Do You Inherit Your Parents' Timeshare? Ownership Rules, Risks, and Family Tips

Ever found an old timeshare deed tucked away with your parents’ keepsakes and wondered if it’s quietly waiting to pounce on your wallet? Turns out, timeshares are not just vacations you can enjoy or escape—you might actually be stuck inheriting one when the original owner passes away. People assume “inheriting” only means expensive jewelry or grandma’s house. But timeshares? They’re a whole different story. Some families don’t even know timeshares can be inherited until a bill lands in their mailbox. Here’s what makes timeshare inheritance surprisingly tricky—and why it could mean more headache than holiday.

Understanding Timeshare Ownership: Not Like Grandma’s China

Timeshares work differently from most things you inherit. When you think property, you probably picture tangible things like a house or car. But timeshares are slices of both time and property. Most are sold as ‘deeded ownership,’ which means you own a small piece of real estate tied to a specific week or set of weeks each year. Other times, it’s more like a right-to-use contract, not outright ownership, lasting for a fixed number of years. Either way, those contracts don’t quietly expire—they hang on, sometimes for generations, unless you take action.

Legally, timeshare interests get treated as property when someone dies. That means they usually pass on to heirs under the deceased’s will, much like any home, car, or antique collection. No will? Then local “intestate succession laws” come into play—the government’s rules about who gets what when there’s no say from the original owner. New Zealand, the US, and Australia all treat timeshares as inheritances, though the fine details change by location and contract type. French resorts have different laws than Florida’s Disney Vacation Club. Better look at the fine print.

But here’s a detail that catches people off-guard—along with the timeshare itself, the financial obligations also “transfer” to you. Annual fees, special assessments, legal costs, and those surprise maintenance bills come with the package. According to the American Resort Development Association, the average annual maintenance fee climbs above USD $1,000, and can increase yearly. Even worse, fees usually don’t stop even if you skip the holiday that year. Family feuds often break out when siblings realize what they’ve actually inherited is a never-ending bill.

How Timeshare Inheritance Actually Works

So, let’s pin down what really happens when someone passes away owning a timeshare. First up: the legal concept of “probate.” This is the court process for transferring an estate’s property after the owner’s death. With a timeshare, that process is pretty much unavoidable, especially if it’s deeded property. The timeshare company, or the management association, will be notified once the owner dies. The executor of the estate—usually a family member or someone picked in the will—is responsible for dealing with the transfer. If your parents set up their timeshare in a trust, the rules might vary and probate might not be needed at all. But for most families, some kind of government paperwork is waiting in your future.

Now, what if no one wants it? Contrary to what timeshare salesmen claim, you don’t actually have to accept a timeshare inheritance. You can refuse, or legally “disclaim,” your share. But if even one heir says yes, the timeshare—and its bills—are theirs. If you walk away, the executor (or the court) may try to sell, transfer, or hand back the timeshare to the resort company, though that process is rarely straightforward. Plenty of companies resist taking them back unless all fees are paid up.

Another wrinkle: debts and taxes don’t just vanish. Annual fees, overdue payments, and maintenance charges still sit on the property, and creditors can claim against the estate before anything gets passed on to heirs. Occasionally, the company can foreclose and take the timeshare back if fees aren’t paid. But this hurts your credit rating and can drag out for years.

• If you inherit with siblings or other heirs, ownership can be divided. That means negotiating who pays annual bills or who gets to use the timeshare.
• Some countries require heirs to formally accept or reject their share within a set window—sometimes just a few weeks after death.
• If you inherit a right-to-use contract rather than a deed, you might just be picking up where your parents left off: annual payments, expiration dates, and tight usage rules.

By the way, timeshare companies have figured out inheritance confusion keeps people on the hook. Read your parents’ master deed or contract! It spells out what happens if the owner dies. You might spot a “right of survivorship” clause—if so, it passes directly to a spouse or co-owner first, then to heirs. Not everyone checks the paperwork, but skip it at your peril.

The Ups and Downs: Risks and Benefits of Inheriting a Timeshare

It sounds “fun” to inherit a permanent holiday slot, but these perks come with a pile of fine print. First, the pitfalls: Annual maintenance fees can skyrocket as resorts age and facilities need repair. Resorts nearly everywhere, from Rotorua to the Gold Coast, review annual budgets and raise fees if needed—there’s no legal cap, either. And if the property itself devalues (which happens more often than real estate agents want to admit), you’re stuck paying more than what the timeshare is worth on the open market. A recent study in the US found more than 80% of timeshares lose value over time, and their resale market is almost non-existent.

