What Happens to a Timeshare When the Owner Dies?
May, 17 2025
If you thought timeshares just disappear when the owner passes away, think again. Timeshares don’t work like regular real estate—they come with their own set of rules, contracts, and sometimes, headaches. Most people don’t realize that you can’t just walk away from the fees and bills, even when someone dies.
Here’s the deal: when a timeshare owner dies, the right to use the property doesn’t vanish. Instead, that right usually travels right into the owner’s estate. So the family or whoever is named in the will suddenly finds themselves with a vacation property they might not even want, plus those monthly maintenance payments.
Skipping the paperwork? Not an option. The resort or timeshare company will hunt down the estate for unpaid bills. It doesn’t matter if the timeshare sits empty; someone is on the hook. That’s why knowing where you stand is so important—before anything unexpected happens.
- Timeshare Basics: What You Actually Own
- First Step: What Happens to the Timeshare Contract
- Heirs and Responsibilities: Who Gets the Bill?
- Navigating Probate and Legal Hurdles
- Rejecting or Accepting the Inheritance
- Tips for Planning Ahead with Timeshares
Timeshare Basics: What You Actually Own
Before diving into what happens when the owner dies, let’s get clear about what a timeshare really is. Most timeshare agreements don’t mean you own physical property like a condo or a house. Instead, you’ve usually got the right to use a vacation spot for a set period each year—think one specific week, sometimes the same week every year, or sometimes ‘floating’ weeks where you can pick a slot in a season.
Here’s what stands out: even though you get a deed or a contract, you don’t own the property itself. You own the ability to use it. There are two main types:
- Deeded timeshare: Similar to real estate—your name’s on the deed. You can inherit it, sell it, or give it away. But just like with a house, you’re responsible for bills, taxes, and yearly maintenance, no matter what.
- Non-deeded (sometimes called a "right to use"): You get a contract giving you vacation rights for a certain number of years, but you don’t technically own anything. When the contract’s up, your rights vanish.
Something that trips up a lot of people: even if you’re not using the timeshare, those timeshare inheritance responsibilities don’t go away. The original contract almost always says annual maintenance fees follow the ownership. Most of the time, timeshares can be passed to heirs just like any other asset, but those fees follow right behind.
There’s also usually a clause in the contract about ownership transfer when someone dies. Resorts will want proof before letting anyone else use the timeshare. So, if you’re in the will or listed as a beneficiary, expect to deal with paperwork and probably talk to the resort’s legal team. The key takeaway: you’re not getting beachfront property; you’re getting a slice of vacation rights, plus a slice of all the obligations that go with it.
First Step: What Happens to the Timeshare Contract
When a timeshare owner dies, the contract doesn’t just expire. It actually outlives the person. That’s because most timeshares are tied up in a legal contract that spells out all kinds of rights and obligations. The timeshare agreement gets passed along with everything else in the owner’s estate, just like a house or a car would—but with a twist.
If there’s a will, things are a bit more direct. The timeshare inheritance usually goes to whoever’s named as a beneficiary. If there’s no will, state inheritance laws take over. Either way, the contract keeps going, and someone will be responsible for it soon enough.
Here’s how the contract transition usually goes:
- The estate’s executor notifies the resort company of the owner’s death.
- The resort requests proof—usually a death certificate and sometimes a copy of the will or probate docs.
- The company then contacts the next eligible person listed in the estate or will.
- If there’s no named heir, the timeshare can go through probate just like any other asset.
Most timeshare companies follow a set process when they get news an owner has died. You can see an example breakdown below.
| Step | What Happens |
|---|---|
| Notification | Executor alerts the timeshare company |
| Documentation | Provide death certificate and legal papers |
| Assignment | Company identifies new responsible party (heir or estate) |
| Transfer | Heir accepts or rejects ownership (if allowed by contract/state law) |
| Resolution | Ongoing fees/bills shift to the estate or heir |
One thing a lot of folks miss: timeshare contracts almost always have language that says surviving heirs or the estate stay on the hook for payments, even if the timeshare isn’t in use. If nobody wants the timeshare, skipping payments can damage the estate or even the heirs’ credit. Ignoring the contract never works out well.
