Dear Liz: You recently answered a question about the consequences of giving up a timeshare. What are the possible consequences if a timeshare is held until the owner’s death? What is the effect if it is included in a will or trust? If none of the potential heirs want it, what is the effect of not mentioning it in the will or trust? Can the company sue the prospective inheritors even if it were to go into default? What I’m struggling to get at is what are the best options for handling it, depending on the desire of the prospective inheritors?
Answer: Timeshares typically have “in perpetuity” clauses that require owners to pay maintenance fees for life, and the requirement passes to anyone who inherits the timeshare.
Fortunately, no one is forced to accept such an inheritance. Potential heirs can “disclaim” or refuse to accept the timeshare after your death.
How your heirs go about this depends on the type of timeshare. If the timeshare includes a real estate deed, or if it’s specifically mentioned in your will or trust, then your heirs may need to file a written disclaimer with the probate court. If the timeshare was sold as a “right to use” contract, which is more common these days, the heirs can have the executor contact the resort to tell them the owner has died, so the resort can start the process of taking the timeshare back.
This all assumes that you haven’t already added the heirs’ names to the timeshare deed, if one exists. Sometimes, timeshare salespeople promote this option as a “convenience,” which it is — to the timeshare company, because it can hold the heirs responsible for the fees, whether they want the timeshare or not. To fix this, you can ask the resort developer to remove the additional names from the deed. If the developer balks, consider contacting an attorney.