But hey, not everything is a horror story. Some families genuinely enjoy having guaranteed access every year. If the resort is located somewhere you actually want to visit—think Queenstown ski slopes or Bali beaches—it can be a nice perk. Also, points-based timeshares sometimes let you swap holidays around the world. But these benefits only really shine if you’re organized, can actually use the time, and don’t mind the recurring costs.

• Timeshare fees keep going, even if you don’t visit.
• Missed fees can mean late charges or collection agencies chasing you.
• Your credit score can take a hit if you ignore bills after inheriting.
• You might need to pay taxes, though most regions don’t add extra inheritance tax unless it’s a high-value resort
• Resale isn’t a quick fix—most resale timeshares sell for less than 30% of their original price.

For parents, a key tip: Talk to your kids before you add them to your timeshare contract. I’ve seen families fall out because a parent thought they were giving a gift, but the kids only saw an endless bill. My neighbor in Takapuna paid over $5,000 in fees before realizing she could have simply refused the inheritance. You can ask in advance how the management company handles death—some offer a free “deed-back” program or buy-back scheme, but very few advertise it (and those that do might only accept fully paid-up deeds).

What Should You Do If You Might Inherit a Timeshare?

If you’re staring down the barrel of a potential timeshare inheritance, don’t panic. The best move is to get ahead of the paperwork and ask the right questions before anyone passes away. Here’s what to do:

• Find your parents’ deed or contract and scan for any survivorship clauses or termination rules.
• Ask the timeshare provider for a current and complete statement of all fees, bills, and obligations.
• Check if your parents made a will or set up a trust—this can change the process and timeline.
• Research whether you can legally disclaim or refuse your inheritance based on your local laws—NZ, the UK, US, and Oz all have rules for “affirmative refusal.”
• Get advice from a local lawyer, especially someone with knowledge about estates and property law.
• See if your siblings or co-heirs want to share the property, and agree in writing who pays what.
• Ask the resort about any buyback, donation, or surrender program, and their process for vesting ownership in new heirs.
• Decide early—most regions only allow a few months for you to accept, sell, or turn down a timeshare before automatic transfer occurs.

One thing you can’t ignore: Someone will have to pay any outstanding bills before a timeshare changes hands, no matter whether you accept or refuse. If debts pile up, it can delay settling the estate, ruin credit scores, or create bad blood in the family. That’s why sometimes a quick sale—however little you might get for it—outscores holding onto a property you’ll never use. One Auckland family I know managed to gift their Florida timeshare to a charity, avoiding angry siblings and a balance of over $6,000 in missed fees. Thinking outside the box pays off.

For those who want to keep it, being proactive helps. Call the timeshare company and get transferred ownership settled quickly; you might get early bird discounts or offers not shown in the contract. Watch out for scammers offering “fast” sales or releases—lots of timeshare fraud happens after a death when families are desperate.

Smart Tips to Dodging a Timeshare Trap

Alright, no magic wand can wave away a timeshare you don’t want. But you’ve got tools at your disposal if you move fast and don’t shy away from paperwork. Here are some quick tips I’d share with any mate facing a surprise timeshare in the will:

1. If you don’t want to inherit, get legal help pronto to formally refuse. Don’t just ignore letters or bills—the clock ticks fast in estate law.
2. If the timeshare company offers a deed-back, take them up right away—don’t wait for the estate to rack up fees.
3. List your unwanted timeshare for sale but be realistic; expect to get pennies on the dollar or even give it away.
4. Don’t assume charities want timeshares. A few do, but only fully paid-up ones with low annual fees and good usage. Still, it’s worth checking local organizations.
5. If you actually want to keep it, re-title the timeshare with your name quickly and pay all back fees up front. This keeps you in the good books with the resort and avoids extra hassles.
6. Keep the conversation going with your family. Surprises rarely go down well—especially financial ones. A quick group chat can avoid years of silent festering.
7. Beware solicitors or “exit companies” that promise a magic solution for a fat fee. At least 40% of people who try these services report zero results in the EU and US legal watchdog surveys.

Remember, timeshares lived their glory days in the '90s when travel was less flexible and predictable. These days, younger generations (mine included—and in a few years, my kid Elara’s) want more freedom and fewer scheduled bills. If your parents bring up their timeshare, thank them, but ask for all the facts before you pack your bags for a “free week” in Gold Coast or Fiji. There’s a decent chance you’re not just inheriting memories but a financial anchor, too. Being informed is your real ticket to freedom.