A practical guide to transferring ownership smoothly and avoiding headaches for your family
Passing on a timeshare to a loved one may seem like a thoughtful gesture—after all, it represents years of vacations and memories. However, timeshares can also come with ongoing financial obligations, legal complexity, and long-term commitments that heirs may not want or be prepared to manage.
This guide explains how to pass on a timeshare correctly, the most common pitfalls, and smart alternatives that protect both you and your family.
Why Passing on a Timeshare Can Be Complicated
Unlike a car or a bank account, a timeshare is not a simple asset. In many cases, it’s a lifetime contract with annual maintenance fees that increase over time.
If not handled properly, heirs may:
- Inherit mandatory annual fees
- Become legally responsible without realizing it
- Face collection actions or credit issues
- Struggle to resell or exit the contract later
Understanding your options before transferring ownership is essential.
Option 1: Passing a Timeshare Through a Will or Trust
Including a timeshare in your estate plan is common—but it requires care.
Pros
- Clear legal documentation
- Ownership transfers automatically upon death
- Can be managed through an estate attorney
Cons
- Heirs cannot easily refuse once accepted
- Maintenance fees continue immediately
- Resorts may still require approval of the new owner
Important: Even if listed in a will, most resorts require a separate transfer process and may charge fees.
👉 Best practice: Always confirm with the resort whether heirs must formally accept ownership.
Option 2: Gifting a Timeshare While You’re Alive
Some owners choose to transfer ownership during their lifetime.
Pros
- You control the timing
- Avoid probate delays
- Can ensure the recipient truly wants it
Cons
- Recipient must qualify under resort rules
- Transfer fees can range from hundreds to thousands
- You lose all future usage rights
⚠️ Never gift a timeshare without written confirmation that the recipient understands the financial obligation.
Option 3: Allowing Heirs to Disclaim the Timeshare
In many jurisdictions, heirs can legally refuse (disclaim) inherited property.
Key points
- Must be done quickly after death
- Heir cannot use the timeshare beforehand
- Proper legal paperwork is required
If disclaimed correctly, ownership usually reverts to the estate or resort—but outcomes vary by contract.
Option 4: Exit the Timeshare Before It Becomes an Issue
For many families, the cleanest solution is not passing on the timeshare at all.
Why owners choose this route
- Protect heirs from long-term fees
- Simplify estate planning
- Avoid future legal disputes
- Eliminate uncertainty
This can be done through:
- Resort-approved surrender programs (limited availability)
- Verified resale (rare and often low value)
- Professional timeshare exit assistance (must be vetted carefully)
Common Mistakes to Avoid
❌ Assuming heirs “can just sell it later”
❌ Not reading the original contract
❌ Failing to notify the resort properly
❌ Using unverified exit or resale companies
❌ Waiting until health or finances force rushed decisions
How to Decide What’s Best for Your Family
Ask yourself:
- Do my heirs want this timeshare?
- Can they comfortably afford rising annual fees?
- Is the contract perpetual or fixed-term?
- Does the resort allow easy transfers or surrenders?
If the answer to any of these is unclear, it’s time to explore alternatives.
Final Thoughts
Passing on a timeshare doesn’t have to create stress—but it does require planning. Whether you choose to transfer it responsibly, allow heirs to disclaim it, or exit ownership altogether, the key is acting early and staying informed.
A timeshare should be a legacy of good memories—not an inherited burden.
