Most people know what should happen to their house when they die.
They know who gets the bank accounts. They have beneficiaries on retirement accounts. Their will says who receives their personal property.
Then the estate attorney asks:
“Do you own any other real estate?”
And the client says:
“Well…we have a timeshare.”
That seemingly small asset can create a surprisingly large estate-administration problem.
The complication is that “timeshare” is not one uniform type of property. Depending upon the company, resort, purchase date and particular program, the owner may have deeded real estate, points associated with a deeded interest, a contractual membership, or some combination of those rights.
And the procedures following an owner’s death can vary significantly among companies.
Here is a closer look at several of the major vacation-ownership companies and why your estate plan should specifically address what happens to your timeshare.
1. Marriott Vacation Club
Marriott Vacation Club is one of the largest names in vacation ownership, but saying that someone “owns Marriott” doesn’t necessarily tell an estate attorney enough.
An owner may have a deeded week, an interest associated with a points-based program, or another form of vacation ownership.
That distinction matters after death.
If the deceased owner holds deeded real estate, the executor or trustee must determine where the property is located, how it is titled and whether probate or another transfer procedure is necessary in that jurisdiction.
This can become especially important when the owner lives in one state and the resort is located in another.
Consider a Pennsylvania resident who owns a deeded Marriott timeshare in Florida.
The owner may have a Pennsylvania probate estate, but the Florida timeshare is an interest in Florida real property. The personal representative should therefore determine whether an ancillary Florida proceeding or another authorized transfer procedure is required.
The estate also needs to determine:
- whether another person is already a co-owner;
- whether survivorship rights apply;
- whether the interest is held in a trust;
- whether money remains due on the purchase;
- whether maintenance fees are current;
- what Marriott requires to recognize the successor owner; and
- whether the intended beneficiary actually wants the ownership.
Estate-planning lesson: Don’t simply write “Marriott timeshare” on your asset list. Keep the deed, membership information and contract with your estate-planning records.
2. Disney Vacation Club
Disney Vacation Club presents a particularly interesting estate-planning issue because many families view their DVC ownership as part investment, part vacation asset and part family tradition.
Parents may assume:
“The kids love Disney. Of course they’ll want this.”
Maybe.
But the children who enjoy staying at Disney resorts aren’t necessarily the children who want responsibility for decades of dues.
Disney has established procedures for changing ownership of DVC interests. Its published ownership-transfer materials instruct owners to provide Disney with a copy of the newly recorded deed and a New Owner Information Form after a transfer. Disney also specifically addresses transfers to trusts, stating that all trustees will be recognized as members on the membership.
That tells us something important from an estate-planning perspective:
Changing the beneficiary in your will is not necessarily the same thing as changing Disney’s ownership records.
If the DVC interest is deeded, the estate may need to address the underlying real-property interest and then satisfy Disney’s administrative requirements to recognize the new owner.
A family might therefore need to deal with:
- probate or trust administration;
- preparation and recording of an appropriate deed;
- Disney’s transfer documentation;
- outstanding dues or obligations; and
- updating Disney’s membership records.
This is also an area where a revocable trust may deserve consideration. Disney expressly recognizes transfers to trusts, although owners should have the specific interest and current DVC documents reviewed before making a transfer.
Estate-planning lesson: If your Disney Vacation Club membership is supposed to become a multigenerational family asset, plan for it as an asset—not merely as a vacation reservation system.
3. Club Wyndham
Club Wyndham illustrates why the first question after an owner’s death should often be:
“Who else is currently listed as an owner?”
Wyndham publishes an ownership-change procedure specifically addressing the death of a co-owner. Its current guidance states that when a co-owner dies, a copy of the death certificate can be uploaded to request removal of the deceased co-owner from the Club Wyndham account. Wyndham asks that the request include the applicable contract or member number.
That may make administration considerably different when there is a surviving co-owner than when the deceased person was the sole owner.
