Should Timeshares Be in a Trust? (w/Examples) + FAQs

Yes — in most cases, placing a timeshare in a trust is a smart estate planning move that protects your heirs from expensive, time-consuming probate proceedings. Without a trust, a deeded timeshare held in your name at death must pass through probate — and if that timeshare sits in a different state than where you live, your family faces a second legal proceeding called ancillary probate in that state. Under each state’s probate laws, real estate is governed by the state where it is physically located, not where the owner lived.

The American Resort Development Association (ARDA) reports that roughly 7.4% of Americans — about one in thirteen — own a timeshare product, and 91% of those timeshares are located within the United States. The average length of ownership is 13 years, which means many owners will eventually face the question of what happens to their timeshare when they pass away.

Here is what you will learn in this article:

• 🏠 The different types of trusts you can use for timeshares — and which one fits your situation
• ⚖️ How deeded timeshares and right-to-use timeshares are treated differently under the law
• 📋 The step-by-step process for transferring a timeshare into a trust (including fees and developer rules)
• 🚫 Common mistakes that trap families in probate court or stick heirs with unwanted maintenance fees
• 💡 Real-world scenarios showing exactly what happens when timeshares are — and are not — placed in a trust

What Is a Timeshare, and Why Does It Matter for Estate Planning?

A timeshare is a shared vacation property arrangement where multiple people own or use a property during specific time periods each year. Timeshares fall into two main categories that affect how they interact with trusts and estate planning.

A deeded timeshare gives you a fractional ownership stake in real property through a recorded deed. You own a percentage of the physical unit, and that ownership is permanent. You can sell it, rent it, or pass it to your heirs. Because a deeded timeshare is real property, it must go through probate in the state where it is located if it is not placed in a trust.

A right-to-use (RTU) timeshare is a contract that gives you the right to use a property for a set number of years — often 20 to 99 years — but you do not own any real estate. When the contract expires, you have nothing. RTU timeshares are treated as personal property, not real property, which changes how they transfer at death.

Both types of timeshares carry ongoing financial obligations. Annual maintenance fees range from $500 to over $1,000, and special assessments can be levied for natural disasters, major repairs, or upgrades. These fees do not stop when the owner dies — the estate or the heirs become responsible.

Types of Trusts for Timeshares

Not all trusts work the same way. The type of trust you choose for your timeshare depends on your goals — whether that is avoiding probate, protecting assets from creditors, or maintaining privacy.

Revocable Living Trust

A revocable living trust is the most common and recommended trust for timeshare owners. You create the trust during your lifetime, transfer the timeshare into it, and name yourself as the trustee. You keep full control of the timeshare, continue using it, and can change or cancel the trust at any time.

When you die, the timeshare passes directly to your named beneficiaries without going through probate. This is important because it avoids both the primary probate in your home state and any ancillary probate in the state where the timeshare is located. A revocable trust does not protect assets from creditors, because you still legally control the property.

Irrevocable Trust

An irrevocable trust requires you to give up ownership and control of the timeshare permanently. Once the timeshare is in the trust, you cannot take it back, modify the trust, or change its terms. The trade-off is significant asset protection.

Because the assets no longer legally belong to you, creditors generally cannot reach them. An irrevocable trust also removes the timeshare from your taxable estate. However, transferring a timeshare into an irrevocable trust may trigger federal gift tax reporting on IRS Form 709 if the value exceeds the annual gift tax exclusion ($19,000 per recipient in 2025). The transfer counts against your lifetime estate and gift tax exemption of $13.91 million.

Courts can undo transfers to irrevocable trusts if the transfer was made to defraud creditors. Timing matters — if you transfer assets right after getting sued, a court is likely to reverse it. For Medicaid planning, there is a five-year lookback period that must pass before the trust protects those assets from Medicaid estate recovery.

Land Trust

A land trust is a specialized arrangement used primarily in Illinois and a few other states. The trustee holds legal title to the property, but the beneficiary retains the right to manage, control, and receive income from it.

