Why are timeshares are one of the worst assets to Inherit?? Timeshares are often marketed as affordable vacation ownership. However, what happens when they become part of an estate? Many heirs are surprised to learn that timeshares do not function like traditional real estate assets—instead of inheriting a valuable investment, they may be left with ongoing maintenance fees, restrictions on resale and unexpected legal obligations.
Understanding the downsides of inheriting a timeshare can help beneficiaries decide whether to keep, sell, or disclaim the property.
Unlike traditional real estate, timeshares come with mandatory fees and restrictions, making them a financial liability rather than a valuable inheritance.
One of the most significant downsides of inheriting a timeshare is the never-ending maintenance fees, which must be paid whether you use the property. These fees:
Failure to pay can result in collections, credit damage, or even foreclosure.
Many assume they can sell an inherited timeshare. However, resale is notoriously difficult. Timeshares:
Some heirs spend years trying to offload an unwanted timeshare, only to realize they are stuck paying fees indefinitely.
If a timeshare is deeded property, heirs become legally responsible for all associated costs. This means:
Even if a timeshare seems appealing initially, the long-term costs and restrictions can outweigh any perceived benefits.
Heirs are not required to accept a timeshare inheritance. If an estate includes an unwanted timeshare, beneficiaries can legally disclaim it by filing a formal refusal with the probate court before taking ownership.
However, disclaiming must be done before using the timeshare or making any payments, as this can be seen as accepting ownership.
Some resorts allow heirs to return the timeshare through a "deed-back" program. This involves:
Not all resorts offer this option; some may charge a fee for releasing ownership.
If a resort refuses to take back the timeshare, an estate planning attorney can help explore other legal options. This may include:
Many families assume they must accept an inherited timeshare. However, it may be possible to legally remove this financial burden with the right approach.
While most heirs choose to avoid inheriting a timeshare, some may find value in keeping one under the right conditions. It may be worth keeping if:
However, long-term costs and restrictions should be carefully evaluated before deciding.
Inheriting a timeshare may seem like a valuable asset at first, but the ongoing costs and legal obligations often make it more of a financial burden than a gift. If you’re considering your own estate plan or handling a loved one’s inheritance, it’s essential to understand the true cost of timeshares and take steps to protect your family from unwanted financial responsibilities. At Vick Law, we can help guide you through the process, whether it’s planning for timeshares in your estate or helping heirs navigate timeshare challenges. Don’t leave your family with unnecessary burdens—schedule a consultation with us today to ensure your estate is managed properly.
Reference: Yahoo Finance (Aug. 16, 2024) “Inheriting a timeshare can be bad news. Here's why, and how to avoid it”