True or false: My children will be stuck with my timeshare when I die. Mostly false.

 There is a new generation of timeshare “relief” companies out there. The names I keep hearing are Wesley Financial Group and Timeshare Exit.  This generation of timeshare relief companies don’t seem to be drawing the same level of criticism and scrutiny as what I saw in the 1990s. Maybe that’s because this generation of companies don’t promise to “sell” your timeshare.  I have never seen a company that promised to sell your timeshare be anything but a scam. It is very possible for a company to promise “relief” from a timeshare and deliver, but you should understand at the beginning what type of “relief” is being proposed and make sure the costs are worth the benefits.  

In the past 20 years “Points” based timeshares have mostly taken the place of “deeded” timeshares, and that’s probably a good thing. Deeded timeshares were/are nightmares in any number of ways.  From what I can tell, point-based timeshares are easier to get out of because most of the companies are content if you just give up your initial “investment”, and they don’t seem to have the desire to chase you for continuing support. 

There is one thing that the ads for timeshare relief companies may leave you with the wrong impression about, and that is that your children will be stuck with your timeshare when you die.  That isn’t necessarily true. They won’t automatically be stuck with your timeshare when you die, but they could be if they and you aren’t smart about things. Because timeshares are easier to get out of than they used to be, you might find that it costs less to pay your timeshare company what they want to get out of it than to pay a timeshare relief company.  You also might find your cheapest option is to simply hold onto the timeshare until you die and let let the timeshare lapse upon your death. (The timeshare company may have a creditor’s claim for dues and assessments, but most people die without ever opening a probate estate, and a lot of creditors’ claims never get paid.)  

The key thing for you to know and for your children to know, is they will not be liable on the timeshare without an act of ACCEPTANCE on their part. Whether you try to give them the timeshare while you are alive, or upon your death through an estate or intestate succession, if they refuse to accept the timeshare they should not face continuing liability. Now that means that they can’t accept any benefit from the timeshare.  Similarly, if someone leaves you a timeshare when you die, you are not liable unless you ACCEPT it. 

If you own a timeshare, when you are doing your estate planning, I suggest you talk to your children (or other heirs or devisees) prior to making your will, to see if they WANT your timeshare upon your death. It is very important to explain to them the expected and potential costs, the fees and assessments, any amount due under the purchase contract, and the benefits and limitations on usage as well as the process , costs and limitations on week trading.  Let them know that they don’t have to take it.  If they want it, understand the costs and can handle the costs, fine, give it to them in your will. (When you die, if they change their minds they can still reject it or refuse to accept it.) Otherwise, consider specifically saying in your will that the interest should either be transferred back to the timeshare company or no action should be taken regarding the timeshare interest.  There are some companies out there that say they accept timeshares as charitable donations. I have not researched any of these companies, and I can’t say one way or another whether using one is a good idea.  

If you are ever sued by a company collecting any type of timeshare obligation, or even receive a collection letter, I suggest you contact a consumer attorney in your area who is a member of the National Association of Consumer Advocates. You can find a NACA consumer attorney at www.consumeradvocates.org/find-an-attorney. 

Note: Please don’t call me if you have a problem or beef with your timeshare company.  I can only represent timeshare buyers who live in Indiana, and I don’t have much if any space on my docket at present for them.  Also note that I only am licensed to practice law in Indiana. I know that most states require acceptance to make a valid gift, I can’t guarantee that ALL states have the same rule.  Before you take an action regarding your timeshare, I suggest you tak to a lawyer in your state.  I have seen timeshare companies DENY that acceptance is required to make a gift even in states where it clearly is. Sometimes you have to stick to your guns.