Time share question

[SecondCor521]

Hi,

My father bought a time share a month or two ago from one of the upscale outfits. He is 82 and has three children - my two older sisters and me.

I am not keen on timeshares but I know a few people who are.

There is language in the contract, as I expected, that he can will his timeshare to anyone and that he can't ever cancel the timeshare without the timeshare's permission.

I haven't talked with my sisters yet about their opinion about the timeshare. If either of them want it when he passes, then I'm happy to let them have it.

If none of us want it and we just refuse to inherit it, can we get out of it that way? I do not understand how they could either insist we pay or ding our credit since none of the three of us signed any contract with the company.

I am familiar with law firms that will help you out of timeshares, but they sound expensive. I am also familiar with the idea of selling timeshares on the secondary market.

Thanks for any advice.

 

[Brat]

I think you can renounce any inheritance if you do so promptly. Consult an estate attorney.

 

[FI_RElater]

it’s called “disclaiming” an inheritance...
and should be done in writing, and can be for all ... or only partial parts of any inheritance (which should be done in this case for the time share). Each state has its own rules as to timelines...and care should be taken that once disclaimed that they DON’T recognize any future benefit... or else the timeshare company might be able to declare that they didn’t truely disclaim and might be on the hook for future costs.

 

[SecondCor521]

I have investigated disclaimers and have no concerns about doing a partial disclaimer for the timeshare if either of my sisters want it.

But what happens if none of us want it. Can all three of us disclaim it? If so, what happens to the timeshare? Can we send it to the state unclaimed property office somehow?

 

[CaliKid]

It's truly upscale it will have some value so can be sold after death. Can't technically renounce it, as far as I know, but some companies may take it back. Whatever he paid figure you can sell it for 20% of that on the open market on Redweek or similar. They shouldn't sell a timeshare to an 82 year old. Maybe sue them for elder abuse!?

 

[Teacher Terry]

If he paid cash you can just give it away if you can't sell it.

 

[zinger1457]

You may want to go to the TUG forum (https://www.tugbbs.com/forums/index.php) and research or ask your question there, I'm sure there are members of the timeshare forum that have dealt with your situation.

If I was you I would have a long talk with my siblings to determine if my dad needs some help with his financial decisions. An 82 year old spending a lot of money for an upscale timeshare should raise a lot of flags.

Most timeshares have a rescind period after signing the contract but it's usually only a couple weeks so probably not much help in your case.

 

[CaliKid]

If he paid cash you can just give it away if you can't sell it.

Not always. Sometimes people have to pay somebody to take over the annual fees. It's sold as an asset but is really a liability.

 

[cathy63]

I have investigated disclaimers and have no concerns about doing a partial disclaimer for the timeshare if either of my sisters want it.

But what happens if none of us want it. Can all three of us disclaim it? If so, what happens to the timeshare? Can we send it to the state unclaimed property office somehow?

If everyone named in the will disclaims an inheritance, then I believe that part of the estate should be treated as if you all predeceased him and he died intestate. Check the law in the state where he lives to find out what happens in that case. It probably passes first to his further descendants (i.e. grandchildren and great-grands), then siblings and their descendants, cousins and their descendants, etc, until the executor finds someone who is willing to take it. It's very unlikely to go to the state as you typically have to exhaust the entire family tree before that happens and there's probably a distant cousin somewhere who would accept it.

 

[Ready]

The fact that one has to go to so much effort to disclaim a timeshare after one's death should speak volumes as to whether these things have any real value to them. Of course this only matters before one signs a contract.

 

[CaliKid]

If everyone named in the will disclaims an inheritance, then I believe that part of the estate should be treated as if you all predeceased him and he died intestate. Check the law in the state where he lives to find out what happens in that case. It probably passes first to his further descendants (i.e. grandchildren and great-grands), then siblings and their descendants, cousins and their descendants, etc, until the executor finds someone who is willing to take it. It's very unlikely to go to the state as you typically have to exhaust the entire family tree before that happens and there's probably a distant cousin somewhere who would accept it.

If you disclaim it goes to your kids. That's not a good solution. Plus, in theory, the timeshare could still go after the estate for the annual fees.

 

[Ready]

Plus, in theory, the timeshare could still go after the estate for the annual fees.

I guess you could say it's the gift that keeps on taking!

 

[Texas Proud]

I would not worry about it.... as long as you plan on settling the estate quickly there is nothing they can do about it...

They cannot force you to take over ownership... if the estate is settled they cannot force the estate to pay the annual fees...


However, I would send the timeshare a letter saying that nobody wanted to take ownership and you will not be paying any more fees if I were the executor....

 

[capjak]

It it is Hilton/Marriott/Vistana (starwood)/Hyatt/Disney/Wynham/Worldmark and a few others it is has $$ value.

I own Starwood/Marriott/Disney/Hilton all of which I bought resale from people like yourself that did not want it anymore. Dependent on where it is located and what it is it has value in resale or in rental.

Timeshare User Group is a good forum to ask questions. Redweek.com is a good site to give you an estimate of resale value for the timeshare.

Added: do not pay someone to get rid of the timeshare if it is a major one it will sell. Worst case if it is in a good location or system with good season you can rent them to people for twice the maintenance fee or equal to the maintenance fee if you or sisters decide not to use it.

 

[SecondCor521]

You may want to go to the TUG forum (https://www.tugbbs.com/forums/index.php) and research or ask your question there, I'm sure there are members of the timeshare forum that have dealt with your situation.

If I was you I would have a long talk with my siblings to determine if my dad needs some help with his financial decisions. An 82 year old spending a lot of money for an upscale timeshare should raise a lot of flags.

Most timeshares have a rescind period after signing the contract but it's usually only a couple weeks so probably not much help in your case.

Thanks for the TUG reference.

I've already had the long talk with my siblings (and my Dad) when I found out about the timeshare purchase. He has declined somewhat but is still competent and was able to articulate that he still wanted it after we explained the drawbacks to him.

The rescission period was only a few days, but I discussed it with my sisters during that time frame, clarified my concerns to my Dad about it, and he both (a) still wanted to buy it, and (b) was competent to make his own decisions. So we let the rescission period pass.

 

[SecondCor521]

It it is Hilton/Marriott/Vistana (starwood)/Hyatt/Disney/Wynham/Worldmark and a few others it is has $$ value.

I own Starwood/Marriott/Disney/Hilton all of which I bought resale from people like yourself that did not want it anymore. Dependent on where it is located and what it is it has value in resale or in rental.

Timeshare User Group is a good forum to ask questions. Redweek.com is a good site to give you an estimate of resale value for the timeshare.

Added: do not pay someone to get rid of the timeshare if it is a major one it will sell. Worst case if it is in a good location or system with good season you can rent them to people for twice the maintenance fee or equal to the maintenance fee if you or sisters decide not to use it.

It is one of the ones you listed.

It is one where he gets X points per year that he can use at any of their worldwide properties. I assume but didn't verify that the points required for a given trip depend on the property and the season.

He's already got his first timeshare trip in mind (a two week trip to Israel), so I think I'll see how that works out.

At this point I view it as a moderately overpriced prepaid obligatory vacation sinking fund. Or maybe the vacation form of an SPIA.