Timeshares are a unique form of property ownership that allow individuals to share access to vacation properties—often for a fixed time period each year. While they may offer relaxation and travel perks during life, timeshares can become a complicated part of estate planning if not properly addressed.
Whether you own a deeded timeshare or hold a right-to-use contract, it’s important to understand how these assets transfer upon death and how to protect your heirs from unwanted financial obligations or legal confusion.
At Allenby Law, we help San Diego families navigate estate planning with clarity and simplicity. We’ll explore how timeshares work in estate planning, how to include them in your documents, and what to consider before passing them on to your loved ones.
What Is a Timeshare?
A timeshare is a vacation property arrangement in which multiple people share ownership or usage rights of a property, typically a resort or vacation condo. Timeshares generally fall into two categories:
- Deeded Timeshare: You own a fraction of the property as real estate, usually for a specific time period each year.
- Right-to-Use Timeshare: You lease the right to use the property for a number of years but do not own real estate.
In either case, timeshare owners are often responsible for annual maintenance fees, special assessments, and other costs—regardless of whether they use the property.
Why Timeshares Can Complicate Estate Planning
Unlike traditional real estate or financial assets, timeshares are governed by unique legal and contractual rules that vary widely between resorts and companies. This can make them harder to:
- Value accurately for tax purposes
- Transfer without delays or unexpected fees
- Sell if heirs do not want the responsibility
- Manage if the timeshare is located in another state or country
Moreover, timeshares rarely appreciate in value and often become a financial burden if not used or wanted by heirs.
Including a Timeshare in Your Estate Plan
1. Identify the Type of Timeshare You Own
Before incorporating a timeshare into your estate plan, determine whether it’s a deeded property or a right-to-use agreement. This affects how ownership is transferred and what legal tools you need.
- Deeded timeshares are treated like real estate and typically go through probate if not placed in a trust.
- Right-to-use contracts are considered personal property and may or may not be transferrable, depending on the terms of the agreement.
Understanding what you own is the first step to planning intelligently.
2. Review the Timeshare Contract
Carefully read your timeshare agreement to understand:
- If it’s transferable at death
- Whether heirs must assume financial obligations
- Whether the resort or company can refuse a transfer
- If a specific process must be followed for title or membership transfer
Some contracts include “right of first refusal” clauses that allow the timeshare company to reclaim the unit before it’s transferred.
3. Add It to Your Will or Trust
If you want to leave your timeshare to a specific beneficiary, you must include it in your estate documents.
- In a will, you can name the beneficiary and describe the property or membership rights.
- In a revocable living trust, you can transfer the timeshare into the trust to avoid probate and provide clearer instructions for management and distribution.
Just make sure the transfer aligns with the resort’s rules and that your chosen beneficiary is willing and able to take on the obligations.
What If Your Heirs Don’t Want the Timeshare?
It’s common for children or other heirs to decline a timeshare inheritance—especially if they don’t use the property or don’t want the annual fees. In this case, you have several options:
1. Gift or Sell the Timeshare During Your Lifetime
If you know your beneficiaries won’t want the timeshare, consider transferring ownership while you’re still alive. This can reduce your estate’s complexity and allow the new owner to decide what to do with it.
You may be able to:
- Sell it on a secondary market (though resale values are usually low)
- Donate it to a charity (if accepted)
- Give it to someone who will use and enjoy it
Just make sure to involve an attorney or licensed agent to handle the transfer properly.
2. Include Disclaimers or Decline Provisions
If your estate documents do pass the timeshare to a specific person, give them the legal right to disclaim it if they choose. That way, they are not forced into unwanted financial obligations.
You can also designate a secondary beneficiary or instruct the executor to sell or relinquish the timeshare if no one wants it.
3. Set Aside Funds to Cover Fees
Even if your heirs want the timeshare, they may not be financially prepared to cover fees or taxes associated with the transfer. Allocating funds in your estate plan to cover the transition period can prevent hardship and make the inheritance more appealing.
Timeshares and Probate
If you own a deeded timeshare in another state, that asset may trigger ancillary probate—a secondary probate proceeding in the state where the timeshare is located. This can be costly, time-consuming, and entirely avoidable.
To prevent this, consider placing the timeshare in your revocable living trust or using a transfer-on-death deed (if the jurisdiction allows it).
A smart estate plan can help you avoid multiple court proceedings and keep your estate administration as efficient as possible.
Considerations for Vacation Clubs or Points-Based Systems
Some modern timeshare systems don’t involve fixed weeks or locations. Instead, they offer:
- Points-based memberships
- Vacation clubs
- Floating week systems
These often come with different rules for inheritance or transfer. Sometimes, they can’t be passed down at all—or doing so requires additional fees and approvals.
If you’re part of a points-based timeshare program, speak to your provider about what happens when you pass away. Get clear documentation to include in your estate plan.
Work with a Legal Professional
Timeshares involve a mix of real estate law, contract law, and estate planning. Working with an experienced estate planning attorney helps you:
- Understand the legal and financial implications of your timeshare
- Coordinate with your overall estate plan and other assets
- Structure the plan to protect your heirs and avoid complications
- Execute any necessary deeds, trust transfers, or disclaimers
If you fail to plan, your heirs could be stuck with a timeshare they neither want nor can afford to maintain. Taking the time to address it now saves everyone stress and money later.
How We Can Help
At Allenby Law, we believe estate planning should be both smart and simplified—especially when it comes to complex assets like timeshares. Our San Diego-based team is experienced in helping clients navigate the legal and contractual details of their timeshare agreements so that these assets are handled smoothly and in alignment with your goals.
Whether you want to leave your timeshare to a loved one, transfer it to a trust, or remove it from your estate altogether, we’ll guide you through every step with clarity and care. Don’t let an overlooked timeshare create complications for your family. Let us help you build a plan that protects your legacy.
Contact us today to schedule your personalized estate planning consultation.