Heirs and Responsibilities: Who Gets the Bill?
If you’re wondering who deals with the money side of a timeshare after the owner dies, it’s usually the folks who inherit the property. Here’s the cold truth: timeshares don’t just go away—they get passed on, along with all the fees. If someone is named in the will or is next in line by state law, that person usually becomes the new owner by default. This means the bills, maintenance fees, and possible loan payments tag along, too.
Timeshare companies are quick to notify heirs or the person handling the estate (called the executor) about outstanding bills. It doesn’t matter if the heirs want the timeshare or not—if it lands in the estate, the estate has to deal with it. And those annual or monthly fees don’t pause for anyone, even during the legal stuff. The average annual maintenance fee in the US was about $1,120 in 2024, according to the American Resort Development Association. That adds up fast if you hold onto the property for a few years.
| Fee Type | Average Cost (2024) | Who Pays? |
|---|---|---|
| Maintenance Fee | $1,120/year | Heirs or Estate |
| Special Assessment | $500 - $2,000 (varies) | Heirs or Estate |
| Transfer Fee | $250 - $500 (one-time) | Heirs or Estate |
Here’s what usually happens when a timeshare owner dies:
- The executor figures out who inherits the timeshare inheritance—either by will or by state law.
- The resort or timeshare company reaches out for payment on any outstanding fees.
- The estate keeps paying fees and dues until ownership is officially transferred or given up.
If you’re listed in the will but don’t want the timeshare, you might be able to refuse it. But don’t just ignore the bills—they can pile up and cause bigger headaches later. Some families try to return the timeshare to the resort or sell it, but timeshares can be tough to unload. Before you even think about it, talk to a real estate lawyer or estate expert who knows these rules. That way you know what’s coming and won’t get stuck by surprise fees or legal trouble.
Navigating Probate and Legal Hurdles
Dealing with a timeshare after an owner’s death usually means tangled paperwork and the joys of probate court. Here’s how it typically goes down: timeshares, even though they might feel like vacation real estate, usually fall under the same rules as other assets in someone’s estate. That means before anyone can take it over, sell it, or say “no thanks,” it has to go through probate—the official court process that sorts out the dead person’s stuff.
Probate can be slow. For timeshares, it might drag on for months while the court figures out who the legal heirs are. In most states, even if the property is out-of-state (like that sunny spot in Florida), you’ll have to do probate where the timeshare is located. This is called “ancillary probate.” Double the headache, double the lawyer fees. In a 2023 survey by the American Bar Association, probate took an average of 9-18 months and could cost anywhere from $2,500 to over $15,000—including court fees, attorney charges, and appraisals.
If there’s a will, the simple part is it usually spells out who gets the timeshare inheritance. If there’s no will, the state decides based on their own rules. Either way, bills and maintenance fees keep piling up until everything’s sorted. The timeshare company will keep sending those invoices. If nobody pays, expect late fees and possible legal threats against the estate. Some families end up spending more on legal costs than the actual value of the timeshare.
| Step | What Happens |
|---|---|
| 1. Notifying the Resort | Send a copy of the death certificate and let the company know ASAP. |
| 2. Inventory and Valuation | Court will want to know how much the timeshare is worth, even if it’s just the right to use it. |
| 3. Court Probate Proceedings | Ownership is legally transferred to heirs or handled per state law. |
| 4. Paying Fees | Estate has to cover any overdue maintenance, transfer, or legal fees. |
| 5. Final Transfer | Heirs decide if they want to keep, sell, or reject the timeshare, based on state laws. |
If you’re dealing with this mess, get a probate lawyer who actually handles timeshares. Many make rookie mistakes with these contracts because they’re different from regular real estate. Also, think twice before paying transfer fees or resort costs “just to get it over with.” Sometimes, you can negotiate with the resort, especially if the unit is paid off and not in some hot vacation spot.
