Vacation Memories, Not Probate Headaches: Planning for Timeshare Inheritance

Don’t Forget Your Timeshare in Your Estate Plan

When creating or reviewing an estate plan, most people think first about their home, bank accounts, retirement funds, and other major assets. One often-overlooked asset, however, is the family timeshare. Whether you own a deeded week at a resort or participate in a points-based vacation club, your timeshare is part of your estate—and it must be addressed in your planning or it could end up causing your family a lot of money and trouble after you are gone.

If a timeshare is left out of your trust, it can create costly and time-consuming issues for your loved ones. Many owners mistakenly believe a timeshare is not “real property” or that it automatically transfers to family members. In reality, most timeshares—whether deeded or held through a points program—are considered property interests. If they are not properly titled into your trust, they will likely have to go through probate when you pass away. There is no one-size-fits-all solution, either. All timeshare companies and the states they do business in or where they are located will dictate the process that needs to be followed to ensure a smooth transition to the next owner.

Why Avoid Probate?

Probate is the court-supervised process for settling an estate and transferring assets to heirs. It is public, can take many months to complete, and often requires attorney’s fees and court costs. Timeshares can make this process even more complicated. Resorts may continue billing annual maintenance fees, penalties, and taxes while the timeshare sits in probate. If your timeshare is in a different state than your primary residence, your family may even face a second “ancillary probate” proceeding there.

These hassles and expenses can be avoided by properly titling the timeshare into your trust during your lifetime.

How to Transfer a Timeshare to Your Trust

For a deeded timeshare, your estate planning attorney can prepare a new deed transferring the property into the name of your revocable living trust. For a points-based membership, the resort or vacation club typically has forms to assign the membership to the trust. Procedures vary by company, so it is wise to work with an attorney familiar with both your estate plan and the timeshare company’s requirements.

The goal is to ensure that your successor trustee can manage, sell, or distribute the timeshare seamlessly without court involvement. This helps avoid unexpected costs and delays for your family.

Review Your Plan Today

Estate planning is about more than just the “big” assets. A thorough plan takes every piece of property into account, including real estate, personal property, digital assets—and yes, timeshares.

If you already have a trust, review it with your attorney to confirm that all real estate interests, including timeshares, have been transferred properly. If you are setting up a new plan, be sure to include these assets from the start.

Taking a few extra steps now can save your loved ones significant stress later. Our firm helps clients review and update their plans to protect all assets, large and small. If you have questions about your timeshare or any other property, contact us to schedule a consultation.