Timeshare Inheritance: What Happens When You Get a Timeshare From a Loved One

If a family member dies and leaves you a timeshare, you probably have a lot of questions. Is it a gift or an asset? Do you have to keep it? What taxes are due? This guide walks you through the basics so you can make a smart decision.

How a Timeshare Becomes Part of an Estate

When someone dies, everything they owned becomes part of their estate. A timeshare is treated like any other real‑property interest – it shows up on the will or, if there is no will, it follows the rules of intestacy. The executor (or personal representative) is responsible for identifying the timeshare, notifying the resort, and making sure the ownership is transferred to the rightful heirs.

Most timeshares are held as a deeded interest, which means the deed can be transferred just like a house. Some are held as a right‑to‑use contract; in that case the contract may be assignable, but the resort can have extra rules. Check the original paperwork or call the management company to find out which type you have.

What Options Do Heirs Have?

Once the timeshare is in your name, you can usually do one of three things: keep it, sell it, or exit the contract. Keeping it might make sense if you already enjoy those weeks or if you think you can rent it out for extra cash. Remember, you’ll still owe annual maintenance fees, which can rise each year.

Selling can be tricky. The market for timeshares is small, and you’ll often get far less than the original purchase price. Working with a reputable resale broker or listing on a trusted secondary‑market site gives you the best chance of a fair sale.

Leaving the timeshare is another route. Some resorts offer a deed‑back or surrender program, sometimes for a fee. If the resort won’t take it back, you might hire a timeshare exit service, but beware of scams – always check reviews and verify any company’s credentials.

Taxes are another piece of the puzzle. In the UK, inheritance tax only applies if the total estate exceeds the nil‑rate band, and a timeshare counts as part of that total. After you inherit, any rental income you earn is subject to income tax, and you may be able to deduct the maintenance fees as an expense. If you sell, capital gains tax could apply if the sale price exceeds the market value at the time of inheritance.

Finally, don’t forget the paperwork. You’ll need the death certificate, the original timeshare deed or contract, and a copy of the will (if there is one). The resort will likely ask for a completed transfer form and proof of identity. Getting these documents organized early saves a lot of back‑and‑forth later.

Dealing with a timeshare inheritance can feel overwhelming, but breaking it down into steps makes it manageable. Figure out what type of ownership you have, decide whether you want to keep, sell, or exit, and understand the tax side. With the right info, you can turn a surprise into a sensible choice for your financial future.