While timeshares may help the timeshare owner to enjoy a certain amount of leisure each year, they are a headache for estate planning purposes.
Even though a deeded timeshare is an interest in real property, it is really more of a recurring luxury expense than it is an asset.
Let us consider some issues raised by timeshares: Ongoing maintenance and property tax expenses; hard to sell; sometimes undesired as an inheritance; and how they are transferred at death.
The owner, or the deceased owner’s estate, is liable for all timeshare maintenance fees and real property taxes. These continue after death and can pile up if unpaid; regardless of whether anyone uses the timeshare, your estate remains obligated to pay these expenses. A decedent’s estate will often wish to sell its timeshares.
Unfortunately, timeshares are very difficult to sell. Perhaps the best place to start is with the timeshare company itself.
Sometimes, for a large fee or commission, they can assist in selling an existing timeshare. Otherwise, other possible avenues are to lease the timeshare, cancel the timeshare, or sell the timeshare through a timeshare market.
Aside from leasing, the other options all involve losses. So essentially, the timeshare is more of a luxury expense than an asset.
Timeshares, if they are deeded (as opposed to leased) are real property interests. Accordingly, once the owner dies, just like owning real property, the laws of the state where the timeshare is located control....