PLACING YOUR TIMESHARE INTO A REVOCABLE TRUST....
The following information is not intended as legal advice. This information is for informational and/or general educational purposes only. For specific help with your individual questions, please consult your legal counsel.
One of the primary sales tactics that timeshare developers use to entice consumers is the ability to pass on your timeshare ownership to your heirs for their continued usage and enjoyment. Since most timeshares are sold as deeded interests in real property, the vacation ownership can be inherited but is subject to probate. Thus, how you currently hold title to the timeshare affects how the property would be transferred upon your death. While most timeshare owners remember to address their vacation ownership properties in their will, that document alone does not actually transfer the ownership. Upon your death, the heirs will have to go through a probate process (the court process required to settle an estate). If your timeshare is located in a different state from your residence, or if you own multiple timeshares in different states- probate will most likely be required in each state and each probate proceeding can cost the estate thousands of dollars in fees. Also, the probate process itself can take a very long time- during which period your heirs may not be able to use the timeshare even though they are still responsible for the continuing maintenance fees and taxes. Proper estate planning will help your family avoid the high costs and headaches!
If two owners, such as husband and wife, own the timeshare together as "Joint Tenants" or as "Tenants by the Entirety," the co-owner will automatically become the sole owner. Or, if your children are included on the title with you- that also can help to delay the costs and aggravation of probate. Regardless, however- eventually there will come a time when probate is required. Also, there are unique problems that can occur when the ownership and the financial responsibility is shared by a number of people. What happens if one of your children cannot afford or doesn't want the responsibility of ownership? What happens if one of the joint owners is impacted by a legal proceeding such as a divorce or bankruptcy? What happens if you later decide you want to sell the timeshare and one of the co-owners isn't willing or able to complete the sale documents? These are all circumstances that have impacted timeshare owners and must be considered.
Many timeshare owners choose to avoid all these problems by placing their vacation ownership deeds into their own revocable living trust, allowing them to eliminate future probate - and also making the future sale or transfer of the timeshare usage a much easier process! Simply changing the trustee, co-trustees, or successor trustees on the revocable trust document will effectively transfer the timeshare usage rights. This amendment process, however- does not actually modify the ownership (the Revocable Trust still retains the deeded ownership), so this stops the timeshare developer from reducing your usage rights or placing additional restrictions on the future timeshare usage as is often the case with a resale or change of ownership on the secondary market.
Each state may have its own unique recording and probate requirements, so please contact an attorney who is licensed in the state where your timeshare resort is located to ensure you have the most up-to-date and accurate information according to your specific situation. You can find helpful information about Revocable Trusts in Florida by CLICKING HERE.
One of the primary sales tactics that timeshare developers use to entice consumers is the ability to pass on your timeshare ownership to your heirs for their continued usage and enjoyment. Since most timeshares are sold as deeded interests in real property, the vacation ownership can be inherited but is subject to probate. Thus, how you currently hold title to the timeshare affects how the property would be transferred upon your death. While most timeshare owners remember to address their vacation ownership properties in their will, that document alone does not actually transfer the ownership. Upon your death, the heirs will have to go through a probate process (the court process required to settle an estate). If your timeshare is located in a different state from your residence, or if you own multiple timeshares in different states- probate will most likely be required in each state and each probate proceeding can cost the estate thousands of dollars in fees. Also, the probate process itself can take a very long time- during which period your heirs may not be able to use the timeshare even though they are still responsible for the continuing maintenance fees and taxes. Proper estate planning will help your family avoid the high costs and headaches!
If two owners, such as husband and wife, own the timeshare together as "Joint Tenants" or as "Tenants by the Entirety," the co-owner will automatically become the sole owner. Or, if your children are included on the title with you- that also can help to delay the costs and aggravation of probate. Regardless, however- eventually there will come a time when probate is required. Also, there are unique problems that can occur when the ownership and the financial responsibility is shared by a number of people. What happens if one of your children cannot afford or doesn't want the responsibility of ownership? What happens if one of the joint owners is impacted by a legal proceeding such as a divorce or bankruptcy? What happens if you later decide you want to sell the timeshare and one of the co-owners isn't willing or able to complete the sale documents? These are all circumstances that have impacted timeshare owners and must be considered.
Many timeshare owners choose to avoid all these problems by placing their vacation ownership deeds into their own revocable living trust, allowing them to eliminate future probate - and also making the future sale or transfer of the timeshare usage a much easier process! Simply changing the trustee, co-trustees, or successor trustees on the revocable trust document will effectively transfer the timeshare usage rights. This amendment process, however- does not actually modify the ownership (the Revocable Trust still retains the deeded ownership), so this stops the timeshare developer from reducing your usage rights or placing additional restrictions on the future timeshare usage as is often the case with a resale or change of ownership on the secondary market.
Each state may have its own unique recording and probate requirements, so please contact an attorney who is licensed in the state where your timeshare resort is located to ensure you have the most up-to-date and accurate information according to your specific situation. You can find helpful information about Revocable Trusts in Florida by CLICKING HERE.