What Happens to a Timeshare When You Die? (w/Examples) + FAQs

When a timeshare owner dies, the timeshare becomes part of their estate — just like a house, a bank account, or any other asset. This means the timeshare, along with all of its financial obligations, passes to heirs through probate, a will, a trust, or state intestacy laws depending on how the ownership was structured.

Here is the problem most families run into: under Section 2518 of the Internal Revenue Code and state-level probate statutes, timeshare interests are treated as real property interests that must go through a legal transfer process before any heir can accept or reject them. Maintenance fees, special assessments, and taxes keep piling up during that process. According to the American Resort Development Association (ARDA), average timeshare maintenance fees hit $1,480 per year in 2024 — a staggering 17.5% increase over the prior year. With roughly 9.6 million U.S. households owning at least one timeshare, millions of families will eventually face this exact situation.

Here is what you will learn in this article:

• 🏠 The different types of timeshare ownership and how each one is treated after the owner’s death
• ⚖️ How probate, wills, trusts, and intestacy laws determine who inherits a timeshare — and what obligations come with it
• 🚫 How to legally refuse a timeshare inheritance using a Disclaimer of Interest under federal and state law
• 💰 The ongoing costs that accumulate during probate and the specific mistakes that trap heirs into paying them
• 🔑 Exit strategies available to heirs, including deed-back programs, resale, and foreclosure — and how to avoid timeshare exit scams

Types of Timeshare Ownership and Why They Matter After Death

Not all timeshares are created equal. The type of timeshare you own determines what happens to it when you die. There are three primary structures, and each one follows a different legal path through the inheritance process.

Deeded Timeshares (Fee Simple Ownership)

A deeded timeshare gives you an actual real property interest — meaning you hold a deed to a fractional share of a specific resort unit. This is the most common type of timeshare in the United States. You can sell it, rent it out, or pass it down to your heirs just like a house.

When the owner of a deeded timeshare dies, the property must go through probate unless it has been placed in a trust or is held in joint tenancy with rights of survivorship. Deeded timeshares carry perpetual ownership, which means the maintenance fees and special assessments never stop — even after death. The estate is responsible for those payments until the timeshare is transferred, disclaimed, or foreclosed.

Right-to-Use (RTU) / Leasehold Timeshares

A right-to-use timeshare does not give you ownership of any real property. Instead, you are purchasing the right to use a vacation property for a set number of years — often 20 to 99 years. When that term expires, all rights revert to the resort developer. This is more like a long-term lease than a property deed.

When an RTU timeshare owner dies, what happens depends on the contract. Some RTU agreements terminate upon the owner’s death. Others allow the remaining term to pass to heirs through probate or through the estate. Because RTU timeshares are governed primarily by contract law rather than property law, the fine print in the original agreement controls whether — and how — the interest transfers. Heirs should review the contract with an attorney before assuming they have inherited anything.

Points-Based Timeshares

Points-based timeshares are the newest model. Instead of owning a specific unit or week, you purchase a block of “points” that you can use to book stays across a network of resorts. Major brands like Hilton Grand Vacations, Wyndham, and Marriott Vacation Club use this system.

Points-based timeshares can be either deeded or contractual. A deeded points-based timeshare (like those sold by Disney Vacation Club or Hilton) gives you a real property interest tied to a specific “home resort,” and those points can be inherited. A purely contractual points membership may or may not transfer to heirs depending on the terms of the agreement. The distinction matters because a deeded interest requires probate (unless held in trust), while a contractual interest follows whatever the contract says.

How a Timeshare Passes After Death: Wills, Trusts, and Intestacy

The legal path a timeshare takes after the owner dies depends on how the owner planned — or failed to plan — their estate. There are three main scenarios.

Scenario 1: The Owner Had a Will

If the timeshare owner left a valid will naming a beneficiary for the timeshare, the property passes to that person through probate. The executor of the estate handles the legal transfer through the probate court. Even though the will says who gets the timeshare, the beneficiary does not legally own it until probate is complete.

During probate, the beneficiary cannot use the timeshare. However, all maintenance fees, property taxes, and special assessments must still be paid — by the executor, using estate funds. Probate can take anywhere from several months to over a year depending on the state, the complexity of the estate, and whether anyone contests the will.

Scenario 2: The Owner Had a Revocable Living Trust

A revocable living trust is the most effective way to transfer a timeshare after death without going through probate. When the timeshare is titled in the name of the trust, the trust becomes the legal owner. Upon the owner’s death, the successor trustee follows the trust’s instructions and transfers the timeshare to the named beneficiary — no court involvement required.

This approach avoids both primary probate and ancillary probate. It is especially valuable when the timeshare is located in a different state than the owner’s residence, because it eliminates the need to hire attorneys in multiple states. To use this method, the owner must transfer the deed of the timeshare into the trust while they are still alive. Many timeshare owners forget this step, which defeats the entire purpose.

For deeded timeshares, this means preparing a new deed that transfers the fractional interest from the owner’s name to the name of the trust. For non-deeded or points-based timeshares, the owner may need to contact the timeshare company and complete an assignment or transfer form to move the membership into the trust.

