Inherited a Timeshare? Your Complete Guide to Refusing, Disclaiming, or Exiting
Inheriting a timeshare can feel like receiving a financial burden instead of an asset. If you've recently discovered you're the heir to a timeshare, you have options—including refusing the inheritance entirely. This comprehensive guide explains your rights, the disclaimer process, and how to exit an inherited timeshare without taking on the financial obligations.
Time-Sensitive Action Required
If you've inherited a timeshare and don't want it, you must act quickly. Most states require you to file a formal disclaimer within 9 months of the owner's death (some states allow as little as 30-90 days). Missing this deadline may force you to accept the inheritance and its financial obligations.
Understanding Inherited Timeshares
When a timeshare owner passes away, the timeshare becomes part of their estate and is typically transferred to heirs through the probate process. Unlike inheriting cash or valuable property, inheriting a timeshare means inheriting a financial liability—ongoing maintenance fees, special assessments, and property taxes that continue indefinitely.
Most heirs are shocked to discover they've inherited not a vacation asset, but an obligation to pay $1,000-$2,000 annually in maintenance fees for a property they may never use. Even worse, these fees increase 5-8% every year, compounding the financial burden over time.
Types of Timeshare Ownership and Inheritance
How a timeshare is inherited depends on the ownership structure:
Your Rights as an Heir: Can You Refuse?
Yes, you can refuse an inherited timeshare. Under both federal and state law, you cannot be forced to accept an inheritance you don't want. This right is protected through a legal process called "disclaiming" the inheritance.
However, there's a critical caveat: you must act quickly and follow specific legal procedures. Simply ignoring the timeshare or telling the executor you don't want it is not sufficient. You must file formal legal documents within strict deadlines.
The Legal Right to Disclaim
The Uniform Disclaimer of Property Interests Act (adopted by most states) gives heirs the right to refuse any inheritance, including timeshares. When you disclaim an inheritance:
How to Disclaim an Inherited Timeshare: Step-by-Step Process
Disclaiming a timeshare inheritance requires following specific legal procedures and meeting strict deadlines. Here's exactly what you need to do.
Step 1: Verify the Deadline in Your State
Critical first step: Determine your state's disclaimer deadline. This varies significantly by state:
| Deadline Type | States | Time Limit |
|---|---|---|
| Federal Tax Deadline | All states (IRS requirement) | 9 months from date of death |
| Short State Deadline | Florida, California (some cases) | 30-90 days from knowledge of inheritance |
| Standard State Deadline | Most states | 9 months from date of death |
| Extended State Deadline | Texas, some others | Up to 1 year from date of death |
Important: If you miss your state's deadline, you may be forced to accept the timeshare and its financial obligations. Contact a probate attorney immediately if you're unsure of your deadline.
Step 2: Do Not Use or Accept Any Benefits
Critical rule: If you use the timeshare or accept any benefits from it, you may lose your right to disclaim. Actions that can void your disclaimer right include:
Do NOT Do These Things:
- •Booking or using a vacation week at the timeshare resort
- •Paying maintenance fees or other timeshare expenses
- •Renting out the timeshare week or points
- •Transferring the timeshare to another person
- •Accepting any money from renting or selling the timeshare
- •Signing any documents acknowledging ownership
Any of these actions can be interpreted as "accepting" the inheritance, which may prevent you from disclaiming it later. If the executor or timeshare company pressures you to take action, consult an attorney before doing anything.
Step 3: Prepare the Disclaimer Document
A valid disclaimer must be in writing and include specific information. While requirements vary by state, most disclaimers must contain:
Recommendation: Have a probate attorney prepare the disclaimer document to ensure it meets all legal requirements. The cost ($500-$1,500) is far less than years of maintenance fees.
Step 4: File the Disclaimer
Once prepared, the disclaimer must be filed with multiple parties:
Keep proof of filing: Retain copies of all filed documents and certified mail receipts. You may need these if the timeshare company or collection agencies contact you later claiming you're responsible for fees.
Step 5: Follow Up to Ensure Proper Processing
After filing, confirm that all parties have received and processed your disclaimer:
Contact the timeshare company 30 days after filing to verify they've updated their records. Request written confirmation that you are not listed as an owner. Check with the executor to ensure the timeshare is being handled properly (either passing to the next heir or being dealt with by the estate). Monitor your credit report for 6-12 months to ensure no timeshare-related debts are reported in your name.
What If You Missed the Disclaimer Deadline?
If you've already accepted the timeshare or missed your state's disclaimer deadline, you're not necessarily stuck forever. You have several options to exit the timeshare even after accepting it.
