'm responding to her comment where she did not state her H was deceased. I can't always go back and read everything or compare who is asking the question. In fact, in my original response, I already provided the steps required to remove a deceased spouse's name from a deed that is held as JTWROS. I actually thought it was someone else asking the question. But given that it was the same person, then that raises additional issues because it brings into question whether the living trust that was referred to in the question I responded to was newly created or if it was one that both H&W had created, and with his passing, then it would become irrevocable. The T&C of the trust would determine whether or not she is able to add property to the trust.

 

[rickandcindy23]

She did say in her first post that her husband passed away last year. The post is not edited, so you didn't see that part.

 

[LeslieDet]

She did say in her first post that her husband passed away last year. The post is not edited, so you didn't see that part.

for goodness sake; I responded to the original post and indicated that she needed to provide an affidavit of death of JT and a death certificate. So, yes, I saw that part.

Simply because I did not realize that it was the same person asking an abbreviated question in another comment, I responded to the question posed. If she really wanted to be clear, she could have said her deceased husband's name, instead of her question which referred to her "husband" which I answered.

 

[youngshooter56]

Thank you LeslieDet. Very helpful information on a topic many of us will need to deal with, and can be very confusing.

 

[Henry M.]

No, MVC doesn't do the work for you. If you own in Maui, and you have an existing revocable living trust, then reach out to a company like Hawaii Document Service or LT Transfers to prepare the correct documentation and then record that documentation after properly signed and notarized. Only once the deed transfer are completed do you reach out to MVC and pay the internal fee to update your ownership from you individually to your revocable living trust.

Thanks for the information. Very useful.

Would it be just as easy to add my daughter's name to the deed, to keep it out of the trust? She would be the one taking over the timeshares anyhow.

One of the units is in St. John. Does anyone know of a good transfer agent there? I'll check if LT Transfers does work there too.

 

[LeslieDet]

Thanks for the information. Very useful.

Would it be just as easy to add my daughter's name to the deed, to keep it out of the trust? She would be the one taking over the timeshares anyhow.

One of the units is in St. John. Does anyone know of a good transfer agent there? I'll check if LT Transfers does work there too.

You need to review your estate plan in its entirety with the assets you have and how you want to deal with them. IDK if your daughter wants to own Hawaii timeshare or not. IDK how old she is. There are always risks of adding someone to your deed because it means they co-own the property with you. As a co-owner she would have rights and obligations. Discuss how trusts work with your estate planning counsel. I'm not sure why you would want to "keep it out of the trust". Trusts avoid probate, which is a very positive perk.

As to the USVI, despite being a territory of the USA, it is my understanding that the USVI treats revocable living trust transfers differently than the 50 states. I suggest you retain counsel in the USVI to help with estate planning and the best approach for your individual needs.

 

[Henry M.]

Thanks!

 

[myip]

Do you know anyone who can do the transfer to trust in South Carolina (Broadway Plantation) or in CO (Mountain Vista)? Once that is completed, I just notify vistana? All my current benefits will stay as is. When I pass away, my DD will continue to have the same benefits.

 

[LeslieDet]

Do you know anyone who can do the transfer to trust in South Carolina (Broadway Plantation) or in CO (Mountain Vista)? Once that is completed, I just notify vistana? All my current benefits will stay as is. When I pass away, my DD will continue to have the same benefits.

I would suggest you reach out to a transfer company like LT Transfers and ask if they have a lawyer they work with in SC. LT should be able to do the work in CO. Once both transfers to your revocable living trust are completed, then you complete the internal form that will be required to update your owner info and pay the fee that is charged by MVW to update the ownership records, and then your trust will own those properties.

As to your daughter, what she will receive depends upon how your trust is structured. You are in control of what your trust says as to how your property is to be handled after you die. It is up to your successor trustee to follow the instructions. Assuming your daughter wants the timeshares at that time, then yes, the original owner benefits like enrollment eligibility or VSN participation, will transfer to your daughter, unless the actual VSN VOI you own prohibits the transfer of the original benefits upon original owner's death. I recall that someone who owns Adventuras noted in their documents that not all original benefits will transfer, but outside of Adventuras, I've not heard of any other VSN VOI that restricted the benefits when it was a transfer due to death of original owner.