A timeshare, or vacation ownership, is when you pay a monthly or annual fee in exchange for the right to use that property for vacations. Timeshare properties have multiple owners who have the right to use the property. Typically timeshares are resort condominium units, and each owner is allotted a specific time period to use the property. Timeshare ownership is a lifetime commitment to an annual trip to the same resort, group or resort property. Often, your heirs can inherit your timeshare when you pass away. But they can also inherit the timeshare ownership fees!
If your family loves your time ownership property and wants to continue to visit it – and pay the associated fees – your timeshare should be part of your estate plan. But what if your children don’t want to inherit your timeshare property? When you purchased your timeshare, if it can be inherited, you likely named the beneficiary. Timeshare agreements typically contain a “perpetuity clause” so that when the original owner dies, the timeshare becomes part of the estate. The new owners are obligated to take over the timeshare fees.
If your children don’t want to inherit your timeshare, you can take action to save them the money, time and stress of inheriting your timeshare after you die.
1. Check The Timeshare Deed
Make sure your children’s names aren’t listed on the timeshare deed as your beneficiary.
2. Sell Your Timeshare
If your heirs don’t want to inherit your timeshare, sell your timeshare now. Alternatively, while you are living, you can gift your timeshare to someone you know who does want it – and the fees!
3. Gift It Through A Trust
While you are living, you can gift your timeshare to someone you know who does want it – and the associated fees! You can create a trust or joint tenancy so that the person who wants the timeshare will receive it under the terms of the trust.
If you die without a will and your timeshare is part of your estate, Illinois intestacy laws will determine who inherits your timeshare and the rest of your estate. If you do have a will and leave the timeshare to your children, or your heirs receive the timeshare through intestacy laws, each of your heirs can file a “disclaimer of interest” so they do not inherit the timeshare – or the fees.
What Is An Illinois Disclaimer of Interest?
A beneficiary of property in Illinois can disclaim all or part of their interest in that property according to 755 ILCS 5/2-7(a). This document must:
With expert guidance from the estate planning attorneys at Estate & Probate Legal Group in Illinois, we can protect your loved ones and give you peace of mind. Contact us today at 630-864-5835.
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