Don’t Leave Your Kids a Vacation Bill: Timeshares and Estate Planning

August 27, 2026
Posted by AmyGinsburg

Timeshares are usually purchased with vacations in mind—not death, probate, trusts, and inheritance.

But a timeshare can become one of the more troublesome assets in an estate.

Unlike a bank account that can simply be distributed or a house that may have substantial equity, a timeshare may come with annual maintenance fees, assessments, taxes, loan obligations, transfer restrictions, and little or no resale value. Those obligations do not necessarily disappear when the owner dies.

In fact, the Federal Trade Commission specifically notes that deeded timeshares are considered real property and may be inherited by an owner’s heirs. The FTC also warns consumers that annual maintenance fees typically continue whether or not the owner actually uses the timeshare.

That creates an important estate-planning question:

Are you leaving your family a vacation property—or an annual bill they never asked for?

First: What Exactly Do You Own?

Before deciding how a timeshare should fit into an estate plan, determine exactly what you purchased.

Timeshares can be structured in several different ways.

Deeded Timeshare

With a deeded timeshare, you actually own an interest in real property. You might own, for example, a particular unit for a particular week each year.

Because it is real estate, the interest generally does not simply disappear when you die. It may become part of your estate and ultimately pass to another owner.

The FTC specifically describes deeded timeshares as real property that heirs may inherit.

Right-to-Use Timeshare

Other timeshares don’t involve ownership of the underlying real estate. Instead, the purchaser receives a contractual right to use a property for a specified number of years.

What happens at death depends heavily on the terms of that contract.

Points-Based Vacation Programs

Modern timeshares frequently operate through points. Owners purchase points that can be redeemed at different properties, during different seasons, or for different accommodations.

These arrangements can be even more contract-dependent.

That is why an estate-planning attorney reviewing a timeshare should ideally see more than your most recent maintenance-fee statement. The deed, purchase agreement, membership documents, financing documents, and current program rules can all matter.

The Estate-Planning Mistake: Pretending the Timeshare Doesn’t Exist

Some owners don’t mention their timeshare when preparing an estate plan.

Perhaps they don’t consider it valuable.

Perhaps they paid $20,000 for it years ago but suspect it couldn’t be sold today for $2,000.

Perhaps the family has used it every summer for twenty years, so the owner assumes one of the children will naturally take it over.

None of those are good reasons to ignore it.

Estate planning isn’t limited to deciding who receives valuable property.

It should also address property that may be difficult, expensive, or burdensome to administer.

A timeshare can fit squarely into that category.

Your Children May Not Want Your Timeshare

This is the conversation many families never have.

A Timeshare Can Create a Probate Problem

A deeded timeshare may also create an estate-administration issue because it is real estate.

Suppose you live in Pennsylvania but own a deeded timeshare in Florida.

Your Pennsylvania estate plan may be perfectly organized, but now your executor has to determine how the Florida real estate interest should be handled.

Depending upon how the property is titled and applicable state law, ownership of real estate in another state can potentially require additional probate procedures in the state where the property is located.

That means an asset with very little economic value can potentially create disproportionately large administrative expenses.

Imagine spending thousands of dollars in legal and administrative costs dealing with a timeshare that no beneficiary even wants.

That’s exactly the type of problem estate planning should attempt to identify before death.

Should You Put the Timeshare in Your Revocable Trust?

Sometimes.

If you have a revocable living trust, transferring a properly transferable timeshare interest into the trust may help avoid probate associated with that particular asset.

But this requires an important warning:

Putting a timeshare into a trust does not magically eliminate the timeshare.

It changes ownership.

It does not necessarily eliminate:

maintenance fees;
assessments;
taxes;
reservation fees;
contractual obligations; or
the ultimate question of who receives the interest.

If your trust eventually distributes the timeshare to your daughter, your daughter may still face the same question:

Do I actually want this thing?

Trust planning can solve a probate problem without solving the underlying economic problem.

The resort’s documents should also be reviewed before attempting a transfer because some programs impose transfer procedures, restrictions or fees.

Can Your Children Refuse the Timeshare?

Potentially, yes—and this is extremely important.

An heir generally is not forced to accept every asset that someone attempts to leave to them.

Inheritance law provides procedures through which beneficiaries may disclaim, or refuse, inherited property.

A properly completed disclaimer can allow an heir to essentially say:

“I don’t want this inheritance.”

But disclaimers are highly technical.

For federal tax purposes, a “qualified disclaimer” generally must satisfy requirements under Internal Revenue Code §2518, including being in writing and meeting applicable timing and acceptance requirements. State law can impose additional requirements.

Most importantly, someone considering a disclaimer should obtain advice before acting like the owner.

Using the timeshare, accepting income from it, transferring it, or otherwise accepting benefits associated with the property can potentially affect the ability to disclaim it.

So if Mom dies and leaves you a timeshare you absolutely don’t want, don’t immediately book a final family vacation there and decide afterward how to get rid of it.

Talk to an attorney first.

Don’t Put Your Children’s Names on the Deed Just to “Make Things Easier”

This deserves special attention.

Owners sometimes add children to timeshare deeds because they believe it will simplify things after death.

That can accomplish exactly the opposite.

Once another person’s name is placed on the deed, you may have given that person a present ownership interest.

That can make it considerably more difficult for the child to simply say later:

“I don’t want to inherit this.”

They may already own it.

Adding children to deeds can also have estate-planning, creditor, tax and control consequences that extend far beyond timeshares.

Don’t add a child’s name to a timeshare deed as a DIY estate-planning strategy without first understanding what the transfer actually accomplishes.

What If Nobody Wants It?

