Going on vacation is the highlight of the year for many people. Some people take it a step beyond normal vacation planning and opt to purchase a timeshare. These are legally binding transactions in which the purchaser buys a share of a vacation property.
The contracts for a timeshare purchase typically include a perpetuity clause, which means that the ownership of the property doesn’t expire when the owner dies. Instead, the timeshare and the obligations it comes with transfer over to the heir if the timeshare isn’t covered in the estate plan.
Some heirs and beneficiaries would rather not be stuck paying endlessly increasing maintenance fees that come with timeshare ownership, so they don’t want to inherit it. This is possible, but only if the situation is handled properly. Understanding what to do can help anyone in this position.
Heirs and beneficiaries have the option to disclaim
Once the owner of the timeshare dies, the heir or beneficiary to it has to determine what to do with it. The options are severely limited if the heir’s name is on the deed. If the decedent was the only person listed on the deed, it’s possible for the heir or beneficiary to walk away from it.
The heir or beneficiary can disclaim the timeshare if they don’t want to be responsible for the never-ending expenses associated with it. This must be done swiftly, in writing to the jurisdictional probate court and before the timeshare is used by any heir.
Dealing with a decedent’s estate can be challenging, but it’s necessary so all heirs and beneficiaries can receive what they’re due. Working with someone who’s familiar with these matters may be beneficial to ensure everything is handled properly.
