Can You Be Forced to Inherit a Timeshare? A Comprehensive Guide

The companies behind timeshares often brand them as a win-win purchase for people who love vacations, but what if the owner dies? How about suing the heirs to accept the financial responsibilities of a timeshare?
Legalities, Costs & Ways Out of Inheriting a Family Timeshare
This guide details the legal issues, financial obligations and how to get rid of your timeshare inheritance. CancelTimeshareGeek is the industry leader in timeshare exits and — quite naturally — offers suggestions and alternatives for victims of timeshare inheritance.
What Happens to a Timeshare When the Owner Passes Away?
Upon the death of the titleholder, ownership of the timeshare would pass under a will or trust, the laws governing intestacy (if no will exists), which indicate where property passes otherwise and if probate is necessary. Here’s how it unfolds:
- Wills and Trusts: If the timeshare is a part of a will or a trust, it could possibly be handed down to whoever is named as the recipient in these authorized documents.
- Intestate Succession: If the owner dies without a will, their timeshare will be passed down according to the intestate succession laws in your state of residence and the next of kin are often children or other close family members.
- Co-Ownership: If the timeshare is owned in joint tenancy with another living person (like a spouse), it will automatically transfer to the one remaining owner after the other has died.
If it becomes the new owner in any of these situations, that party could acquire not only the property itself but also any financial obligations associated with it (e.g. maintenance fees and special assessments).
Can You Be Legally Forced to Inherit a Timeshare?
Short Answer: No one can force you to inherit a timeshare. But depending on the structure of the timeshare and actions taken by its inheritor, it can be a little more complicated.
- Transfer by Means of Probate Without Action: No one forces a person to inherit a timeshare. But if the timeshare is included in an estate that passes through probate and no action has been taken to reject the inheritance, you may be legally responsible for the result.
- Joint Owners and Contract Holders: If you signed the timeshare contract as a co-owner or are listed on a deed to property with someone who has died, you may have legal obligations now to make payments after the original owner’s death.
Understanding the Terms of Inheriting a Timeshare
Being the beneficiary of a timeshare means more than having access to a vacation property; an inheritor has some financial and legal ramifications they should be aware of. Key aspects include:
- Maintenance Fees: If you inherit a timeshare, maintenance fees are then shifted to your plate as these owners have to pay an annual set of fees. They tend to increase over time.
- Special Assessments: In addition, timeshare owners may have to pay special assessments for property repair or improvements.
- Mortgage and Loans: If the deceased has an outstanding mortgage or loans to pay off on the timeshare, you may be responsible for inheriting that debt.
Knowing these responsibilities is important prior to appointing a timeshare inheritance or not.
How to Decline or Refuse Inheritance of a Timeshare
Fortunately, if you do not wish to take on a timeshare financial obligation, you may be able to disclaim the inheritance. We call this process “disclaiming” an inheritance. Here’s how to do it:
- Inform the Estate Executor: If you find out that you are going to inherit a timeshare, tell the estate’s executor that you want to renounce it.
- File a Formal Disclaimer: You must file a formal disclaimer document with the probate court in many states. The disclaimer has to be in writing and usually must be done within nine months of the death of the owner.
- Use Legal Procedures: It is important to make sure that the proper legal process is utilized as an inappropriate disclaimer may lead to unwitting liability.
That should be as simple as disclaiming the inheritance – you refuse to accept ownership of this timeshare, and all its debt.
What Are the Financial Responsibilities of Inheriting a Timeshare?
If you are the recipient of a bequest timeshare, you will assume financial responsibility for it. These can include:
- Annual Maintenance Fees: These are usually a few hundred to several thousand dollars a year which vary not only based on the resort, but also dependent upon the unit.
- Special Assessments: If (almost always with resorts) major repair or upgrading of the property becomes necessary, then a one-time fee can be imposed. The surprises may come in the form of some very expensive tests.
- Mortgage Payments: If the deceased still owed money on the purchase of the timeshare, the remaining balance may need to be paid by the inheritor.
These financial obligations can carry on for years and so it is a decision you should think carefully about when deciding whether to accept the timeshare.
Can Timeshare Companies Pursue Heirs for Unpaid Fees?
When owners pass away, timeshare companies will often attempt to collect the unpaid fees from the estate or their heirs. While heirs are not necessarily liable for the debts of the deceased, they can be pursued if they inherit the timeshare and with it their financial responsibilities. Here’s how it works:
- Probate Estate: The timeshare company is likely to try to collect from the decedent’s probate estate. When there is a large enough estate, the estate can pay these fees to the guardian ad litem up front before any inheritance goes out to someone not incapacitated.
- Chasing Heirs: In the event that you are passed the timeshare and acknowledge it, at that point you also must pay any obligation or expenses connected with it.
Importantly do know that inheriting a timeshare by itself does not subject you to any previous debts unless of course you take the inheritance formally.
Legal Rights When Refusing a Timeshare Inheritance
By disclaiming a timeshare inheritance, that is the end of it because in doing so you are giving up any right to future claims by the timeshare company. This means:
- Your Fees are not your Liability: You shall be relieved of any and all future maintenance fees or special assessments once you disclaim the timeshare.
- Not Required to Sell: You are not asked to sell the timeshare or attempt a resale process.
The timeshare will still be a part of the deceased’s estate, and the estate could still be required to pay off any debts related to the timeshare.
What to Do If You Inherit an Unwanted Timeshare
You can also look at various options if you have already inherited a Timeshare and want to get rid of it. Some steps to take include:
- Look into Buy-Back Properties: A few companies have buy-back or deed-back properties that will actually buy your timeshare back from you. Naturally, though, most solutions are restricted.
- Resale Market: Sell the timeshare on resale market. But the timeshare market is typically weak, and you might only get a fraction of the original price when reselling.
- Hire a Timeshare Exit Company: If selling or getting rid of the timeshare is still challenging, you may also hire a timeshare exit company such as CancelTimeshareGeek. Our primary function is to lead consumers through the complicated legal labyrinth of timeshare cancellation.
Alternatives to Inheriting: Selling or Exiting a Timeshare
You may want to consider other options for taking possession before you actually inherit that timeshare. Some options include:
- Sell the Timeshare Before Time: If you can, tell the estate executor to quickly sell that timeshare before ownership changes hands. Most of the time you will have to sell it at a loss as resale prices are very low for timeshare.
- Deed-Back Programs: A few resorts have deed-back programs, which allows owners to return their timeshare back to the resort. I would suggest you consider this before inheriting the timeshare.
- Timeshare Exit Companies: Find a professional timeshare exit company that can negotiate with the resort or find legal grounds for cancellation. If you use CancelTimeshareGeek, we will work with you to determine the solutions that would help your family avoid the cost of unwanted timeshares.