Now we reach the difficult part.

Suppose you have three children.

You ask each one whether they want the timeshare.

Child #1 says no.

Child #2 says absolutely not.

Child #3 says:

“Please leave it to Child #1.”

You have learned something valuable while you are still alive.

Now you can investigate your options.

Start with the timeshare company itself.

Ask whether it offers:

voluntary surrender;
deed-back programs;
owner exit programs;
resale assistance;
transfers to another owner; or
other relinquishment procedures.

The FTC specifically recommends finding out whether the timeshare company offers an exit program and how it works.

If you already know nobody in your family wants the property, addressing the problem during your lifetime may be far preferable to leaving your executor to figure it out.

Be Extremely Careful With Timeshare Exit Companies

This area deserves an enormous warning sign.

Timeshare owners desperate to escape rising fees can become attractive targets for scammers.

The FTC has repeatedly warned consumers about companies promising to sell or eliminate timeshares in exchange for substantial upfront payments.

And this isn’t merely theoretical.

In April 2026, a federal court ordered an operator involved in a timeshare-exit scheme to pay $140 million following allegations that the operation defrauded consumers—many of them older adults—out of more than $90 million.

Ironically, one tactic allegedly used by timeshare-exit marketers has been frightening owners into believing their children will inevitably become trapped with their timeshares. The FTC has specifically pointed out that state-law procedures exist that can permit heirs to disclaim timeshare inheritances.

So don’t panic and hand someone $10,000 because they tell you:

“If you don’t hire us today, your children will be stuck paying this forever.”

Investigate first.

Don’t Assume Your Timeshare Is Worth What You Paid for It

This is another important estate-planning issue.

Purchase price and current fair-market value are two very different things.

Someone may have paid $30,000, $50,000 or considerably more for a timeshare interest.

That does not mean the estate owns an asset worth that amount.

The secondary market for some timeshares can be extremely limited. The FTC cautions consumers considering resale not to assume they’ll recover what they originally paid.

Your executor therefore needs realistic information.

Your estate records should identify:

the timeshare company;
property or resort;
account or membership information;
whether the interest is deeded;
where the deed is recorded;
outstanding financing;
annual maintenance fees;
special assessments;
contact information for the resort;
current exit or surrender options; and
where the original documents are stored.

Don’t make your executor reconstruct everything from a mysterious $1,700 charge appearing on your credit-card statement every January.

What About Multiple Children Who Actually Want the Timeshare?

Sometimes the problem is the opposite.

Everyone wants it.

Perhaps your family has vacationed at the same resort for thirty years and your children genuinely want to continue the tradition.

Great—but plan for that too.

Leaving one timeshare equally to four children can create practical questions.

Who gets which week?

Who makes reservations?

Who pays maintenance fees?

What happens when one child stops paying?

Can someone rent out the week?

Who receives the rental income?

Can one sibling sell their interest?

What happens when one child dies?

Now do the same calculation one generation later when four children become eleven grandchildren.

A seemingly simple family vacation tradition can gradually become a complicated shared-property arrangement.

If keeping the timeshare in the family is genuinely important, the estate plan should address management and expenses, not merely ownership.

Should You Leave Money to Pay the Maintenance Fees?

Some owners consider leaving money in trust to cover future timeshare expenses.

That can work in certain circumstances, but ask a more fundamental question first:

Why?

Suppose the annual maintenance fee is $2,000.

Funding twenty years of projected expenses could require a meaningful amount of money, particularly after accounting for potential fee increases and special assessments.

Would your children rather inherit the timeshare plus money earmarked to maintain it—or simply inherit the money?

There isn’t one correct answer.

But it is a conversation worth having.

A Timeshare Estate-Planning Checklist

If you currently own a timeshare, consider taking these steps:

1. Find the documents.
Locate the deed, contract, membership agreement and recent statements.

2. Determine what you actually own.
Is it deeded real estate, a right-to-use arrangement, points, or something else?

3. Determine how it is titled.
Individual name? Joint owners? Trust? Entity?

4. Identify outstanding debt.
Is the purchase price fully paid?

5. Calculate the real annual cost.
Include maintenance fees, taxes, assessments and club or exchange fees.

6. Ask your intended beneficiaries whether they want it.
Do not skip this step.

7. Investigate the resort’s exit options.
You may be able to surrender or transfer the interest during your lifetime.

8. Review your will and trust.
Make sure the timeshare isn’t accidentally swept into a general gift without considering who would receive it.

9. Consider probate consequences.
This is particularly important if a deeded timeshare is located outside your home state.

10. Leave instructions for your executor.
Provide enough information that your family knows exactly what exists and whom to contact.

The Vacation Property That Can Outlive the Vacation

Timeshares occupy a strange place in estate planning.

Emotionally, they may represent decades of family memories.

Legally, however, they can represent real property or contractual rights accompanied by continuing financial obligations.

That’s why the worst estate plan for a timeshare is often no plan at all.

Don’t simply write:

“I leave all of my property equally to my children.”

Then assume everyone will figure it out.

Figure it out now.

Ask your children whether they want the timeshare. Review the ownership documents. Determine whether probate could be required. Investigate transfer or surrender options. And make sure your executor knows exactly what to do with it.

Your estate plan should transfer the things you worked hard to build.

It shouldn’t accidentally transfer a vacation bill your children spend years trying to escape.

This article is for general informational purposes only and does not constitute legal or tax advice. Timeshare ownership structures, contracts, probate procedures, disclaimer requirements and transfer rules vary by state and by timeshare program. Owners and beneficiaries should consult appropriate legal and tax professionals regarding their individual circumstances.