I've been hijacking John[MI]'s post today regarding an issue I think may be happening with time shares, so wanted to put this into it's own thread. You might read up on that a bit if you're interested in some of the "down in the weed" details, but the basic topic I am trying to learn more about is "perpetual inheritance."

I was recently told that I CANNOT refuse to inherit my parent's time shares. I believe that is FALSE. But, I believe there may be a clause in my parents' time share contract that gives them the right to insist that I either take ALL of my parent's estate (including the time shares) or NONE of it, in which case the time share company would get their estate.

So while they cannot force me to take them (a lie told by the time share company), it's still an insidious device that puts any heirs in a no win situation. You either take it all or you take nothing. If you take it all, then your heirs have the same problem 20-40 years from now.

From stories I have researched, if you try to Deed the time shares to someone else, the time share company can undo the transfer unless they believe the person will be able to pay the ongoing fees. This prevents you from giving it to the town drunk in exchange for a bottle of booze. This is all agreed to, in advance, in the contract. I doubt the time share salesmen spend much time going over this part. (wink)

There are companies that specialize in getting rid of time shares for a fee, typically $3000 or so. My understanding is they basically force the time share companies to void the contract and take the Deed back. I don't know how that works exactly. I only see it as a sign of how TERRIBLE time shares really are.

Any industry that has another industry dedicated to getting out of your contract in the first industry is probably not a good idea. :P

Timeshares, as far as I'm aware, take many different forms. Sometimes you own a fixed week, but no deed. Sometimes there's deeded property, like when you have someone saying "I've paid off my time share, but..." There's deeded property with an expiration date. (Rare.) There's life property. (It goes back to the company upon your death.) There's floating time (like Right To Use, or RTU. This might expire in a certain year, or it might go on in perpetuity.) There's points.

So a lot of this is going to be case-by-case regarding the details of a specific scenario, rather than being able to talk broadly about things in general.

I remember when I was researching credit cards, I came across things like Club Wyndham or Hilton Grand Vacations. It sounded really spiffy, having a points-based system that wouldn't tie you to just one location, but you'd have the flexibility to book a resort vacation anywhere that hotel chain had a property-- whether it was Honolulu or New Zealand or Brazil or Italy or wherever.

Found this online:

Even though your timeshare may pass on to your children upon your death, they aren't forced to accept it. By completing a written disclaimer document, your children can decline the timeshare. Specific requirements may differ among states, but a letter or statement refusing the timeshare is generally acceptable. Your children only have nine months from the date of your death to submit the disclaimer to the court. Once the disclaimer is approved, it's irrevocable. The asset will pass to the next beneficiary in line.

Options

If you don't want to burden your heirs with the responsibility of your timeshare, get rid of it while the contract is still in your name. Although timeshare agreements are designed to last indefinitely, there are potential escape routes. You can have an attorney review your contract to check for discrepancies. If the sales representative or resort misinterpreted the facts to lure you into the sale, you may have a legal way out. Selling the timeshare also cancels the contract. You'll most likely lose some money, but you'll eliminate the obligation to pay maintenance fees year after year. A lesser-known option is a deed-back. If you own the timeshare, contact the resort to inquire about a deed-back program, allowing you to give back the timeshare and relinquish ownership rights. You'll need to negotiate directly with the lender to complete a deed in lieu of foreclosure if there's a mortgage on the timeshare.

Found this online:

Even though your timeshare may pass on to your children upon your death, they aren't forced to accept it. By completing a written disclaimer document, your children can decline the timeshare. Specific requirements may differ among states, but a letter or statement refusing the timeshare is generally acceptable. Your children only have nine months from the date of your death to submit the disclaimer to the court. Once the disclaimer is approved, it's irrevocable. The asset will pass to the next beneficiary in line.

Options

If you don't want to burden your heirs with the responsibility of your timeshare, get rid of it while the contract is still in your name. Although timeshare agreements are designed to last indefinitely, there are potential escape routes. You can have an attorney review your contract to check for discrepancies. If the sales representative or resort misinterpreted the facts to lure you into the sale, you may have a legal way out. Selling the timeshare also cancels the contract. You'll most likely lose some money, but you'll eliminate the obligation to pay maintenance fees year after year. A lesser-known option is a deed-back. If you own the timeshare, contact the resort to inquire about a deed-back program, allowing you to give back the timeshare and relinquish ownership rights. You'll need to negotiate directly with the lender to complete a deed in lieu of foreclosure if there's a mortgage on the timeshare.

