CNBC: Why inheriting that beautiful timeshare can bust your wallet

https://www.cnbc.com/2018/02/05/how-to-offload-an-unwanted-timeshare.html

With quotes from our very own Jeff Weir. Nice job, Jeff.

maurice wrote:

https://www.cnbc.com/2018/02/05/how-to-offload-an-unwanted-timeshare.html

With quotes from our very own Jeff Weir. Nice job, Jeff.

Good article. Kudos to it for revealing one huge falsehood that most "exit" operations foster and perpetuate when they try to "guilt trip" people by imploring "You don't really want to burden your children with this timeshare, do you?"

The TRUTH is that unless offspring are specifically NAMED on a timeshare deed (an action which is almost always a very bad idea, in my opinion), those offspring need NEVER accept the inheritance of a timeshare ownership if they don't want it. They can simply file a disclaimer to REJECT any such unwanted inheritance. Of course, revealing that particular truth would take a whole lot of steam and allure away from the pitch of those upfront fee "exit / relief / escape/ rescue" parasites and / or the so-called "PostCard Companies". After all, it would work directly against their financial interests to let those facts and that truth "dilute" their "pitch".

The only item to which I must take exception in the article is a mention by one attorney of "donating" an unwanted timeshare to a "charity organization". That is just a silly and misleading statement, since NO legitimate charity on Planet Earth wants ANY part of accepting a "timeshare donation", which is an ongoing financial liability with its' own firmly attached annual costs. As such, it would be a unwelcome and expensive burden (not actually a "gift" or a "donation"). Any legitimate charity knows this and wants NO part of any such attempt to "make YOUR burden THEIR burden".

good point about the 'disclaimer to REJECT any such unwanted inheritance'. I didn't think there was a chance my kids wouldn't want my two time shares but at least this gives them the option of rejecting it. I was thinking of putting the timeshares in our trust with the rest of the real property but maybe they don't want a timeshare after we pass.

bobb722 wrote:

good point about the 'disclaimer to REJECT any such unwanted inheritance'. I didn't think there was a chance my kids wouldn't want my two time shares but at least this gives them the option of rejecting it. I was thinking of putting the timeshares in our trust with the rest of the real property but maybe they don't want a timeshare after we pass.

You may want to confer with your own legal counsel, but whatever you decide DO NOT independently add your kids' name(s) to your existing deeds. If you do so, you make them (possibly without their prior knowledge or informed consent) legal co-owners. If you (very unwisely) do that, you completely take away from them in advance any future option to "disclaim" the inheritance later. Not at all smart --- and entirely avoidable.

bobb722 wrote:

I didn't think there was a chance my kids wouldn't want my two time shares but at least this gives them the option of rejecting it. I was thinking of putting the timeshares in our trust with the rest of the real property but maybe they don't want a timeshare after we pass.

A good idea now would be to discuss this matter with your children and ask them if they want your timeshares or not. Also, if you have an executor for your will, you might want to discuss with him what to do with the timeshares if your kids do not want them. It might be a good idea now to look at what realistic, legal ways there are of getting rid of these after your unfortunate passing.

What's the downside of not putting it in your trust, though? I mean, worst case, the kids want it and...what happens? They have to pay a bit of additional tax, maybe?

But by not having it in the trust you leave them the flexibility to reject it. Even if they want the unit currently, it seems like a good idea to keep that option open.

maurice wrote:

What's the downside of not putting it in your trust, though? I mean, worst case, the kids want it and...what happens? They have to pay a bit of additional tax, maybe?

But by not having it in the trust you leave them the flexibility to reject it. Even if they want the unit currently, it seems like a good idea to keep that option open.

I'm not sure that whether or not the deeds are in a trust decidedly impacts the ability to later "disclaim" if the children are not actual "trustees", whereas childrens' names on the deeds themselves most certainly eliminates any option to later file a disclaimer.

M=Next time you go to a timeshare presentation, get the name of the salesperson and leave your timeshare to them in your will.

marvinb11 wrote:

Next time you go to a timeshare presentation, get the name of the salesperson and leave your timeshare to them in your will.

Humorous, but silly (legally speaking). There must also be acceptance for any deed to be valid --- otherwise people could just unilaterally deed their timeshare back to the resort anytime they felt like it, without the consent of the HOA, or just pick a name and address at random out of the phone book as "grantee" --- neither of which would be legally valid without actual acceptance.

I am SO glad to catch this thread. Thank you for sharing!!!

Is it possible to just give the timeshare back to the resort with no strings and lose the whole investment, but be done with it?

kathier13 wrote:

Is it possible to just give the timeshare back to the resort with no strings and lose the whole investment, but be done with it?

It's possible, but certainly not guaranteed. Some resorts accept "deedbacks"; most will not.

“Deedback” policies (and costs) are determined by each individual resort HOA and HOA positions on the matter vary widely --- and can change at any time. No resort is ever actually obligated to accept "deedbacks". You will have to contact YOUR resort HOA directly to obtain a current, accurate answer for YOUR specific resort situation and try to make your case for a "deedback".

I gave two timeshares back in 2011 by using deed backs . I made many calls to the resort and made sure I got a hold of the person that handles deeds . I firmly explained to them that I was going to get them out of my name with or without their assistance . I then convinced them that it was in their best interest to work with me to avoid possible legal fees and lost maintenance fees . I would not be responsible for the actions of the new owner . Obviously they took me seriously and a few short weeks later I had certified copies of the quit claim deeds . It was very quick and inexpensive .

Some resorts may demand that you pay the next years maintenance fees to give them time to find a new owner but I find that very reasonable to deal directly with the resort . Most people for some reason don't think they can negotiate their own exit but I did it and I have been free of maintenance fees and assessments since 2011 . My advice is to make it your priority to contact them and at least try it on your own .

NEVER pay anyone money upfront that claims they can get you out of your contract !!