WKORV OFD - Use a Revocable Living Trust?

[baluders]

Hello,

New to timeshares. About to purchase my first one at WKORV OFD EY. I've been reading about Revocable Living Trusts, and the protection they provide you for timeshares, etc. However, as WKORV seems to have resale value, is it necessary? Or just buy in our names and call it good?

Thanks for your insights.

 

[5finny]

I have my timeshare ownerships in Trusts
Not sure what "protections" you are seeking

If it is the ability to just walk away from the ownership I know that some have touted that as a benefit
I am not convinced that it is that simple and that is not the reason I use a trust

I see the advantages of a trust mainly as follows:
1 It avoids the need for ancillary probate
2 It gives me the flexibility of naming the beneficiary of the trust and also who has the control of the trust (control and use can be different)

I see the main disadvantages of a trust as 1) expense of creating and 2) adding a layer of complexity which seems to confuse others.

If this will be your only ownership I don't know that I would bother with a trust-- if you intend on owning more I would give it strong consideration

I do believe that trusts are right for me , but that said, at times they can be and are a real P.I..T.A
Having said that I would do it again

 

[LeslieDet]

Hello,

New to timeshares. About to purchase my first one at WKORV OFD EY. I've been reading about Revocable Living Trusts, and the protection they provide you for timeshares, etc. However, as WKORV seems to have resale value, is it necessary? Or just buy in our names and call it good?

Thanks for your insights.

It isn't a protection for timeshares that owning real property in a revocable living trust creates, rather, it is the avoidance of probate and ease of process by your loved ones when you pass. Trusts avoid probate. That means when you die your successor trustee doesn't have to go to a court in Hawaii to probate your estate as it relates to Hawaii real property ownership. Don't focus on the "timeshare" aspect; rather focus on the real property aspect.

 

[baluders]

It isn't a protection for timeshares that owning real property in a revocable living trust creates, rather, it is the avoidance of probate and ease of process by your loved ones when you pass. Trusts avoid probate. That means when you die your successor trustee doesn't have to go to a court in Hawaii to probate your estate as it relates to Hawaii real property ownership. Don't focus on the "timeshare" aspect; rather focus on the real property aspect.

Sounds like Hawaii and probate is the issue. Can delay getting beneficiaries the timeshare, making booking a problem, and adds additional estate logistics no one wants. One way to avoid this Hawaii probate to use a Trust, I guess another is to just add the (eventual) beneficiary (my adult son) to the title. I don't live in Hawaii, and a timeshare would likely be my only property there.

Any hidden downsides to just adding them to the title now? Besides the obvious shared ownership, asset in their name, etc. I'm not too concerned about those things.

 

[mauitraveler]

Sounds like Hawaii and probate is the issue. Can delay getting beneficiaries the timeshare, making booking a problem, and adds additional estate logistics no one wants. One way to avoid this Hawaii probate to use a Trust, I guess another is to just add the (eventual) beneficiary (my adult son) to the title. I don't live in Hawaii, and a timeshare would likely be my only property there.

Any hidden downsides to just adding them to the title now? Besides the obvious shared ownership, asset in their name, etc. I'm not too concerned about those things.

We put our VOI (ownerships) into our Trust four years ago. Because we wanted to give our niece and her husband one of our WKORV units after we have passed, it was an easy process to re-title the existing deed. We added them to the deed with the help of LT Transfers. That way, it will be easy for my niece to re-title the deed when my husband and I are gone. All she has to do is drop us from the deed, according to Vistana, since she will already be on the deed.

 

[dioxide45]

I guess another is to just add the (eventual) beneficiary (my adult son) to the title. I don't live in Hawaii, and a timeshare would likely be my only property there.

That is an option but makes your son legally liable for the timeshare. They can't simply say they don't want it when you pass. Also, you would need to make sure title is held properly in order to ensure it automatically passes to him upon your passing.

 

[rickandcindy23]

That is an option but makes your son legally liable for the timeshare. They can't simply say they don't want it when you pass. Also, you would need to make sure title is held properly in order to ensure it automatically passes to him upon your passing.

This is exactly why we are selling a bunch of our Sheraton weeks. The kids' names need to be taken off, and this is the best way to accomplish the task.

 

[baluders]

This is exactly why we are selling a bunch of our Sheraton weeks. The kids' names need to be taken off, and this is the best way to accomplish the task.

Hmm; sounds like the best option is to just do it in our names with right of survivorship. And leave the kid off. If they want it, they can take it when the time comes and do the transfer. Less names on title the better.

 

[LeslieDet]

Hmm; sounds like the best option is to just do it in our names with right of survivorship. And leave the kid off. If they want it, they can take it when the time comes and do the transfer. Less names on title the better.

Just as long as you realize that means no matter what, whether your kid wants it or not, if you die owning the property outside of a trust ancillary probate will be required. That adds time and money to the equation.

 

[sjlola]

Since WKORV is one of the few properties that does have some resale value (not what you paid, but still in today's market, depending on the deeded view, $10-15,000), it may be worth titling it in the name of your living trust. Whomever inherits would need to pay the ongoing maintenance fees and go through some hoops to sell if they don't want it, but it's probably worth a conversation with those named as beneficiaries in your trust and ask if this is something they might want or want to sell for whatever that market value may be. If they indicate they don't want it, maybe skip the trust aspect of title.