The main advantage of a land trust is privacy. Because the trustee’s name appears on public records instead of the beneficial owner’s name, your personal identity stays off county recorder databases. A land trust also avoids probate and simplifies the transfer of beneficial interests without recording new deeds. For timeshare owners who value anonymity — particularly real estate investors — a land trust provides protection that other trusts do not.

Trust Type Comparison

The Ancillary Probate Problem

This is the single biggest reason to place a timeshare in a trust. Ancillary probate is a secondary probate proceeding required in every state where you own real property outside your home state. Real estate must pass to beneficiaries under the laws of the state where it sits — not the state where you lived.

If you live in Ohio but own a deeded timeshare in Orlando, Florida, your family faces two separate probate cases — one in Ohio and one in Florida. That means two sets of court filings, two sets of attorney fees, and potentially months or years of delays. The cumulative costs, including attorney fees, can total thousands of dollars for each probate process.

A properly funded revocable living trust eliminates ancillary probate entirely. The trust — not you as an individual — holds title to the timeshare. Because the trust does not die, there is no need for a court proceeding to transfer ownership. The successor trustee distributes assets according to the trust’s terms.

Real-World Example: The Wisconsin Snowbird

Consider Mark, a Wisconsin resident who owns a deeded timeshare in Maui, Hawaii. Mark does not have a trust. When Mark passes away, his family must open probate in Wisconsin and file a separate ancillary probate in Hawaii through the Bureau of Conveyances. His family must hire an attorney in Hawaii, pay Hawaiian court fees, and wait for the Hawaiian probate to close before anyone can use or transfer the timeshare. Had Mark transferred the timeshare into a revocable living trust, his successor trustee could have handled the transfer in weeks — without stepping foot in a courthouse.

Deeded vs. Right-to-Use Timeshares in a Trust

The type of timeshare you own changes how you transfer it into a trust and what happens after the transfer.

Deeded Timeshares

A deeded timeshare is real property. To fund it into a trust, you need a new deed that transfers your ownership from your individual name to the name of your trust. This new deed must be recorded with the county recorder’s office in the county where the timeshare is located.

For example, if you own a deeded timeshare at a Hilton Head resort in Beaufort County, South Carolina, the new deed must indicate “Timeshare Deed” on the face of the document and meet all South Carolina recording requirements, including original signatures, two witnesses, notarization, and a tax district, map, and parcel number.

Right-to-Use Timeshares

A right-to-use timeshare is personal property — a contract, not a deed. To transfer it into a trust, you typically need to list it as part of the trust property or execute an assignment of the contractual interest to the trust. There is no deed to record with a county. However, you still need to notify the timeshare company and comply with any transfer provisions in your contract.

Some RTU contracts contain clauses that restrict or prohibit transfers. Review your contract carefully — or have an attorney review it — before assuming your RTU timeshare can be placed in a trust.

Step-by-Step: How to Transfer a Timeshare into a Trust

Transferring a timeshare into a trust is not automatic. Signing a trust document alone does not move the timeshare into the trust. You must actively “fund” the trust by transferring title. Here is how the process works for a deeded timeshare:

Step 1 — Review Your Timeshare Contract. Before doing anything, read the transfer provisions in your timeshare agreement. Look for restrictions, right-of-first-refusal clauses, and required developer approval. Some resorts require you to use their own forms or process.

Step 2 — Have a New Deed Prepared. An attorney or deed preparation company creates a new deed — typically a quitclaim deed or warranty deed — that transfers the timeshare from your individual name to the name of your trust. Document preparation fees typically range from $275 to $450 depending on the state.

Step 3 — Sign, Witness, and Notarize. The deed must be signed by the grantor (you), witnessed (in states that require it), and notarized. Each state has its own requirements for what makes a deed valid.

Step 4 — Record the Deed. The signed deed is filed with the county recorder or clerk of court in the county where the timeshare is located. Recording fees vary by county, but they typically range from $25 to $75. In Hawaii, deeds are recorded with the Bureau of Conveyances.

Step 5 — Notify the Resort or Developer. After the deed is recorded, send a copy of the recorded deed along with a copy of your trust’s abstract or certification to the timeshare resort or management company. They need this documentation to update their records, direct maintenance fee bills, and recognize the trust as the new owner.

