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Rejecting an Inherited Timeshare
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Rejecting an Inherited Timeshare
- December 7, 2021
Table of Contents
How to Reject your Inherited Timeshare Legally
There’s no doubt that the pain of losing one’s parents can be devastating. It becomes even worse when parents have left behind a lifetime of fees that won’t stop increasing. Indeed, this is the experience of some children after the passing of their parents, especially if the parents owned a timeshare.
Even though the children might have vacationed with their parents at the concerned resort a few times or more, they still might not be interested in taking up the ownership of the timeshare. This could be due to a variety of reasons.
For example, you might have heard of or read about how financially discomforting timeshare ownership can be—especially regarding the maintenance fees, assessment fees, and some other hidden fees that make timeshare inheritance more of a burden than a gift.
Therefore, if you are looking to get rid of your worries of inheriting your parents’ timeshare, this article will show you just how to do that. You will not only learn what to do after the timeshare might have been transferred, but you will also learn some preventive measures that parents can take in a bid to save their kids from the inheritance of their timeshare.
Are Timeshares Automatically Transferred to the Kids?
There have been claims that the ownership of a timeshare is bound to be inherited by default in the event of the owner’s death. That is, the timeshare owner’s heir automatically becomes the new owner, and consequently becomes responsible for paying all fees associated with the timeshare.
While this claim may be considered true, it is not entirely so. Yes, it is true that timeshare contracts normally come with a perpetuity clause. This clause provides that the property is owned for a lifetime and equally added to the owner’s estate after his or her demise, which suggests that whoever inherits the estate inherits the timeshare too.
However, what many people don’t know is that the child or children of a timeshare owner can refuse the inheritance of the timeshare if they don’t want it. They may only have to take certain steps to ensure that this is done legally. A later section of this article will discuss this.
Can the Parents Avoid the Timeshare Inheritance while Alive?
Yes! Parents have the chance to avert everything while they are still alive so their children don’t have to deal with another unexpected life headache. This is possible because the arrangement for timeshare inheritance is usually made at the time of purchase.
So, during the agreement phase, a timeshare-owning parent can do any of two things to help their children. One helpful move you can make is to make sure not to name your heirs inheritors. Instead, you name them your co-trustees. This way, the kids get to easily choose whether to keep the timeshare property or not. Moreover, they will not be tied to any unpaid or ongoing fees. A much better move, though, is to exclude the kids from the contract altogether.
How to Get Rid of your Unwanted Timeshare Inheritance
If you are a prospective inheritor of your parents’ timeshare and you don’t want it, rest assured that you have a legally backed means for you to renounce it. You need to note, though, that you will have a limited period of time—nine months—to reject the timeshare after you inherit it.
Likewise, it is important to note that this law will not be binding for someone who is below the age of 21 at the time. But once the concerned inheritor turns 21, the time begins to count down. In other words, the refusal of the timeshare has to take place within nine months of its inheritance, as long as the concerned heir is at least 21 years of age. This law may vary from state to state.
Now, to reject the timeshare, all you will have to do is file a written refusal known as Disclaimer of Interest. If you need help, you may consult your estate attorney to come to your rescue, especially when preparing necessary paperwork.
To make this much easier for you, we have prepared a general step by step guide below to give you a clear idea of how to renounce your unwanted timeshare inheritance:
• First, make up your mind, and don’t waver
The first step is to be resolute in your decision to disclaim the timeshare coming your way. By being resolute, you will be expected not to use the timeshare at all. Not even a brief visit to the place is advisable.
Wondering why? Well, the thing is, should you use the timeshare at all, you would no longer have the opportunity to legally renounce the property. More so, you may consequently become recognized as the new owner of the timeshare.
In addition, once you begin the process of disclaiming the timeshare, you will no longer be able to donate the property to charity or give it to a friend. In other words, the decision becomes permanent.
• File your disclaimer as swiftly as possible
Remember that you have only nine months to reject the inheritance. This simply means you need to act fast. You may need a qualified attorney to help with the paperwork.
Remember that the property renunciation laws may vary for different states. So, it is recommended that you check the laws of the state under which the given timeshare is bound.
The contract is also something you shouldn’t overlook. Make sure to read it carefully as soon as possible. This is essential because it helps you understand all that may be involved so that you won’t overlook a significant detail.
• Work closely with the estate’s executor
The executor of the estate is your go-to person for ensuring that the death certificate is sent to the appropriate quarters. You should ask the executor to send a copy of the death certificate the property management company. This helps you escape their demand for maintenance fees.
In case the timeshare property is under a mortgage, you can simply prevent foreclosure by requesting that the executor of the estate send a copy of the death certificate to the resort or bank.
During the filing of your disclaimer, the estate’s executor can be instrumental in getting you the property description. The property description is one of the things you need in filing your Disclaimer of Interest, which may be otherwise called Renunciation of Property.
Moreover, not only the timeshare company but also the executor of the estate will have to receive a copy of your disclaimer. Remember to make several copies and keep one for yourself for reference purposes.
• Make your family and friends aware of the renunciation
This is a crucial step. Make sure to inform your friends or family about your plans to disclaim the timeshare. They must know so that they can reject the timeshare in case it ever comes their way.
It is possible for a renounced timeshare inheritance to go to next person in line, if there is one. Therefore, such a person would be expected to take the same steps as the previous person. In short, whoever is next in line has to file his or her Disclaimer of Interest too.
Conclusion
As you can see, renouncing an unwanted timeshare inheritance can be as easy as that, although acting fast is key. However, parents are advised to avoid this entirely by never naming their kids as inheritors or by leaving them out of the timeshare contract.
As a potential inheritor, if by any chance, you missed the opportunity of disclaiming a timeshare inheritance, then you may still have some solutions at your disposal. You could choose to resell the timeshare, but note that this can be extremely difficult because timeshares are often almost valueless, as many of them are listed for a price as low as $1 on eBay.
We would recommend that you enlist the service of a timeshare exit company. But, be sure to hire a reliable one. There are many scammers out there taking advantage of distressed timeshare owners. This is why we always recommend timeshare exit companies that make use of the escrow payment option.
