Remember that fabulous vacation your family had to Florida, Mexico or some other vacation paradise far from Minnesota winters?
While you were there, a charming salesman persuaded you to buy a timeshare in a condominium. (Of course, all timeshare salespersons are charming. Otherwise they would probably be working in the maintenance shop.)
The sales rep most likely assured you that you could easily pass the timeshare on to your kids when you died.
Is that true? Well, maybe or maybe not.
First of all, you should examine your contract with the company that operates the timeshare development. There may be provisions in the contract that limit the ability to transfer the timeshare to your heirs or family members. If there are too many burdensome steps, you may want to sell or dispose of the timeshare while you are alive and well.
What's more, is the timeshare considered to be a "real estate" interest or a "contract" interest? This can be important because if it is regarded as real estate, after your death your heirs might have to start a probate proceeding in the state or country where the timeshare is located.
On the other hand, if the timeshare is considered a contract, your heirs may be able to receive the timeshare from your estate without starting a probate proceeding in a faraway state or country.
How can you find out? Once again, you should read the fine print in the contract you have with the timeshare company.
If the contract doesn't show you whether the timeshare is considered real estate or a contract interest, it may be necessary to have a professional research the law in the state or country where the timeshare is located.
Your estate plan, whether it is a will or a trust, should address who you want to get the timeshare when you pass away. It may also be possible to do a "transfer on death" directive depending on the law in the place where the timeshare is located.
In any case, you should discuss your options with a qualified estate planning attorney.
Please share this Blog with any of your friends or neighbors who have a Timeshare.