One of the most persistent myths in the timeshare industry is that you are legally forced to inherit your parents' timeshare—and the lifelong maintenance fees that come with it. Many owners are actively terrified that they are leaving a financial burden to their children.
The truth? You absolutely do not have to accept an inherited timeshare.
However, there is a very specific legal process you must follow to properly refuse it. If you handle the estate incorrectly, you might accidentally assume liability. Here is the definitive guide on how timeshare inheritance works and how to protect your family.
How Timeshares Are Inherited
Timeshares are inheritances just like cash, jewelry, or a family home. Most timeshare contracts feature a “Perpetuity Clause”. This means the contract doesn’t end when the owner dies; it becomes part of their legal estate.
When the estate goes into probate, the Executor is responsible for settling the deceased's debts and distributing assets. During this time, the estate itself is responsible for paying the timeshare maintenance fees.
The "Disclaimer of Interest" Loophole
If you are named as the beneficiary of a timeshare in a will, you have the legal right to say, "No thank you." The legal mechanism for this is called a Disclaimer of Interest (sometimes called a Renunciation of Property).
By filing an official Disclaimer of Interest, you are legally stating that you surrender any right to the asset. Because you never take ownership, you cannot be held responsible for the ongoing maintenance fees.
The 3 Rules of Disclaiming a Timeshare
- Do it quickly: In most U.S. states and for federal tax purposes, you must file the disclaimer within 9 months of the death of the owner (or within 9 months of the beneficiary turning 21).
- Do not use it: This is the most crucial rule. If you use the timeshare, rent out the points, or even pay the maintenance fee yourself after the owner's death, courts will consider that you have "accepted" the asset. Once accepted, you cannot disclaim it. Never pay the maintenance fee with your own money.
- Put it in writing: The disclaimer must be a formal, written legal document, signed, notarized, and delivered to the executor of the estate, the resort/developer, and filed with the probate court handling the estate.
Warning for Executors: If you are the Executor of the estate, do not pay the timeshare fees from your personal account. Pay them only from the estate’s funds. If the estate runs out of money, the resort simply forecloses on the timeshare. The debt dies with the estate.
What Happens to the Timeshare?
If all beneficiaries file a Disclaimer of Interest, what happens to the timeshare?
Since no one claims it, it remains with the estate. If the estate has no other assets to pay the ongoing fees, the timeshare goes into default. The resort developer will eventually foreclose on the property and take it back. Because the original owner is deceased and the heirs disclaimed it, the developer has no one to send to collections. It is a clean break.
A Note for Current Owners
If you currently own a timeshare and are worried about your children, have an honest conversation with them. Ask if they actually want it. If they don't, your best course of action is to try and utilize a developer deedback program (like Club Wyndham's Ovation) or sell it on the secondary market while you are still alive.
Don't leave a legal mess for your kids to clean up. But if you do, ensure they know the phrase: Disclaimer of Interest.