Step 6 — Confirm the Transfer. Follow up with the resort to make sure the ownership change has been processed. Keep copies of all recorded documents and correspondence.

Developer-Specific Rules and Transfer Fees

Each major timeshare developer has its own policies for trust transfers. Failing to follow these policies can result in rejected transfers, lost usage rights, or unexpected fees.

Marriott Vacation Club

Marriott requires a re-enrollment fee of $200 per deed when ownership is transferred. Marriott also maintains a right of first refusal on resale transfers, where Marriott can match any purchase offer to keep the buyer from getting the timeshare through resale. For legacy week transfers, there is a $25 fee plus a $95 right-of-first-refusal processing fee. Processing typically takes one to three weeks after the recorded deed reaches Marriott.

Hilton Grand Vacations (HGV)

HGV charges an ownership change fee of $425 plus a membership activation fee of $609 per timeshare for resale transfers. However, for trust transfers where you handle the deed work yourself, HGV may not charge a fee to update their records. One HGV owner reported that after their lawyer prepared and recorded the deeds, HGV updated the ownership to reflect “trustee” status within a couple of weeks at no cost. Quotes from HGV’s Title Services department for full-service transfers have ranged from $500 for Nevada properties to $1,400 for DC properties.

Wyndham Vacation Resorts

Wyndham’s structure is different. Many Wyndham owners hold their interests through the Fairshare Vacation Owners Association (FVOA), a trust controlled by Wyndham. In a 2020 class action lawsuit — Carolyn Nolen, et al. v. Wyndham Vacation Resorts Inc. — owners alleged they were forced to assign 100% of their timeshare interest to Club Wyndham Plus under the Fairshare Trust, and that Wyndham, not the owners, was the real beneficiary. This case highlights the importance of understanding exactly what entity holds your interest before attempting a trust transfer.

General Developer Transfer Fees

State-Specific Nuances

Timeshare law is not uniform across states. Where your timeshare is located determines the legal requirements for transferring it into a trust.

Florida

Florida is the largest timeshare market in the country. Under Florida Statute § 721.17, any transfer of a timeshare interest must be recorded in the public records of the county where the property is located. The instrument must be executed by both the transferor and transferee and include specific language protecting other purchasers in the timeshare plan. Florida’s 10-day cancellation period applies to initial purchases, not to trust transfers.

Hawaii

Hawaii timeshare transfers must be recorded with the Bureau of Conveyances. Under Hawaii Revised Statutes § 501-131, when registered land is transferred in trust, the certificate will note “in trust” with a reference to the trust instrument. The particulars of the trust are not entered on the title certificate, providing a degree of privacy. Experienced firms in Hawaii stress that using a licensed Hawaii attorney is essential because each of the 80+ resorts on the islands has unique requirements.

South Carolina

South Carolina’s Beaufort County — home to Hilton Head timeshares — requires that deeds transferring timeshares must indicate “Timeshare Deed” on the face of the document. Errors in documentation can cause the recording office to reject the deed. HGV’s own title services reported they are not authorized to handle transfers in South Carolina, so owners must use independent attorneys or transfer services.

California

California allows heirs to disclaim timeshare inheritances under Probate Code Section 275. For trust transfers, California does not have unique timeshare-specific statutes, but standard real property recording rules apply. Proposition 19 may affect property tax reassessment for transfers of real property to children, though timeshares are rarely reassessed at values that create significant tax consequences.

The Perpetuity Clause Problem

Many timeshare contracts include a perpetuity clause that binds ownership to the original buyer’s lifetime — and potentially beyond. These clauses state that the timeshare interest is valid for the owner’s entire lifespan, and upon death, the obligation transfers to the heirs.

Here is the critical nuance for trusts: a trust cannot die. If your revocable trust owns the timeshare, the perpetuity clause may never trigger a termination event. The timeshare company can argue that because the trust is a continuing legal entity, the contract remains in full force — including all maintenance fee obligations — indefinitely.

