Welcome Inheritance or Unwanted Asset?
Do you own a timeshare interest and are you considering what will happen to it after you pass away? You may have purchased and enjoyed a timeshare in your younger years. But, as you plan your estate, it’s essential to consider that your beneficiaries could lack the same desire to own a timeshare or may even be without sufficient funds to maintain ownership of such an asset. You may want to think in advance about what will happen if your heirs inherit your timeshare interest. Consulting with a qualified timeshare attorney can be a good way to ensure that you consider all legal implications when developing an estate plan that includes a timeshare interest.
Even if you have enjoyed owning it, timeshares can be an undesirable asset for your potential heirs because they come with a unique set of financial, legal and practical considerations that can make managing them difficult. From high annual maintenance fees to the reality of limited resale value, timeshares are often considered illiquid assets that can have little financial gain, and potentially high costs, for beneficiaries in an estate plan. Furthermore, many timeshare contracts contain restrictions on transfers or require approval from other entities prior to transfer such that your heirs may be stuck with a unwanted timeshare inheritance without a good way to sell it to someone else.
David Nadelle, from Yahoo Finance, penned an informative article called “The Worst Assets To Inherit and How To Handle Them Promptly.” He addressed timeshares in the piece specifically, noting that;
“The one good thing about inheriting a timeshare is that it is already (partially) paid for. However, inheriting a timeshare means taking over a shared vacation resort, condo or property that won’t increase in value, that comes with annual fees and maintenance costs — and that includes strict regulations and flexibility concerns. Timeshares are often more of a headache than a relaxing adventure away from home, so those who are considering passing them down to another should find out first if the timeshare is even wanted and if not, make arrangements to disclaim it.”
Fortunately, there may be a way out: Disclaiming inheritance of a timeshare property through an attorney-drafted disclaimer of interest document. In many instances, a properly drafted disclaimer can allow heirs to reject their inherited timeshare interests without any tax implications or personal liability. By disclaiming inheritance of a timeshare through an attorney-drafted document, heirs can reject their inherited interests in order to maintain financial security and avoid personal liability for the asset. Discussing your estate plan with an attorney will provide insight on rights, responsibilities and other considerations regarding how to handle your worst assets. By doing so, you can avoid unnecessary burden on your loved ones who may not want to take on the responsibilities associated with owning a timeshare.
Understanding Your Timeshare Options
There are legal steps to take in order to ensure that everyone is taken care of and that nothing gets overlooked. The right legal counsel can help you understand how best to manage your assets before passing them on so there are no surprises. To ensure your heirs’ comfort and financial stability, it’s may be worth considering cancelling timeshare agreements prior to passing away. You can speak with your timeshare developer about options. If that leaves you unsatisfied or with more questions than answers, consulting with a qualified timeshare attorney may help you. You may have other options for divesting yourself of an unwanted timeshare interest while you are still living, or you may opt for another option: preparing a disclaimer of inheritance of a timeshare for your heirs so that this burden will not be passed on.
In conclusion, it’s always best to plan for the worst case scenarios in order to protect your heirs. If you have acquired a timeshare in the past, then carefully consider how it will be managed after you pass away. Consulting with an experienced timeshare attorney can help you make sure that happens.
Disclaiming inheritance of a timeshare may be a good way to ensure that your beneficiaries don’t have to bear the burden of managing and maintaining the asset.
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Led by attorneys J. Andrew Meyer and Michael D. Finn with over 75 years experience combined. The Finn Law group is a consumer protection firm specializing in timeshare related matters. For a free consultation either by phone or in office, please contact our offices at 855-346-FINN-LAW or email us at [email protected]. Follow us on Twitter to read more timeshare blogs.