But don’t confuse removing a deceased person’s name from Wyndham’s internal records with resolving every possible probate or title issue.
The estate still needs to determine:
- exactly what the deceased owned;
- whether it was deeded;
- how title was held;
- whether survivorship applies;
- whether probate is required;
- whether a trust owns the interest;
- whether there is an outstanding loan; and
- who becomes responsible for future fees.
Estate-planning lesson: Keep your Club Wyndham contract or membership number with your estate records. Wyndham specifically requests that information when handling an ownership change after a co-owner’s death.
4. Westgate Resorts
Westgate provides unusually direct public information about what it believes happens when an owner dies.
Westgate explains that after an owner’s death, a timeshare may become part of the owner’s estate and that the associated benefits and obligations can pass through the estate. It also warns that if required payments or maintenance fees aren’t made during probate, foreclosure may ultimately become an issue.
That last point is important.
Probate does not put the timeshare into suspended animation.
The owner died.
The maintenance-fee bill didn’t.
Westgate states that the executor is responsible for ensuring maintenance fees are paid while its timeshare is in probate. It also discusses the possibility of using a revocable trust to keep a timeshare out of probate, while appropriately recommending that owners obtain professional legal advice.
Westgate also operates what it calls its Legacy Program, through which qualifying owners may explore options that include returning ownership to the developer, understanding resale possibilities or transitioning ownership to another person.
Westgate specifically says its program considers individual circumstances and that owners who qualify may have an opportunity to relinquish their ownership and eliminate future maintenance-fee obligations.
It also publicly discusses death-related situations. Westgate says that following the death of a joint owner, a surviving owner may in some circumstances have an option to surrender the timeshare, subject to applicable conditions.
This creates an important planning opportunity.
If you’re older, your children don’t want the timeshare and you’re already reconsidering ownership, dealing with Westgate during your lifetime may be substantially easier than making your executor solve the problem after your death.
5. Hilton Grand Vacations
Hilton Grand Vacations is another situation where owners should identify precisely what they own rather than simply telling their estate-planning attorney:
“We have a Hilton timeshare.”
Hilton Grand Vacations has long operated as a distinct vacation-ownership business associated with the Hilton brand; Hilton spun off its timeshare business as a separate company beginning in 2017.
From an estate-administration perspective, the important questions concern the particular HGV ownership rather than the Hilton name.
The executor should locate:
- the deed, if any;
- purchase contract;
- membership or account number;
- loan documents;
- annual dues information;
- resort location;
- ownership names; and
- current HGV transfer requirements.
If real estate is involved, the law where that real estate is situated can become relevant to the transfer at death.
The estate should contact HGV regarding its current deceased-owner and ownership-transfer requirements rather than assuming the same procedure applies to every Hilton-branded vacation interest.
Estate-planning lesson: Brand name isn’t enough. Your estate file should show exactly what HGV interest you own.
6. What About Bluegreen Vacations?
Bluegreen Vacations owners face the same fundamental estate-planning question.
What legal interest does the owner actually possess?
Points can make vacation ownership feel like a club membership rather than property. But the consumer-facing points system doesn’t necessarily answer how the underlying ownership interest must be administered following death.
The executor needs to examine the owner’s actual purchase and ownership documents.
Don’t assume:
“They’re only points, so there can’t be a probate issue.”
There may be more behind those points than the online reservation dashboard suggests.
The estate should determine whether there is an underlying deeded interest, what property is involved, how ownership is titled, and what the company’s current procedures require after an owner’s death.
7. Holiday Inn Club Vacations
The same caution applies to Holiday Inn Club Vacations.
Owners and executors should not make estate-planning decisions based simply upon how the vacation program is marketed.
The governing ownership documents matter.
If Dad says:
“I own 200,000 vacation points,”
the estate attorney’s next question should be:
“Show me the documents.”
The estate needs to distinguish among contractual benefits, membership privileges and actual property ownership.
