When most people hear timeshare is a shared‑ownership vacation arrangement where multiple buyers own the right to use a property for a set period each year. It’s sold by developers, vacation clubs, or hospitality groups and is usually tied to a fixed week or a floating schedule.
Unlike a typical condo, a timeshare comes with ongoing maintenance fees recurring charges that cover property upkeep, insurance, and management costs. Those fees survive any change in ownership unless you successfully terminate the contract.
When a parent passes away, any property they owned-including a timeshare-becomes part of the estate. If there’s a valid will, the executor follows the bequest; if not, the estate is distributed under local intestacy rules.
During probate, the court issues a deed legal document that transfers title from the deceased to the heir or heir’s estate. The deed for a timeshare works the same way, but the underlying contract (the timeshare agreement) may impose additional constraints.
Accepting the title means you step into the shoes of the original owner. The most common obligations are:
If you neglect these duties, the developer can file a lien, send collections notices, or even pursue legal action.
You have four realistic paths. The table below outlines the pros, cons, and typical steps for each.
Option | Key Benefits | Main Drawbacks | Typical Steps |
---|---|---|---|
Keep & Use | Guaranteed vacation slot, potential for rental income | Ongoing fees, limited flexibility | Update deed, register with resort, set up payment method |
Sell on Secondary Market | Recover part of your investment, relieve fee burden | Seller fees, market can be thin, buyer vetting required | Hire a reputable broker, sign resale agreement, transfer ownership |
Exit Program | Cancel future obligations, often lower cost than selling | May involve exit fees, not all resorts offer clean exits | Contact developer, submit written request, pay any exit charge |
Transfer to Family/Friend | Keep the asset in the family, avoid market hassle | Recipient must accept fees, possible tax consequences | Draft transfer deed, obtain resort approval, update records |
Skipping any of these steps can leave you liable for hidden costs or even legal disputes.
In NewZealand, a timeshare is considered a personal property asset. When you inherit it, the asset’s market value at the date of death becomes the “cost base” for any future capital gains tax (CGT) considerations-though NewZealand currently has no CGT, the value still matters for depreciation and insurance purposes.
If you sell the timeshare, any profit over the cost base may be subject to income‑tax rules if the sale is deemed a “business activity.” For most casual heirs, this isn’t an issue, but it’s wise to keep a record of purchase price, fees paid, and sale proceeds.
Estate‑planning wise, you can gift the timeshare to another family member. In NewZealand, gifts over the annual exemption may trigger a “gift tax” under certain circumstances, so consult a tax adviser.
Yes. The maintenance fee obligation passes with ownership unless you successfully terminate the agreement through an exit program or sell the timeshare to a new owner who assumes the fees.
Many contracts include a restriction that the developer has a right‑of‑first‑refusal. You’ll need to check the original agreement; if it exists, you must offer the timeshare to the resort before selling on the open market.
If the developer offers a formal exit program, submit a written request along with any required exit fee. Some resorts have a “cancellation window” of 30‑90days where you can back out with minimal cost.
In NewZealand there is no capital gains tax, but the market value at the date of death becomes the cost base for any future sale. If you sell shortly after inheriting, keep records to prove the cost base.
Yes. Draft a transfer deed, get the resort’s written consent, and file the new title with the land registry. The recipient will assume all future fees and contract terms.
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