Scenario 3: The Owner Died Without a Will (Intestate Succession)

When a timeshare owner dies with no will and no trust, the timeshare passes to heirs according to state intestacy laws. These laws follow a predetermined order of priority — typically the surviving spouse first, then children, then parents, then siblings, and so on.

Intestacy creates the most complicated and expensive outcome. The probate court must identify the legal heirs, validate their claims, and oversee the distribution. If multiple heirs are entitled to the timeshare, they may end up as co-owners — each responsible for a share of the maintenance fees. If none of them want the timeshare, each heir must file their own Disclaimer of Interest.

Consider this real-world example: Mark, a Florida resident, owns a deeded timeshare at a resort in Orlando. He dies without a will. Under Florida’s intestacy laws, his wife inherits the timeshare. But if Mark has children from a previous marriage, Florida law gives the wife only a half-interest, with the other half going to those children. Now the wife and stepchildren are co-owners of a timeshare none of them may want — and all of them are on the hook for maintenance fees until the probate court sorts it out.

The Ancillary Probate Problem

One of the biggest hidden costs of inheriting a timeshare is ancillary probate. This is a second probate proceeding required when the deceased owned real property in a state different from where they lived.

Real estate must always be probated in the state where it is located. So if a Wisconsin resident dies owning a deeded timeshare in Nevada, the family faces two probates: a primary probate in Wisconsin for all other assets, and an ancillary probate in Nevada for the timeshare. In Nevada, timeshares are classified as real estate — even if the deed describes the interest as “300,000 Wyndham Vacation points.”

Ancillary probate means hiring an attorney in the second state, paying additional court fees, and waiting additional months for the process to conclude. Legal fees for ancillary probate alone can reach $1,500 or more. And during that entire period, the estate must keep paying the timeshare’s maintenance fees, taxes, and any special assessments that come due.

The simplest way to avoid ancillary probate is to transfer the timeshare into a revocable living trust or to hold it in joint tenancy with rights of survivorship. Both methods allow the property to transfer outside of the probate system entirely.

Joint Tenancy and Survivorship Rights

Many couples hold their timeshare in joint tenancy with rights of survivorship (JTWROS). Under this arrangement, when one owner dies, the surviving owner automatically inherits the deceased owner’s share — no probate required. In California, for example, the surviving joint tenant records an affidavit of death of joint tenant to remove the deceased owner from the title.

However, there are important cautions. Some states, including Florida, require that the deed explicitly state that the owners hold the property with survivorship rights. If the deed simply says “joint tenants” without the survivorship language, the deceased owner’s share may need to go through probate to their heirs anyway.

Also, holding a timeshare in joint tenancy with a non-spouse (like an adult child) can have unintended consequences. Adding your child to the deed means they now have an ownership interest in the timeshare. This can create gift tax implications, expose the timeshare to the child’s creditors, and may complicate their eligibility for financial aid or government benefits.

The Perpetuity Clause: Why Timeshares Follow You to the Grave

Many timeshare contracts include what is known as a perpetuity clause. This is a provision that makes the timeshare obligation last forever — binding not just the original buyer, but their heirs, successors, and assigns in perpetuity.

The perpetuity clause exists because timeshare companies need a continuous stream of maintenance fee revenue. If the contract allowed obligations to die with the owner, the resort would lose income every time an owner passed away. Instead, the clause ensures that someone — whether an heir, the estate, or a successor — remains responsible for those fees indefinitely.

This is why a timeshare can feel like a financial burden that follows families across generations. A grandparent buys a timeshare in 1995. They pass it to their daughter. Their daughter passes it to her children. Each generation inherits not just the right to vacation but also the obligation to pay fees that increase every single year.

The good news is that the perpetuity clause does not mean heirs are trapped. Federal and state laws give heirs the right to disclaim the inheritance — but only if they follow the proper process and meet strict deadlines.

How to Legally Refuse a Timeshare Inheritance

No one can force you to inherit a timeshare. Under IRC § 2518, federal law allows any beneficiary to make a “qualified disclaimer” — an irrevocable, written refusal to accept an interest in property. When you disclaim a timeshare, the law treats it as though you never received it. The timeshare then passes to the next person in line to inherit.

Requirements for a Valid Disclaimer

To be legally effective under federal tax law and most state statutes, a disclaimer must meet all of the following conditions:

1. It must be in writing. The disclaimer must identify the timeshare interest being refused and be signed by the disclaimant or their legal representative.
2. It must be filed within nine months of the date of the owner’s death. If the disclaimant is a minor, the nine-month clock starts when they turn 21.
3. The disclaimant must not have accepted any benefit from the timeshare. You cannot vacation at the timeshare, collect rent from it, or receive any compensation from it before disclaiming. Even using it once “just to check it out” could be enough to bar your disclaimer.
4. The disclaimant cannot direct where the timeshare goes. Once you disclaim, the interest passes according to the will, trust, or intestacy laws — not to the person of your choosing.
5. It must be irrevocable. Once filed, a disclaimer cannot be undone.