Option 1: Deed-Back to the Resort
Many timeshare companies offer deed-back or surrender programs that allow you to return the timeshare to the resort. Requirements typically include: Mortgage must be paid in full (or the estate must pay it off). Maintenance fees must be current. You may need to pay a processing fee ($500-$2,000). Some companies require proof of hardship.
Major companies with deed-back programs: Wyndham (Certified Exit Program), Marriott (Legacy Owner Relief Program), Hilton (Owner Services Exit), Diamond (Transitions Program), Bluegreen (Exit Program).
Contact the resort's owner services department and explain that you inherited the timeshare and want to return it. Be persistent—initial denials can sometimes be overturned with documentation of the inheritance and your financial situation.
Option 2: Legal Cancellation
Even after accepting an inherited timeshare, you may have legal grounds for cancellation if the original owner experienced:
A timeshare attorney can review the original purchase documents and identify potential grounds for cancellation. Success rates with qualified attorneys: 95-99%. Cost: $3,000-$8,000. Timeline: 6-9 months average.
Option 3: Sell or Give Away the Timeshare
While most timeshares have little to no resale value, you may be able to transfer it to someone willing to take over the maintenance fees. Realistic expectations: Most timeshares sell for $0-$500 on the secondary market. You'll likely need to pay transfer fees ($500-$2,000). Finding a buyer can take 1-3 years. Some resorts restrict or prohibit resales.
Where to list: eBay (many timeshares listed for $1), RedWeek.com, Timeshare Users Group (TUG), SellMyTimeshareNow.com, Craigslist (local buyers).
Be prepared to essentially give the timeshare away for free or even pay someone to take it. While this isn't ideal, it permanently ends your financial obligation.
Common Mistakes to Avoid
Heirs dealing with inherited timeshares often make critical mistakes that cost them thousands of dollars or trap them in unwanted contracts. Avoid these common errors:
Critical Mistakes That Cost You:
Special Situations and Considerations
Multiple Heirs
If multiple people inherited the timeshare (siblings, for example), each heir can make an independent decision about disclaiming. If some heirs disclaim and others don't, those who accept become responsible for the full maintenance fees. If all heirs disclaim, the timeshare returns to the estate and becomes the executor's problem to resolve.
Recommendation: Communicate with co-heirs before making decisions. If everyone wants to refuse, coordinate your disclaimers to ensure the timeshare doesn't inadvertently pass to someone who doesn't want it.
Timeshare with Outstanding Mortgage
If the deceased owner still owed money on the timeshare mortgage, the debt typically must be paid by the estate before the property can be transferred or disclaimed. Options include: The estate pays off the mortgage, then you can disclaim. You disclaim the entire inheritance (including the debt). The estate defaults on the mortgage, and the timeshare company forecloses (no impact on heirs who disclaimed).
Important: You are not personally liable for the deceased owner's timeshare mortgage unless you co-signed the original loan. The debt belongs to the estate, not to you as an heir.
Timeshare in a Trust
If the timeshare was held in a living trust, it bypasses probate and transfers directly to trust beneficiaries. Your options: Disclaim your beneficial interest in the trust (similar process to disclaiming probate inheritance). Request the trustee exercise their authority to dispose of the timeshare. Negotiate with the trustee to have the trust pay to exit the timeshare before distribution.
Trust situations are more complex. Consult with an attorney who specializes in both trust law and timeshare issues.
Conclusion: Act Quickly to Protect Yourself
Inheriting a timeshare doesn't have to become a financial nightmare. You have the legal right to refuse this inheritance, but you must act quickly and follow proper procedures. The disclaimer deadline is strict—missing it can trap you in decades of escalating maintenance fees.
If you've recently learned you're inheriting a timeshare, take these immediate actions: Determine your state's disclaimer deadline (contact a probate attorney if unsure). Do not use the timeshare or pay any fees until you've made a final decision. Consult with a probate attorney to prepare and file a proper disclaimer. If you've already accepted it, explore deed-back programs or legal cancellation options.
Remember, the timeshare company will likely pressure you to accept the inheritance and start paying fees. They may send intimidating letters or make aggressive phone calls. You are not legally obligated to accept an inheritance you don't want. Stand firm, follow the proper legal procedures, and protect yourself from this unwanted financial burden.
Need Help with an Inherited Timeshare?
Whether you need to disclaim an inheritance or exit a timeshare you've already accepted, our attorneys can help. We specialize in timeshare inheritance issues and have helped hundreds of heirs avoid unwanted financial obligations. Get a free consultation to discuss your specific situation.