Timeshares can be a source of vacation enjoyment, but they can also become an unexpected financial burden when inherited. Whether you've been left a timeshare in a will or are concerned about inheriting one while your parents are still alive, understanding your options is crucial. In this article, we’ll explore what timeshare inheritance entails, potential pitfalls, and whether you can cancel or refuse an inherited timeshare altogether.

What Is a Timeshare?

A timeshare is a vacation property arrangement where multiple owners share usage rights, typically for a specific period each year. These agreements often come with annual maintenance fees and other financial obligations. Timeshares are usually structured as either deeded (where ownership is akin to real estate) or right-to-use (a contractual agreement without actual property ownership). While they can provide a great vacation experience, they can also become a financial commitment that lasts far longer than expected.

Inheriting a Timeshare: What Happens?

When a person passes away, their assets—including timeshares—are transferred to their heirs according to a will or state inheritance laws. If the deceased had a deeded timeshare, it functions similarly to real estate inheritance, meaning the legal ownership is passed down. For right-to-use timeshares, the contractual obligations may still transfer depending on the agreement.

If your parents are still alive and own a timeshare, you may want to discuss their plans for it. Some owners mistakenly believe that their children would love to inherit the property, but this is not always the case. Many heirs find that the financial and logistical burdens outweigh any vacation perks.

What to Watch Out For When Inheriting a Timeshare

1. Financial Obligations – Inherited timeshares come with maintenance fees, special assessments, and potential loan payments. These costs can rise over time and may exceed the value of the timeshare itself.
2. Difficulty Selling – Timeshares have a notoriously weak resale market, often fetching much lower prices than their original purchase cost.
3. Legal Obligations – Inheriting a deeded timeshare means assuming legal responsibility for its fees and obligations unless proper action is taken to refuse the inheritance.
4. Scams – Be wary of companies offering to "help" get rid of a timeshare for an upfront fee. Many of these are scams targeting distressed timeshare owners.

What If the Timeshare Is Fully Paid Off?

If the timeshare is fully paid off, the main financial concern is the ongoing maintenance fees and assessments. Even without a mortgage or loan, these costs can still be significant over time. Some options include:

• Using the Timeshare – If you enjoy vacationing at the property, keeping it may be worthwhile.
• Renting It Out – Some timeshare agreements allow owners to rent out their usage period to recoup some of the costs.
• Transferring It – You may be able to transfer the timeshare to another family member or friend who is interested.
• Donating It – Some charities accept timeshares as donations, though many have strict requirements.

Can You Refuse or Cancel an Inherited Timeshare?

Yes, there are several ways to refuse or cancel an inherited timeshare:

1. Refusing the Inheritance (Disclaimer of Interest) – If you haven’t accepted the timeshare yet, you can file a legal disclaimer stating that you do not wish to inherit it. This must typically be done within a certain timeframe and in accordance with state laws.
2. Negotiating with the Resort – Some timeshare companies may accept a deed-back program, allowing you to return the timeshare rather than inheriting its obligations.
3. Selling or Gifting the Timeshare – If you inherit a timeshare but do not want it, you can attempt to sell or transfer it to someone else, though this can be challenging.
4. Consulting a Timeshare Exit Company – If you've already accepted the timeshare and regret it, you might consider working with a reputable timeshare exit company. These companies specialize in helping owners legally get out of their contracts, but be cautious and research thoroughly to avoid scams.
5. Seeking Legal Assistance – If you are already listed as an owner, a legal professional can help you explore options such as title transfers or possible contract exits.

Final Thoughts

Inheriting a timeshare may not always be a welcome gift, and understanding your options is crucial to avoiding unnecessary financial burdens. If you find yourself in this situation, take proactive steps to refuse or exit the timeshare as soon as possible. If you've already accepted ownership and want out, explore your options, including working with reputable timeshare exit companies or seeking legal guidance. Always consult legal or financial professionals before making any decisions to ensure you make the best choice for your circumstances.