Unfortunately timeshares are a major waste of money, unless an extremely nice location. At the Beach in coastal USA! Ski timeshare in a very nice resort! Timeshare in Hawaii!

Unfortunately this does not resolve your issue and concern. The problem with many timeshares in not so hot resort areas and locations that are very hard to re-sale the timeshare. AND marketing companies will take your money for a fee and most likely will not get a buyer for the timeshare. Now you are out the fee paid. PLUS if the timeshare value has dropped extremely low in value compared to the original purchase price and the yearly maintenance fee is high and theres a repair/remodel assessment of the timeshare and its lower than the market value of the time share this is a problem.

Sid of Mo, I will assume a few things that your parents are living and they still use the timeshare then thats great and they have used it for years. HOWEVER, you do not want the timeshare nor any of your family will want the timeshare.

What if your parents considered two options:

If they owe a balance on the original purchase of the timeshare then they can do a Deed-In-Lieu of Foreclosure back to the bank or timeshare entity that financed it for your parents. Record the Deed-in-Lieu before you send it to the entity that is holding the note on the timeshare.

OR

If the time share is paid off and the only money owed is the yearly fee and/or maybe an HOA update/remodeling cost of the unit. Then have your parents quit claim the property back to the HOA or the company that is owner of the common areas. Do not pay the yearly maintenance fee the timeshare quit claim deed is the payment for the maintenance fee.

Dear Timeshare Maintenance Fee XYZ HOA;

Parents of Sid of MO will no longer pay the yearly maintenance fee and here is the RECORDED Quit Claim Deed for Week # Bldg# Unit#. That's right create the Quit Claim Deed and record it in the county THEN Mail it to the HOA or what every the entity that charges the Yearly Maintenance fee. Please remove our name from your database we no longer have an interest in the Timeshare Week.

Problem solved your parents just sent a recorded deed to the Timeshare Company. Of course if they send a quit claim deed the company will most likely reject it. Yes your parents will the recording fee but thats ok. PLEASE DO NOT donate this timeshare burden to a charity no charity needs the headache of the timeshare.

Timeshares are a pain in many cases.

It looks like you have some good feedback here.

A fallback may be to have your folks will the timeshare to their least favorite relative or whoever they wouldn't mind burdening with this albatross.

Way, way back I built (well I "helped" build) the Galleon Resort in Key West, as well as several other hotels there. It was my first job as a project manager. Basically I was a glorified crew leader. Anyway I got to know some of the timeshare sales people. (They had cookies in their office.)

What a SCAM! I heard the sales people later got jobs at Guantanamo Bay waterboarding terrorists. That was nothing compared to what the tourists on vacation suffered.

Never, ever, under any circumstance, buy a fractional ownership deal. Your fingernails will grow back, but your wallet will never recover!

someone gave my son in law and me their local timeshare .

It is $700 a year split between us. he was tired of the $$$$$ as he didn't use it

We both go to the local resorts (2) and use the massive pools , lagoons, water slides etc with the kids and use the other facilities. We can bring up to 12 people so we often get a group together

because it is a valuable destination we can swap it for 2 - 1 week vacations in the winter and we pick a place warm and get a free vacation at those resorts

On the same topic - if the timeshare you bought suffers a disaster, are you still obligated?

With all the hurricanes, tornadoes, floods, etc. If a timeshare building is destroyed - is the contract still in force?

On the same topic - if the timeshare you bought suffers a disaster, are you still obligated?

With all the hurricanes, tornadoes, floods, etc. If a timeshare building is destroyed - is the contract still in force?

Way back when I was 19 I bought some vacant land in an HOA at a tax sale for next to nothing. It turned out to be a waste and a lesson learned. I then learned there were a bunch of people who were trying to get out from owning land there and contacted a local lawyer who was setting up a corporation to receive the land (for a fee), maybe the corp would make the first yearly payment (to prove to be on the up and up), then the corp would stop paying and force the HOA to foreclose for the annual HOA fee. I didn't go that route, I just let the county take it back for taxes, I couldn't sell it or even give it away. I was out of state so the HOA didn't give chase even though I owned a house in my home state.

If I was stuck in a time share, I would set up a dummy corp, pay an annual mantainance or two and then just walk away. I very much doubt an out of state time share would give too much chase, chasing with lawyers costs them money. I wonder if anyone has heard first hand how or if they would come after you? As much as they have contracts and terms to protect themselves, victims can protect themselves after the fact too with contracts, corps and or trusts.