Timeshares have been a popular vacation option for many, offering people the chance to enjoy a shared property at a fraction of the cost of ownership. However, if you inherit a timeshare, the situation can be more complicated than simply taking over a vacation home. Here’s what you need to know about inheriting a timeshare and what to do if you don’t want it.
What Is a Timeshare?
A timeshare is a shared property ownership agreement in which multiple people hold rights to use the property at specific times of the year. The most common types of timeshares are “deeded” and “right-to-use” agreements.
- Deeded Timeshare: This is similar to owning a fraction of the property. You own a specific portion of the property for a set period, and it’s typically passed on to heirs when the owner dies.
- Right-to-Use Timeshare: This gives you the right to use the property for a certain period of time but does not grant ownership. These contracts are usually for a set number of years, after which the right to use the property expires.
Inheriting a timeshare can be a complex process, depending on the type of timeshare and the terms of the agreement.
What Happens When You Inherit a Timeshare?
When you inherit a timeshare, it becomes part of the estate and typically needs to be addressed during probate. The first step is to determine the type of timeshare you’ve inherited and review any associated documents. Some of the most important details to look for include:
- Is the timeshare paid off? If the previous owner still had an outstanding balance, you may be required to take on the payments.
- What are the annual maintenance fees? These fees can add up quickly, and if you inherit a timeshare, you may be responsible for paying them. Maintenance fees can range from a few hundred to several thousand dollars per year.
- What are the specific terms of the timeshare? Review the contract to see if there are any clauses that could affect your ability to transfer, sell, or give up the timeshare.
What to Do If You Don’t Want the Timeshare
Inheriting a timeshare that you don’t want can feel overwhelming. However, you do have options, and it’s important to act quickly to avoid being stuck with the property and its associated costs. Here are the steps you can take:
Refuse the Inheritance
The simplest option if you don’t want the timeshare is to refuse the inheritance. In most states, you can disclaim the inheritance, which means that you legally reject it. If you decide to refuse the inheritance, you need to file a disclaimer with the probate court. This will prevent you from assuming responsibility for the timeshare or its related debts.
Sell or Transfer the Timeshare
If you don’t want the timeshare but still want to make the most of it, you may choose to sell or transfer it. However, selling a timeshare can be tricky. The resale market for timeshares is notoriously difficult, with most timeshares losing a significant portion of their value. You may also need to work with a broker who specializes in timeshare resales, as many real estate agents are unfamiliar with the market.
If you want to transfer the timeshare to another family member, you’ll need to follow the transfer process outlined in the contract, which may include fees. Not all timeshares are transferable, so be sure to check your options before proceeding.
Consider Renting It Out
Some timeshare owners choose to rent out their unit to cover the maintenance fees. Renting the timeshare can help offset the cost of ownership and may provide some relief if you don’t want to use it yourself. Many timeshare companies have programs that allow owners to rent their properties, but be aware of any rules or restrictions that may apply.
Contact the Timeshare Company
If you’re unsure about your options, contact the timeshare company directly. Some timeshare companies may offer to buy back the timeshare or allow you to surrender it, especially if the timeshare has little resale value. Be wary of third-party companies that promise to buy back your timeshare for a fee, as they may be scams.
Consult a Lawyer
If you’re struggling to navigate the complexities of timeshare inheritance, it may be helpful to consult a lawyer. An attorney can help you understand the specific terms of the timeshare agreement, advise you on the best course of action, and assist with any legal processes such as disclaiming the inheritance or transferring ownership.
Be Cautious of Timeshare Scams
Unfortunately, timeshare scams are rampant, especially for people who are looking to offload unwanted timeshares. Scammers may promise to help you sell or give away your timeshare for a fee, but they often take your money without providing any real service. Always do your research before signing anything or paying any fees to a third-party company.
By carefully reviewing the terms of the inheritance and exploring your options, you can decide whether to keep, sell, transfer, or disclaim the timeshare. If you don’t want the responsibility, make sure you act quickly to avoid unexpected costs or liabilities.
If you’re unsure what to do, seeking professional advice from an attorney or financial advisor can provide valuable guidance and help you make the best decision for your circumstances.
Sources:
- “What to Do If You Inherit a Timeshare.” Consumer Reports, https://www.consumerreports.org.
- “Inherited a Timeshare? Here’s What You Need to Know.” Timeshare Exit Team, https://www.timeshareexitteam.com.
- “What Happens When You Inherit a Timeshare?” Investopedia, https://www.investopedia.com.
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This article is for informational purposes only and should not be considered legal advice. Consult with a qualified attorney or estate planning professional for personalized guidance.