That distinction can determine whether an executor is administering an estate asset, transferring real property, dealing with contractual succession rights, or handling several of those things simultaneously.
8. What Happens to Maintenance Fees During Probate?
This may be the single most overlooked issue.
Death does not necessarily terminate the financial obligations associated with a timeshare.
Westgate, for example, expressly warns that maintenance fees should continue to be addressed while a timeshare is in probate and that failure to make required payments can ultimately lead to collection or foreclosure consequences.
Imagine this scenario.
Mom dies in February.
Her executor begins administering the estate.
The timeshare doesn’t appear valuable, so everyone ignores it.
In June, another maintenance-fee notice arrives.
Then a late notice.
Then collection correspondence.
Meanwhile, none of the three children wants the property.
What started as an afterthought has become an estate liability.
That’s why executors should identify timeshare interests immediately, not at the end of probate.
9. Can the Estate Just Give the Timeshare Back?
Not necessarily.
This is one of the biggest misconceptions surrounding timeshares.
You generally cannot assume that an executor can mail the resort a deed and write:
“No thanks.”
A developer may have a voluntary surrender, deed-back or exit program, but eligibility and terms can vary.
Westgate, for example, expressly provides a Legacy Program through which qualifying owners can explore developer-approved exit options.
Westgate also explains that deeded timeshare interests can be transferred to family members and describes a process involving developer approval and deed documentation.
Other companies have their own procedures.
The important distinction is:
A beneficiary’s right to disclaim an inheritance is not necessarily the same thing as the estate’s ability to force the developer to accept the property back.
Those are separate legal questions.
10. What If the Beneficiary Says, “I Don’t Want It”?
That needs to be addressed quickly.
A beneficiary may have the ability to disclaim inherited property under applicable state and federal law.
Westgate itself recognizes that an inheritance can potentially be declined and advises heirs to investigate the applicable procedure.
But disclaimers can be technical.
There may be:
- deadlines;
- written-document requirements;
- filing or delivery requirements;
- restrictions once benefits have been accepted; and
- tax consequences.
An heir who doesn’t want a timeshare should therefore speak with an estate attorney before using it, transferring it or otherwise exercising ownership rights.
Don’t spend six months enjoying the property and then announce:
“Actually, I disclaim it.”
By then, the legal analysis may be considerably more complicated.
11. The Worst Case: Every Beneficiary Says No
Here’s the scenario families need to understand.
Dad owns a timeshare.
Dad dies.
His will leaves everything equally to his three children.
None wants the timeshare.
Child #1 disclaims.
Child #2 disclaims.
Child #3 disclaims.
That doesn’t necessarily make the property evaporate.
The executor still needs to determine who receives the interest under the will, applicable disclaimer rules and state succession law.
Depending upon the circumstances, another contingent beneficiary could become relevant.
Eventually, the estate may need to explore transfer, surrender, sale, foreclosure or another resolution.
Westgate acknowledges this possibility in its own explanation of timeshares after death, noting that when heirs decline an interest, foreclosure can potentially become the ultimate outcome, with estate assets potentially implicated depending upon applicable law and circumstances.
This is why “My kids can just refuse it” isn’t a complete estate plan.
12. Should You Put a Timeshare in a Revocable Trust?
Sometimes this can make considerable sense, particularly for deeded property located outside your home state.
Suppose you live in Pennsylvania and own:
- your Pennsylvania residence;
- Pennsylvania bank accounts;
- a Florida Disney Vacation Club interest; and
- a Nevada vacation ownership interest.
One objective of trust planning might be to reduce the likelihood that your executor will have to address separate probate proceedings involving out-of-state real estate.
But every transfer should be evaluated individually.
Disney, for example, expressly provides procedures for transferring ownership interests into trusts and says that all trustees will be recognized as members.
Westgate likewise identifies a revocable trust as one potential probate-planning technique, while advising owners to consult legal counsel.
