Q: My dad passed away recently and now my mother is the sole owner of a timeshare in Florida. We have tried to sell it, give it back to the company and donate it, all to no avail. We live in New Jersey.
Is it true that if the deed states that she owns it “in perpetuity?” The document that they received when they bought the timeshare states that the timeshare “benefits and obligations hereunder shall inure to and be binding upon the heirs, executors, administrators, successors and assigns” of my parents.
Does that mean that her children will still be liable for the timeshare fees and maintenance when she dies?
A: Unless your parents put your name on the deed to the timeshare property in Florida, you will not be held responsible for the timeshare when your mom dies.
When a person buys a timeshare, that person becomes responsible for all fees associated with the purchase. When buying a timeshare in a development, people usually only focus on the upfront cost. They sometimes forget that they will have to pay the annual fees and dues associated with the timeshare development.
As the economy has been in a prolonged period of uncertainty, many people have shied away from various types of spending, including timeshares. If your timeshare is a participant in a hotel program that allows for the exchange of the use of the timeshare for points, your mom may consider obtaining points in exchange for using the timeshare, especially if she and no one in the family is using the timeshare. Check with the timeshare company to determine what options you have in using the timeshare that may be short of selling it.
While getting points in a hotel program doesn’t solve your issue in the long run, in the short term it may give you something you and your family can use elsewhere or for other things while you sort through the situation.
Looking ahead, if you don’t want the timeshare at the time your mom dies, you can elect not to accept that inheritance. Just because your mother has indicated that you should receive something from her estate, doesn’t mean you have to accept it.
If no one accepts the timeshare at the time of her death, her estate would continue to own it and it would become a liability for her estate. If she has assets in her estate at the time of her death, the executor of her estate may have to use those assets to continue payments on the timeshare.
That’s where the language in that deed comes into play. When your mom dies, her estate becomes responsible for the timeshare as her “successor.” That language does not put you in the middle of debts and obligations that your parents might have incurred.
It would be wise for all of you to sit down with the person that prepared her will or an estate planner to determine what you should do with the timeshare at the time of her death.
You could continue to use the timeshare, see what other options you have for using or trading the timeshare use on a yearly basis, and continue to advertise the timeshare for sale through the company that handles the management operations of your timeshare development, Craigslist.org, and other vacation sale sites, and even real estate brokers in your area.
In some locations, selling a timeshare can be difficult in this market, but review your options now and see any other ideas pop up. It may not be a good year to sell the timeshare now, it could be better a couple of years down the line, especially if the timeshare is in a premium location.
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Disclaimer
Even though your timeshare may pass onto your children upon your death, they aren’t forced to accept it. By completing a written disclaimer document, your children can decline the timeshare. Specific requirements may differ among states, but a letter or statement refusing the timeshare is generally acceptable. Your children only have nine months from the date of your death to submit the disclaimer to the court. Once the disclaimer is approved, it’s irrevocable. The asset will pass to the next beneficiary in line.
From what I have read you don’t HAVE to accept it. I plan on having estate attorney refusing after my dad passes. I think this should be against the law that you are automatically stuck with something you never wanted or signed up for!!!!
What if there are no other beneficiaries in line behind me? My Mom just passed away and my Father died 9 years ago. Only my sister and I were named in my Mom’s will as heirs. Neither of us want their timeshare in Bluegreen. I’m the Executor of the estate and I’m doubting I will be able to give it away. Any hope that we can avoid having to meet the yearly oblligations?
Oh I agree that should totally be against the law. Good luck Phil, please let us know how that turned out for you. I’m afraid I will be in the same situation.
Timeshares are horrible. My parents bought one with good intentions for the kids. Now we have been fighting the company and never getting a straight answer. We stopped paying the maintenance fees. Now my parents (both DEAD) got letters stating their TS was being foreclosed due to non payment of fees. I was told that we (the kids) will not be impacted by this (liens of other property) because it was never technically in our names, nor specifically in the Will. The deed states just my parents names.
I’m not sure what to believe. Yes, I know contact a lawyer, but what if that’s not in the budget for me now?
Put it in the budget, even if you have to borrow money to do it. I’ll be in the same situation, but budgeting a lawyer to shut this down completely will be better than any potential debt or lawsuit years later from a loophole the timeshare company uses.
Any property is only worth what someone will pay for it. If you have to pay someone to take the timeshare off your hands, it has negative value and should be treated as a debt by the estate.
What if the estate buys an annuity to fund the recurring annual timeshare fees? Would that allow the estate to disburse the remaining assets to the heirs? If not, does the estate have to stay soluble and remain open indefinitely, without disbursing assets to the heirs, in order to pay timeshare fees in perpetuity?
Timeshares should be illegal….or at least howhey are set up should be. No one should ever enter into a contract like this as there are little to no ways out. It’s extremely selfish to enter into these contracts because family takes on this burden when you die.
Stupid law to let Timeshare fool people into this scam…It is a burden ..I own a timeshare ” Worldmark by Wyndham” I paid it in full and It gave me no enjoyment … just headache. …I do not want to pass it on to anybody to make their lives miserable..The maintenance fee keeps on getting higher every year..
I feel so betrayed by hotel chains like Marriott that took advantage of us baby boomers. I wish all the timeshare holders could get together to put them out of business.
how about some class-action lawsuits against timeshare companies?
I am listed on the deed for my parents timeshare. What will happen when they both pass away, will I somehow be forced to incur this liability? How can it possibly be legal to be liable for something which I never agreed to, or signed? My rights will be violated if I am forced into this – I am a free individual or am I not?
Brendan,
If you’re listed on the deed, then you’re an owner of the timeshare. Is it possible that your parents listed you without your knowledge or permission? Did you sign the deed? Can you prove that you’ve never used the property, contributed to its upkeep, etc?
Why don’t you start by having a conversation with your parents about how this happened, and let them know you have no interest in being on this property. If you are on the deed, and they agree that you shouldn’t be, you may be able to quit claim the timeshare back to them. Please consult with an attorney for more details.
Best,
Ilyce Glink, Publisher
ThinkGlink.com
My dad passed on 4 years ago. I just found out that my mom is having blood pressure issues because they have a timeshare that they signed up for in 1996. I just found out about it, never knew they had it. They never used it, and apparently, didn’t pay for it very often either as they owe $32,000. She has nothing… only a few household items, rents a house, gets by on SS. She can’t afford this… she has been in communication with them, sending them Dad’s death certificate. There are 3 of us children, she has no will… can we be held responsible for her debts? or… how can we get this cleared up before it kills her? It’s in Branson, Missouri.
Kaylynn,
Nope. You cannot be held responsible for this timeshare after her death. She should let them chase her – she has nothing to lose. They would have to sue her, and for what? Nothing. Once your mom dies, they will try to get you to agree to pay off this debt, but you don’t have to. This “asset” might flow to you, but you don’t have to accept it. As long as your name is not on that contract, it is not your responsibility – no matter what they tell you.
For more details, please consult with an estate attorney.
Ilyce Glink, Publisher
I own a timeshare and my children do not want the responsibility of keeping it after my passing, as that we have had that discussion. I cannot sell it or give it back to the company. I keep up the dues and let family use it. However, I own a home I don’t want the kids to lose the estate due to a timeshare company. Can I gift the timeshare to someone not an heir in the will to keep it separate ?