My husband and I are getting older and starting to get serious about estate planning. We asked our kids if they wanted our timeshare, but they would rather not inherit it or the responsibility for paying ongoing maintenance fees. What can we do to ensure they don't receive this unwanted inheritance?
Great question! Even after so many memorable family vacations, there's no guarantee your children will want to inherit your timeshare. Lifestyles change over generations, and a timeshare may not fit your children's way of vacationing.
In the best situation, the decision of timeshare inheritance is made at the time of purchase and written into the contract. Timeshare agreements usually contain a "perpetuity clause," saying that the timeshare is valid for the lifespan of the original owner. When the owner dies, the timeshare becomes part of the estate. The inheritors of the timeshare become the new owners, and they are obligated to take over the timeshare fees.
If you want to avoid this issue, name your heirs co-trustees of your timeshare. A trust gives heirs the option to decide to keep the timeshare, sell it, or abandon it. It frees them of ongoing or unpaid fees.
You also can leave your kids off the timeshare deed entirely. This way, you avoid the additional costs of setting up a trust. It's important to tell your children that if they ever become your financial custodian, they should pay the timeshare maintenance fees with your bank account, not theirs.
Okay, maybe you didn't do all that upfront. If you named your kids as inheritors of your timeshare, or they are set to inherit it by default, there's still a way out for them. They can file a written refusal to accept the timeshare called a Disclaimer of Interest. Generally, a letter or statement is used to let all interested parties know that the heirs have no interest in the timeshare.
Specific timeframe requirements exist for submitting the disclaimer. So, tell your kids to check with your state laws. The disclaimer should be filed with the probate court handling your estate. An estate attorney can help your kids with the paperwork.
Alternatively, if you aren't using it anymore, you can start the process of selling your timeshare now, or gifting it to someone who does want it. This will be one less thing to worry about later.
We would love to hear from anyone who has inherited a timeshare (or avoided inheriting one). If you have experience to share, please leave a comment below.