But remember:
A trust can solve a probate problem without solving a timeshare problem.
Putting a $2,000-per-year maintenance obligation into your trust doesn’t make the $2,000 annual bill disappear.
13. The Timeshare Inventory Every Estate Plan Should Include
If you own Marriott Vacation Club, Disney Vacation Club, Club Wyndham, Westgate, Hilton Grand Vacations, Bluegreen, Holiday Inn Club Vacations or another vacation ownership product, create a separate timeshare information sheet.
Include:
Company:
Disney Vacation Club
Resort:
Example: Disney’s Saratoga Springs Resort
Ownership:
Deeded / points / right-to-use / unknown
Deed location:
County and state
Owners listed:
Husband and wife / individual / trust
Contract number:
Membership number:
Loan balance:
Annual maintenance fees:
Next payment date:
Developer contact information:
Intended beneficiary:
Does beneficiary actually want it?
Yes / No / Haven’t Asked
Exit program investigated?
Yes / No
That last question may be the most important one.
14. Don’t Automatically Add Your Children to the Deed
Some timeshare companies discuss adding or transferring ownership to family members.
That doesn’t mean doing so is always good estate planning.
Westgate, for example, expressly discusses transferring deeded timeshare ownership to family members. Wyndham likewise maintains formal procedures for adding and removing owners.
But adding your child as an owner during your lifetime can be very different from leaving property to that child at death.
Once your child becomes a present owner, you’ve potentially changed:
- property rights;
- creditor exposure;
- control;
- tax treatment;
- the child’s ability to refuse the property later; and
- the procedure required to get out of the ownership.
Don’t put your daughter’s name on the timeshare deed merely because someone tells you:
“It’ll make things easier when you’re gone.”
Find out exactly what the legal consequences are first.
15. The Question Every Timeshare Owner Should Ask Their Children
Estate planning usually involves asking:
“Who should receive this asset?”
Timeshares require a different question:
“Does anyone actually want this asset?”
Ask while you’re alive.
You might be surprised.
Your children may have wonderful memories of Disney.
They may love the annual trip to Aruba.
They may have spent every Thanksgiving at the Marriott resort.
And they still may have absolutely no interest in assuming ownership.
If nobody wants it, that is incredibly useful information.
It gives you time to investigate the developer’s transfer, resale, surrender or exit options before the timeshare becomes your executor’s problem.
The Bottom Line
A timeshare should never be the forgotten line at the bottom of an estate-planning questionnaire.
For Disney Vacation Club, ownership changes can involve recorded deed documentation and Disney’s membership-transfer procedures.
For Club Wyndham, the company has a specific procedure for removing a deceased co-owner from its records, including submission of a death certificate.
For Westgate, the company expressly discusses probate, continuing maintenance obligations, inheritance, disclaimers and its Legacy Program for qualifying owners seeking exit options.
For Marriott Vacation Club, Hilton Grand Vacations, Bluegreen, Holiday Inn Club Vacations and other programs, the executor should determine the exact ownership structure and obtain the company’s current deceased-owner transfer requirements rather than assuming that all timeshares are handled alike.
The best time to figure this out isn’t after Mom dies and three siblings are staring at a maintenance-fee bill for a timeshare none of them wants.
It’s while Mom is alive.
Find the deed.
Find the contract.
Determine what you actually own.
Ask who wants it.
Determine what happens at death.
And if nobody wants it, investigate whether there’s a responsible way to dispose of it during your lifetime.
Because sometimes the most thoughtful estate-planning decision isn’t deciding who gets the timeshare.
It’s making sure your children don’t have to deal with it at all.
This article is for general informational purposes only and is not legal or tax advice. Timeshare structures, probate laws, disclaimer rules, deed requirements and developer policies vary significantly by jurisdiction, resort and individual contract. Company policies can also change. Owners, executors and beneficiaries should have the actual deed, contract and current developer requirements reviewed before taking action.
