Timeshares are a popular piece of property for people who enjoy vacationing. But timeshares can create complications when it comes to estate planning. If you have a timeshare you need to consider how it will be handled in the event of your death. You may have some options in how to handle the transfer.
It is important to investigate what documents the timeshare company requires to leave your interest to a third party. They may require that additional forms be completed so that they can bill the beneficiary for the annual maintenance fees or other charges once you have died.
One way of leaving your timeshare to a beneficiary after your death is to modify your will or revocable trust. The modification should include a specific section in the document that describes the timeshare and makes a specific bequest to the designated heir or heirs. After your death, the executor or trustee will be the one that handles the documents needed to transfer title to your heir. If the timeshare is outside your state of residence and is an actual real estate interest, meaning that you have a deed giving you title to a certain number of weeks, a probate in the state where the time share is located, called ancillary probate, may be necessary. Whether ancillary probate is needed will depend upon the value of the timeshare and the state law.
Another way you could accomplish this goal is to execute what is called a “transfer on death” deed. However, not all states have legislation that permits this so it is imperative that you check state law or consult with an attorney in the state where the time share is located. A transfer on death deed is basically like a beneficiary designation for a piece of real estate. Your beneficiary would submit a survivorship affidavit after your death to prove that you have died. Once this document is recorded the beneficiary would become the title owner.
If you want to do your best to ensure that your loved ones inherit your time share, you should gather your timeshare documents and consult with an experienced estate planning attorney today.