This can be either a benefit or a burden. If your family loves the timeshare and plans to use it for generations, the trust provides a seamless vehicle for that. If nobody wants the timeshare, the trust could lock your beneficiaries into obligations they cannot escape through the death-based termination provisions that apply to individual owners.

Strategy: Before placing a timeshare in a trust, review the contract language around termination. If the contract terminates upon the owner’s death, and your heirs do not want the timeshare, it may be better to leave it out of the trust so the contract ends at your passing. The timeshare company would then need to initiate probate to seek payment — and the cost of doing so often outweighs the benefit, leading many companies to simply reclaim the unit.

Real-World Scenarios

Scenario 1: The Family That Plans Ahead

Situation: Megan and Dan own a deeded beach timeshare with three weeks — a 3/52 fractional interest. They have a revocable living trust and want to pass the timeshare to their children.

Megan and Dan avoided probate, avoided transfer fees, and created a built-in enforcement mechanism for maintenance fees.

Scenario 2: The Inherited Burden

Situation: Deborah and Carl’s parents died owning a timeshare in Orlando with $900 in annual maintenance fees per week. Neither Deborah nor Carl wants the timeshare. Their parents had no trust.

Had their parents placed the timeshare in a trust with a sell-or-surrender instruction, the successor trustee could have handled the disposition without probate.

Scenario 3: The Strategic Co-Trustee Approach

Situation: James and Barbara Ruh created a trust to hold their timeshare interests. They named their daughters as co-trustees.

This approach gives heirs choice without forcing unwanted obligations onto them.

Mistakes to Avoid

Mistake 1: Creating a Trust but Not Funding It. Signing a trust document does not transfer your timeshare. You must execute a new deed and record it with the appropriate county. Without this step, the timeshare stays in your name and goes through probate.

Mistake 2: Ignoring the Developer’s Transfer Process. Recording a deed is not enough. You must notify the resort or management company and provide the proper documentation. If the resort does not recognize the trust as the owner, billing issues, reservation access problems, and ownership disputes can arise.

Mistake 3: Not Reviewing the Timeshare Contract First. Some contracts include right-of-first-refusal clauses, anti-transfer provisions, or fees that apply to any ownership change. Attempting a trust transfer without understanding these terms can result in a rejected transfer or unexpected costs.

Mistake 4: Using the Timeshare Before Disclaiming. If you inherit a timeshare and use it even once, you lose the right to disclaim it. You are then stuck with the ownership and all its financial obligations.

Mistake 5: Assuming a Trust Means Your Heirs Are Off the Hook. If the trust owns the timeshare, your beneficiaries inherit the maintenance fee obligations along with the usage rights. The trust does not eliminate these costs — it transfers them.

Mistake 6: Forgetting About the 9-Month Disclaimer Deadline. Under federal law and most state laws, heirs must file a Disclaimer of Interest within 9 months of the owner’s death. Miss that window, and you become the legal owner.

Do’s and Don’ts

Do’s

• ✅ Do talk to your heirs before placing a timeshare in a trust. Find out if they actually want it. If nobody does, a trust may create obligations that are hard to escape.
• ✅ Do hire an estate planning attorney who has experience with timeshares. The intersection of real property law, contract law, and trust law requires specialized knowledge.
• ✅ Do include a Timeshare Trust provision that allocates maintenance fees proportionately among beneficiaries and penalizes non-payment with loss of usage.
• ✅ Do set aside funds in the trust to cover the maintenance fees during the transition period after your death. This prevents billing gaps that could trigger collection actions.
• ✅ Do keep all recorded deeds, trust documents, and developer correspondence in one accessible location.

Don’ts

• ❌ Don’t assume your timeshare automatically goes into your trust just because you signed a trust agreement. You must execute and record a new deed.
• ❌ Don’t place a timeshare in an irrevocable trust unless you are prepared to permanently give up control and potentially trigger gift tax reporting.
• ❌ Don’t forget to check if your state recognizes transfer-on-death deeds as an alternative to a trust.
• ❌ Don’t use a trust to dodge existing creditors. Courts will reverse fraudulent transfers and may impose penalties.
• ❌ Don’t ignore the timeshare if it is located in another country. International timeshares have separate jurisdictional issues that require attorneys in that country.

