What happens to my timeshare when I die?
From the desk of Edward Cambas: What happens to my timeshare when I die?
It is very important to understand and plan for what happens to your timeshare when you die. The most important thing is to make sure your family is not burdened with additional hardships. The most important thing that you can do it plan for the inevitable prior to your death. Do not complicate your heir’s lives and it is relatively easy to avoid hardship if you plan in advance. Dealing with a probate estate is upsetting, adversarial and time-consuming.
When you are planning your estate, you have to look at all of your various assets, including bank accounts, investments, and other property which might include timeshares. A successful process involves restructuring your ownership so that the assets will pass directly to the people you choose when you die. If you can avoid probate, then you are certainly doing all the right things. Proper planning may eliminate the need for a will, although, it is better to maintain a valid will just in case not all assets were properly planned for.
Most of the timeshares are deeded and they are actually owned like other types of Real Estate. Most people think that you simply share the property but can only use it at certain times. The truth is that you own the physical unit only during the specified time like “unit 412” and only for “week 15” of the year.
Timeshares are governed by various agreements and possibly a community association, so you will need to check those documents to see whether there are any restrictions and adjust your plan accordingly. Timeshares can be set up just like any other investment property, with the most common methods including setting up a living trust, or putting the property into a life estate. It is best to consult an estate planning professional to discuss your options.
Governing of the timeshare includes various agreements, and possibly a community association. It is important to attempt to review all documents and guidelines so that you can understand all the restrictions and adjust your plan accordingly. Obviously, the documents are going to be a bit overwhelming to review, but possibly try to at least preview the most important topics which apply to your concerns. You can set up a timeshare just like other investments, like setting up a living trust or putting the property into a life estate. Consider consulting a professional to discuss and plan for your options.
Edward E. Cambas is a Licensed. Real Estate Broker with over 25 years of experience. This is not intended as legal advisory and all of your options should be explored by a professional such as an attorney. Make sure that you take the time to explore all of your legal options. More free info.