The passing of a loved one brings emotional challenges, and for families with vacation properties like timeshares, it can also bring financial ones. One common question arises: what happens to a timeshare when the owner dies? The answer depends on the type of timeshare, the terms of the contract, and whether the heirs choose to accept the inheritance.
In this article, we’ll walk through what happens to a timeshare when someone passes away, whether it automatically transfers to children, and what options are available for refusing ownership if it’s not wanted.
In most cases, yes. Timeshares, especially deeded timeshares, are treated like real property. That means they typically become part of the deceased’s estate and can be passed to heirs either through a will or the laws of intestate succession (if there’s no will).
However, inheriting a timeshare isn’t automatic. Just because a child is next in line doesn’t mean they are legally obligated to accept the timeshare or its ongoing costs. And while the inheritance might sound like a gift, many discover the costs quickly outweigh the benefits.
If the timeshare owner held a deeded interest, that ownership is treated like real estate. Upon their death, the timeshare usually goes through probate, a legal process for settling the estate. During probate, the property may be formally transferred to the designated heir(s), who then assumes responsibility for all associated fees and obligations.
These timeshare costs can include ongoing maintenance fees (which often increase annually), special assessments, property taxes, and loan balances, if any.
If the heir does not want the timeshare, they must formally decline the inheritance through a legal process – something we’ll touch on below.
Unless stated in the contract, most timeshares do not end upon the owner’s death. In fact, timeshare contracts, especially deeded and right-to-use agreements, can extend well beyond a single lifetime. Some even include a clause that passes the ownership to the next of kin automatically unless action is taken to prevent it.
However, some older or right-to-use timeshares may expire after a set number of years. In such cases, the timeshare could eventually terminate, but most active contracts are designed to carry on unless legally disclaimed.
Yes, you can. If you’re next in line to inherit a timeshare but don’t want the ongoing responsibility, there is a legal process to avoid taking it on. This involves filing a Disclaimer of Interest, which is a formal refusal to accept the property.
To learn the exact steps and legal details on how to do this, check out our companion article: How to Legally Refuse a Timeshare Inheritance.
It’s important to note that:
If you don’t file a disclaimer, and especially if you start using the timeshare, you will end up legally responsible for all associated costs, even if you never wanted it in the first place.
The best way to avoid inheriting a timeshare contract is through proactive planning. Families should discuss timeshare ownership while estate plans are being created. If you know your parents or relatives own a timeshare and you’re listed in their will, talk with them about their intentions and let them know if you’re not interested in taking it on.
Estate planning tools such as trusts or explicitly excluding the timeshare from the will can also help avoid unwanted inheritance.
If you’re already in the position of being named in a will or you’re next in line to inherit, time is of the essence. A conversation with a qualified estate attorney will help ensure you follow the proper process and avoid getting stuck with lifelong financial obligations.
Timeshares often feel like assets, but they can quickly become liabilities for unprepared heirs. Understanding what happens to a timeshare after someone dies is the first step in making informed decisions, whether you plan to keep it or legally decline it.
If you or a family member are navigating a timeshare inheritance, our team is here to help. Contact Timeshare Specialists for expert advice and personalized support in reviewing your options, or view our services here.
Yes, timeshares, especially deeded ones, can be passed to children or other heirs through a will or estate process. However, inheriting the timeshare is not automatic, and heirs can legally refuse it.
A deeded timeshare becomes part of the deceased’s estate and usually goes through probate. If accepted, the heir takes on all associated fees and obligations, such as maintenance fees, taxes, and special assessments.
Not usually. Most timeshare contracts, including deeded and right-to-use types, do not end upon the owner’s death unless stated explicitly in the contract. Ownership can be passed to heirs and continues unless disclaimed.
Yes. If you do not want to accept a timeshare, you can file a Disclaimer of Interest, which legally declines the inheritance. This must be done within a certain time frame and before using the property in any way.
Generally, heirs have nine months from the date of the original owner’s death to file a Disclaimer of Interest. This period may vary by state, and minors may have additional time.
The best way to avoid inheriting a timeshare is through estate planning. Heirs can also formally disclaim the property or ensure they are excluded from the will or trust that governs the timeshare.
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