Pros and Cons of Putting a Timeshare in a Trust

Pros

• Avoids probate and ancillary probate. Your heirs skip court proceedings in every state where you own timeshare property.
• Seamless succession. The trust provides clear instructions for who inherits, who manages, and how costs are split.
• Protection during incapacity. If you become incapacitated, your successor trustee can manage the timeshare, pay fees, and make reservations on your behalf.
• Prevents forced co-ownership disputes. Without a trust, multiple heirs may inherit equal shares, leading to disagreements about usage, fees, and selling.
• Can prevent sale without majority consent. A well-drafted trust can require a majority of beneficiaries to agree before the timeshare is sold.

Cons

• Trust cannot die, so perpetuity clauses stay active. The timeshare contract may never terminate if the trust is the owner.
• Beneficiaries inherit maintenance fee obligations. The trust does not erase the annual financial burden.
• Transfer costs. Between deed preparation, recording fees, and developer transfer fees, the total cost can range from $300 to $1,500+ depending on the state and developer.
• Complexity for international timeshares. Timeshares outside the U.S. may require separate legal proceedings in that country.
• Difficulty exiting. If the trust owns the timeshare and no one wants it, the trustee must navigate the same limited resale market that all timeshare sellers face.

The Disclaimer of Interest: Your Heirs’ Escape Hatch

Even with the best planning, circumstances change. Your heirs might not want the timeshare when the time comes. The law provides an exit: the Disclaimer of Interest.

A Disclaimer of Interest is a legal document filed with the probate court stating that the heir refuses to accept the timeshare inheritance. Under federal tax rules and most state laws, this must be filed within 9 months of the owner’s death. In California, Probate Code Section 275 permits beneficiaries to disclaim any interest in whole or in part.

The critical rule: if the heir uses the timeshare even once after the owner’s death, they lose the right to disclaim. Even one night’s stay can be interpreted as acceptance of the inheritance.

Once a disclaimer is filed, the timeshare passes to the next person in line. If no one accepts it, the timeshare typically reverts to the resort or management company, which may foreclose on it to recover unpaid maintenance fees.

FAQs

Can I put a timeshare in a revocable living trust?

Yes. You can transfer a deeded timeshare into a revocable living trust by executing a new deed naming the trust as owner and recording it with the county where the timeshare is located.

Does putting a timeshare in a trust avoid probate?

Yes. A properly funded trust bypasses probate — including ancillary probate in other states — because the trust, not the individual, owns the property at the time of death.

Can my heirs refuse a timeshare that is in my trust?

Yes. Beneficiaries can file a Disclaimer of Interest to refuse a timeshare inheritance, but they must do so within 9 months and must not have used the timeshare after the owner’s death.

Does a trust protect my timeshare from creditors?

No, not with a revocable trust. Only an irrevocable trust provides creditor protection because you give up ownership and control of the assets.

Will the timeshare company charge me to transfer to a trust?

It depends. Some developers charge nothing if you handle the deed work; others charge fees ranging from $200 to over $1,400 depending on the property location and developer.

Can I put a right-to-use timeshare in a trust?

Yes, but the process is different. RTU timeshares are personal property, not real estate, so you list the contractual interest in the trust schedule rather than recording a new deed.

What happens to maintenance fees when a timeshare is in a trust?

They continue. The trust becomes responsible for maintenance fees, and beneficiaries inherit that obligation along with the usage rights. Unpaid fees can lead to foreclosure.

Should I put an unwanted timeshare in a trust?

No. If nobody in your family wants the timeshare, placing it in a trust may extend the contract beyond your death because a trust cannot die, preventing death-based termination clauses from activating.

Is a land trust good for a timeshare?

Yes, for privacy. A land trust keeps your personal identity off public records and avoids probate, but it is primarily recognized in Illinois and a limited number of other states.

Do I need an attorney to transfer a timeshare into a trust?

No, but it is strongly recommended. Deed preparation, recording requirements, and resort-specific policies vary widely, and errors can result in rejected filings, unexpected fees, or an invalid transfer.