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- When owner passes away
When owner passes away
What typically happens to a timeshare when the owner passes away? I imagine it may differ by resort, but what are the legal ramifications if the deceased does not bequeath the timeshare? Does it get passed to the next of kin or get returned to the resort? Who gets stuck with the maint. fee?
Lee W.
First and foremost, I'd like to dispel one myth that a lot of "relief" companies or viking ship companies like to perpetuate. Children or heirs of the deceased owner(s) are NOT forced to accept ownership, even if the owner says in his will that his heirs will receive everything. The heirs (or whoever else is mentioned in the will) CAN refuse to accept ownership.
Another thing to remember is that this subject varies from jurisdiction to jurisdiction. It's usually recommended that the executor of the will seek legal advice from a legal expert in that particular jurisdiction.
Also, the unwanted timeshare does not automatically go back to the resort, HOA, timeshare management company, or developer. Neither of those parties, just like the heirs of the decedent, is forced to accept an unwanted unit.
As for who pays the maintenance fees, well the owner does. In such a case, the decedent (or his estate) is still the owner and therefore, his estate is responsible for the maintenance fees. Hence, my personal recommendation for the executor is to contact the resort's HOA and explain the situation. Tell the HOA that the owner has passed and that none of his heirs want it. Therefore, it would be in the best interests of the resort and HOA to accept the deed back otherwise it's just going to get tied up in the system without anyone paying maintenance fees.
One thing to watch out for are these transfer or relief companies who prey on executors and heirs in such a situation. They say that, if you pay them thousands of dollars, they will magically make the unit disappear and everything will be all peachy-keen. At best, all they'll do is what I previously recommended: contact the resort and explain that it would be in the resort's best interests to take the unit back. That's something you can do yourself for a lot less money.
Lance C.
Like Lance stated nobody can force anyone to take ownership of a timeshare. If a person has left his assets in a trust and excluded the timeshare then it's safe from creditors. The best way to prevent a situation involving a timeshare is to plan ahead. Like Lance stated let an attorney handle it if there is one handling the estate. Don't be intimidated by the scammers claims.
Don P.