Timeshare Inheritance: Everything You Need to Know

Did you recently inherit a timeshare? Wondering what your next steps are? Then this is the blog post for you. Timeshare inheritance often comes as a surprise. Even more surprising are the obligations that come with it. Do you have to accept ownership? Who is legally responsible for annual fees? Can you sell your inherited property? Although a timeshare can be a great source of vacation memories, it is also a big responsibility, and can be a financial burden if not carefully budgeted for. Luckily, should you unexpectedly find yourself the new legal owner of an unwanted timeshare, you do have options. Read on to learn everything you need to know about what inheriting a timeshare means for you.

What Is Timeshare Inheritance?

So, what is timeshare inheritance, exactly? Well, like most other types of property, such as cars, houses, and land, timeshare ownership doesn’t just disappear when the owner passes away. Instead, it becomes part of their estate, meaning it can be willed to their descendants or passed down automatically according to inheritance laws.

That said, not all timeshares are the same, and different types of timeshares may be subject to different policies. For example:

• Deeded timeshares function like traditional real estate. Because they are real property, they can be inherited.
• Points-based timeshares and right-to-use timeshares act more like club memberships or long-term leases. Thus, they may not automatically pass to the deceased heirs.

Keep in mind that just because you inherit a timeshare doesn’t necessarily mean you have to accept it. As the beneficiary, you can choose to accept, sell, or, in some cases, disclaim the inheritance.

The Legal and Financial Obligations of Inherited Timeshare Ownership

When you inherit a timeshare, you don’t just inherit a lifetime of vacations; you also inherit the associated ongoing costs. These usually include:

• Annual Maintenance Fees: These ongoing fees cover things like property upkeep, amenity updates, and staff payroll.
• Annual Dues: Sometimes used interchangeably with annual maintenance fees, annual dues differ in that they generally apply only to points-based timeshares and cover upkeep at multiple timeshare properties.
• Special Assessments: These are intermittent costs that cover major repairs or renovations.
• Property Taxes: These only apply if you inherit a deeded week.

These mandatory fees must be paid whether or not you actually use the timeshare. Moreover, they tend to go up over time. In short, if you accept the inheritance, it generally entails taking on the financial obligations that go with it.

Can’t afford to take on these responsibilities? You may have options. If you don’t want to accept the inheritance, you may be able to file a disclaimer of interest with the estate executor or probate court. Keep in mind that you must file the disclaimer within a specific window of time, and you cannot have used the vacation property or otherwise benefited from the inheritance. However, if properly disclaimed, the timeshare will revert to the estate, and the beneficiary will no longer bear responsibility for it.

Should you choose not to accept your inheritance, act quickly. Resorts don’t stop billing the estate just because you don’t want the timeshare. So don’t put it off!

What Are Some Frequently Asked Questions and Common Points of Confusion Surrounding Timeshare Inheritance?

Timeshare inheritance often takes beneficiaries by surprise. The timeshare company may start reaching out to you unexpectedly. Maybe you’d forgotten all about the deceased’s timeshare. Navigating your inheritance can be especially overwhelming when dealing with the death of a loved one, but we are here to help. Here are some frequently asked questions and common points of confusion surrounding timeshare inheritance:

• My parent willed me a timeshare, and I don’t want it.: You might assume you’re stuck with your timeshare inheritance. However, this isn’t necessarily the case. You may be able to legally refuse the timeshare.
• I thought the timeshare agreement would expire when my relative passed. Why am I getting bills?: A deeded timeshare contract doesn’t expire; it is owned in perpetuity. Thus, if the testator owned a deeded timeshare, the resort will continue to bill the estate until ownership is relinquished.
• My siblings and I inherited the same ownership. Who is responsible?: While shared timeshare inheritance can complicate billing and the decision-making process, legal sales or transfers can help to simplify matters. In matters of shared inheritance, it’s always a good idea to consult a qualified estate attorney.

What Are My Options When I Inherit a Timeshare?

Every instance of timeshare inheritance is unique. However, most beneficiaries choose one of four ways to proceed:

Accept and Use the Timeshare

Do you like to vacation frequently? Are you sick of staying in cramped hotel rooms? Timeshare ownership isn’t for everyone, but if luxurious annual vacations are something you’d enjoy, it might be for you. If you decide to accept the timeshare, contact the resort or timeshare resort developer to make sure the account is in good standing, complete the transfer paperwork, and update the records. Once you finalize the transfer, you can start using the timeshare and enjoying all the benefits the previous timeshare owner enjoyed.

Legally Disclaim the Unwanted Timeshare

If you wish to refuse the timeshare, you can do so by filing a disclaimer of inheritance. As mentioned, to be honored, this document must be filed before you use the timeshare. Once the disclaimer is successfully processed, the timeshare will revert to the resort or remain with the estate.

The process of filing a disclaimer of interest can vary widely by resort and state. Thus, it is advisable to seek legal assistance from an estate planning attorney before you proceed.

Gift or Rent It Out

Depending on the resort’s popularity, renting out the timeshare can be a viable way to offset maintenance fees and even turn a small profit. Alternatively, some heirs choose to gift the timeshare to a family member who might stand to get more use out of it.

List the Timeshare on the Resale Market

If you don’t want to keep, disclaim, gift, or rent your timeshare inheritance, your best option is to list it on the resale market. You can do this yourself, or you can choose to work with a timeshare advertising service or resale brokerage.

Why Work with Fidelity Real Estate?

Navigating the resale market can be complicated. This is especially true when the timeshare you’re selling is inherited. However, working with an experienced resale brokerage like Fidelity Real Estate can help to streamline the process and maximize your chances for success.

As a fully licensed real estate brokerage specializing in timeshare resale, we can help you with every step of the selling process, from pricing to listing to negotiations and transferring ownership. And as a dedicated member of ARDA with an A+ rating by the BBB and over 25 years of experience, we can give you peace of mind along the way.

Fidelity has helped thousands of unhappy timeshare owners, including timeshare heirs, successfully sell their timeshares on the resale market. So what are you waiting for? If you’re ready to say goodbye to your unwanted timeshare inheritance, fill out the form below to initiate the process, or call us at 1-(855)-291-3901 to get in touch with one of our licensed timeshare specialists directly.