Rejecting or Accepting the Inheritance
This is where a lot of folks get tripped up. If you’re named as the heir to a timeshare—either in the will or by state law—don’t assume you’re stuck paying that annual fee just because your name came up. You actually have a choice, but you’ve got to act fast and do it right.
Here’s the catch: Inheriting a timeshare isn’t always a great deal. Most contracts mean you’re taking on whatever bills, fees, and even back payments have piled up. In 2023, numbers showed that nearly half of all U.S. timeshares came with yearly fees over $1,000. That’s not pocket change, especially if you never plan to visit.
So, how do you handle it? You’ll usually go through the probate process. The estate’s executor (this might be you) gets to decide if it makes sense to take the timeshare, or reject it. Rejecting it is called “disclaiming” or “renouncing” the inheritance. The rules for this aren’t the same everywhere, but here’s a general idea:
- You have to officially renounce the timeshare—just saying "no thanks" over the phone won’t work. It usually means filing written paperwork with the court.
- The disclaimer has to come before you use the timeshare or accept any benefit. Even one visit could count as you accepting it.
- There’s a deadline. In many states, you’ve got just nine months after the death to disclaim property, but check local rules to be sure.
If nobody in the family wants the timeshare and it gets rejected, the property usually goes back to the resort, or sometimes to another named backup heir. The bills don’t vanish—the timeshare company will still come after the estate for what’s due.
| Yearly Timeshare Maintenance Fees (U.S. Average) | Percentage of Timeshares |
|---|---|
| Over $1,000 | 48% |
| $500 - $1,000 | 36% |
| Under $500 | 16% |
If you actually want the timeshare and it has some value to you, accepting it is simple. You just complete the paperwork and the property changes hands. But make sure you do the math—don’t get surprised by surprise assessments or hidden repair fees down the road.
It comes down to this: Don’t just ignore the process. Whether you want the timeshare or not, handle it clearly so you don’t end up with bills or headaches years later. If in doubt, talk to a probate attorney who’s seen these contracts before. It’s not just about the vacation—it’s protecting yourself from unwanted timeshare inheritance drama.
Tips for Planning Ahead with Timeshares
If you or your loved ones have a timeshare, planning ahead is key. The last thing anyone wants is to pass on a financial headache instead of a vacation perk. Over 70% of timeshare owners regret their purchase at some point, and unexpected inheritance only adds to the stress. It makes sense to get your ducks in a row sooner rather than later.
Here’s what you should definitely do if you want to avoid surprises down the line:
- Review your ownership contract: Every timeshare deal spells out what happens after the owner dies. Find out if your ownership is deeded (real estate ownership) or ‘right-to-use’ (just a contract for years). Deeded timeshares usually go through probate, while right-to-use might be easier to drop or transfer.
- Talk about it with your family: Don’t let your relatives get blindsided by surprise bills. Let them know about the timeshare. Be honest if you think nobody wants to inherit it.
- Put it in your will or trust: You can spell out who gets the timeshare, or even better, who doesn’t. Some savvy planners create trusts to move the timeshare out of their estate, making it easier to reject or transfer when the time comes.
- Ask the timeshare company about surrender options: Many resorts now offer exit programs if you want out. Some let you give it back—no strings attached—if you qualify. Get that in writing before banking on this escape route.
- Check if there are unpaid fees or special assessments: These stick with the property, and your heirs might inherit back payments. Make sure you’re paid up, or it could get messy fast.
- Stay on top of annual statements: Maintenance fees jump about 3–5% per year on average. Knowing the current and projected costs helps everyone make smart decisions.
Here’s a simple table showing why proactive steps matter so much:
| Factor | No Planning | Planned Ahead |
|---|---|---|
| Inheritance Process | Messy probate, potential court fees | Clear next steps, fewer surprises |
| Heirs’ Costs | May inherit unpaid bills, rising maintenance | Chance to reject or transfer quickly |
| Control | Timeshare company could chase heirs | Heirs know what’s coming and can act fast |
Bottom line? Planning ahead with a timeshare inheritance can save your family a real hassle—and maybe some money, too. Don’t wait for things to go sideways before you take action.