Timeshare Inheritance: What Happens When a Timeshare Is Passed On?
Did you just discover a timeshare in a relative’s will? You’re not alone. Many families get a timeshare out of the blue and wonder if it’s a gift or a burden. The good news is you have options, and the bad news is the paperwork can be tricky. Below we break down the real steps you need to take, the costs you might face, and how to decide what to do with the inherited timeshare.
First Steps: Confirm Ownership and Review the Deed
Start by getting a copy of the timeshare contract and the deed. These documents tell you who the legal owner is, what type of ownership you have (fixed week, floating week, or points), and any rules about transfer or termination. If the deed lists the deceased as the owner, the title usually moves to the heir named in the will. If the will is vague, you may need a probate court to clear the title.
Next, contact the timeshare management company. Tell them you’re the new owner and ask for a statement of account. They’ll give you details on annual fees, maintenance costs, and any pending dues. Knowing the exact numbers helps you decide whether keeping the timeshare makes sense.
Know Your Options: Keep, Sell, Transfer, or Exit
If you love the vacation spot and can afford the fees, keeping the timeshare might be the simplest route. Just set up automatic payments to avoid late fees and follow the resort’s reservation rules.
For many heirs, selling is the preferred move. The resale market for timeshares is tough, but you can list it on reputable platforms or work with a broker who specializes in timeshare sales. Be prepared for a lower price than the original purchase—often 30‑40% of the original cost.
Another common route is a deed transfer to a family member or friend. Some resorts allow you to transfer ownership without a sale, but they may charge a transfer fee. Check the contract for any resale or transfer restrictions.
If the fees outweigh the benefits, you can try a termination or “give‑back” program. Not all resorts offer this, but a few will let you exit if you meet certain conditions, like paying a termination fee or providing proof of financial hardship.
Don’t forget the tax side. Inherited property is usually stepped‑up to market value at the time of death, so you won’t owe capital gains on the original purchase price. However, if you sell the timeshare later, you may owe tax on any gain between the stepped‑up value and the sale price. A quick chat with a tax adviser can save you surprise bills.
Finally, consider the emotional value. Some people keep a timeshare because it holds family memories, even if they rarely use it. If that’s the case, you can still rent out unused weeks to cover costs, turning a dull expense into a small income stream.
Bottom line: an inherited timeshare doesn’t have to be a headache. Verify the ownership details, understand the fees, and weigh your options—keep, sell, transfer, or exit. Get professional advice when you’re unsure about legal or tax implications, and act quickly to avoid missed payments that could lead to penalties. With the right approach, you’ll turn an unexpected inheritance into a clear, manageable decision.