How to Refuse to Inherit a Timeshare

A lot of people would rather inherit a doghouse than a timeshare. At least the doghouse won’t require a $1,000 annual maintenance fee.

If someone dies and leaves you a timeshare, don’t panic or boycott the funeral. You won’t be stuck with it – if you take a few simple steps.

Here’s all you need to know about refusing to inherit a timeshare.

How Do Timeshares Become Inherited Property?

When someone dies, their property and possessions become their “estate.” If they’ve planned for their earthly departure, they’ve made a will that designates who should inherit what from their estate.

Every worldly possession is not always in a will, though something as big as a timeshare probably would be.

Even if it’s not or the deceased didn’t have a will, chances are they designated who should inherit the timeshare when they originally bought it. That’s because timeshare contracts typically have a “perpetuity clause.”

The perpetuity clause states that the ownership and all associated responsibilities will continue indefinitely, as in until the end of time. Perpetuity clauses aren’t always in the contract, but timeshare salespeople usually encourage buyers to put their kids’ names on the deed. That way, the timeshare company will keep the hefty maintenance fees rolling in.

But what salespeople spin as inheriting a perpetual vacation paradise lovingly bequeathed to future generations, the beneficiary may see as inheriting debt.

If that describes you, fear not. You can file a “Disclaimer of Interest.” It’s a legal document that informs all interested parties that you do not want to inherit the timeshare.

Rules vary from state to state, but the disclaimer must be filed with the probate court and other relevant authorities. That might sound complicated, but it’s relatively simple and doesn’t require hiring a lawyer.

Why You May Want to Refuse a Timeshare

The dearly departed may think they are doing you a favor by leaving you a timeshare. That’s because owning real estate can have real advantages.

If the timeshare is paid off, you essentially have a pre-paid vacation. The only recurring expense is the annual maintenance fee.

You might be able to make money renting your designated weeks. If the timeshare is part of a large exchange network, you could switch out and stay at resorts around the world.

Or you might just enjoy keeping a family tradition alive by vacationing at the same spot you did with your parents.

That said, a timeshare isn’t typical real estate. About 85% of timeshare buyers regret their purchase, according to a University of Central Florida study. Among the reasons:

• They are bad investments. The Federal Trade Commission advises consumers to never buy one for its “investment value.” They don’t appreciate and can be impossible to sell.
• Maintenance fees. The average annual fee is about $1,200, according to the American Resort Development Association. For that kind of money, you could get five nights in a nice hotel.
• Maintenance fees aren’t all you’ll pay. You will also be liable for property taxes, utilities and special assessments. If the timeshare needs a new roof, you’ll help pay for it.
• Rental income is iffy. There are usually far more timeshares for rent than there are potential customers. And some timeshare companies don’t even allow owners to rent their property.
• Use it or lose it. If you don’t use your allotted time during the year, it usually cannot be rolled over into another year.

Five Steps to Refuse an Inherited Timeshare

If you decide the cons of owning a timeshare outweigh the pros, here’s what to do – and what not do.

1. Don’t Use the Timeshare

If you take advantage of your inheritance and use the timeshare just once, it will probably negate your right to file a Disclaimer of Interest.

2. Act Quickly

You don’t have to file your disclaimer right after burying your loved one, but don’t procrastinate. Rules vary by state, but you’ll usually have nine months to file after the date of death. It could be less, so make sure you find out.

3. Draw Up a Document Renouncing the Property

Your wishes need to be put in writing. It’s a legal document, but it doesn’t have to read like it was written by a circuit court judge. Just have the basics:

• Your name and address
• A description of the timeshare property
• A statement declaring you renounce ownership
• Your signature

Make some copies and send one to the timeshare company and one to the executor of the estate. If that’s not you, keep a copy for yourself.

4. Send Copies of the Document Through Certified Mail

You want to make sure the document gets to the required parties. The best way is to send it via certified mail. You’ll get a receipt verifying you mailed the document, and certified mail requires a signature upon delivery.

The U.S. Postal Service charges $10.10 for a flat-rate Priority Mail envelope. It’s worth the investment.

5. File a Copy Through Probate Court

Probate court is the legal process of distributing someone’s estate. The judge makes sure the instructions in a will are followed.

If there’s no will, the judge will distribute the property according to the state’s “intestate” laws. That basically means the property is distributed to surviving family members in a logical manner.

Will or no will, you need to send your disclaimer document to the probate court. That way, your timeshare wishes will be known and enforced.

All in all, you’d rather inherit a doghouse.