State-Specific Variations

While the federal requirements apply across the board, individual states have their own disclaimer statutes. Florida Statute § 739.104 allows a person to disclaim any interest in property, in whole or in part, conditionally or unconditionally — even if the creating instrument imposes a restriction on the right to disclaim. California’s Probate Code and New York’s Chapter 17-B have their own procedural requirements. Where the deceased lived at the time of death usually determines which state’s laws apply to the disclaimer.

Steps to Refuse an Inherited Timeshare

• Notify the executor. Let the estate’s personal representative know you are declining the timeshare.
• File the Disclaimer of Interest. Submit a properly completed written disclaimer to the probate court within the nine-month deadline.
• Have the executor send the death certificate to the timeshare company. This is critical to stop the resort from demanding maintenance fees from you personally.
• Notify any lender. If there is a mortgage on the timeshare, the executor should send the death certificate to the lender to stop foreclosure proceedings against the estate.
• Inform other potential heirs. When you disclaim, the timeshare goes to the next heir in line. If that person also does not want it, they must file their own separate disclaimer.

What Happens to Maintenance Fees After the Owner Dies?

Maintenance fees do not stop when the owner dies. The timeshare company will continue billing for annual maintenance fees, special assessments, property taxes, and any other charges baked into the contract. These fees become the responsibility of the estate — not the heirs personally — unless an heir has already accepted the inheritance or used the property.

If the estate fails to pay these fees during probate, the timeshare company may take several actions. It can charge late fees and interest, send the account to collections, place a lien on the timeshare, and ultimately begin foreclosure proceedings. For living owners, this damages credit scores. For a deceased owner’s estate, it reduces the assets available to other beneficiaries.

Consider this scenario: Linda dies in January, owning a deeded timeshare in Hilton Head, South Carolina. Her estate enters probate. The timeshare’s annual maintenance fee of $1,800 comes due in March. The special assessment of $600 arrives in June. By the time probate closes in October, the estate has accumulated $2,400 in timeshare costs — money that comes out of the inheritance Linda intended for her grandchildren.

According to the ARDA 2025 industry report, nearly half (49%) of timeshare resorts planned to raise their maintenance fees by 10% or more in 2025. The longer a timeshare sits in probate, the more expensive it gets for the estate.

Exit Strategies for Heirs Who Inherit a Timeshare

If you have already inherited a timeshare (or the disclaimer deadline has passed), you still have options for getting out.

Deed-Back Programs

Many major resort developers offer deed-back or surrender programs that allow owners to return their timeshare to the resort. Companies that offer these include Wyndham Destinations (through their “Ovation” program), Marriott Vacation Club, Holiday Inn Club Vacations (through “Horizons”), Hyatt Vacation Club, and Westgate Resorts (through “The Westgate Legacy Program”).

The catch: most deed-back programs require that your account is in good standing — meaning all maintenance fees, loans, and assessments must be current. Some programs are limited to owners experiencing financial hardship or major life events (including the death of a spouse). You will not receive any payment for the timeshare; the resort is simply releasing you from your contract.

Resale

You can attempt to sell the timeshare on the secondary market, but expectations should be realistic. The resale market for timeshares is notoriously weak. Properties that were purchased for $20,000 to $40,000 often sell for pennies on the dollar — or literally $1. A licensed real estate broker who specializes in timeshare resales can list the property, but the process is slow and uncertain.

Foreclosure

If the estate simply stops paying maintenance fees, the timeshare association can place a lien on the property and foreclose. There are two types: judicial foreclosure (which requires a court order) and non-judicial foreclosure (which allows the resort to sell the property through a trustee’s sale). In Arizona, for example, if an owner is delinquent for one year, the association can hold a non-judicial trustee’s sale.

Foreclosure ends the obligation, but it can damage the estate’s credit profile. If there is a loan balance remaining after foreclosure, the forgiven debt may be treated as taxable income under IRS rules. Heirs should weigh these consequences carefully.

Mistakes to Avoid

Inheriting a timeshare creates a minefield of potential errors. Here are the most common mistakes and their consequences.

Using the timeshare before deciding whether to disclaim. Even a single vacation stay or rental payment can be interpreted as “accepting” the inheritance. Once you accept, you lose the right to disclaim and become personally responsible for all future obligations.

Missing the nine-month disclaimer deadline. The federal deadline under IRC § 2518 is strict. If you miss it, you are treated as having accepted the inheritance by default. There are no extensions and no exceptions for good faith delays.

Assuming a will avoids probate. A will does not avoid probate. It only tells the probate court how to distribute the assets. The timeshare still goes through the full probate process unless the owner placed it in a trust or held it in joint tenancy with survivorship rights.

Trying to quitclaim the timeshare before probate is complete. Some timeshare companies suggest that heirs sign a quitclaim deed to return the property. But you cannot legally transfer property you do not yet own. Until probate is complete and the court transfers title to you, you have no authority to deed the timeshare to anyone.

Hiring a timeshare exit company without due diligence. The FTC has warned consumers about timeshare exit scams. Fraudulent exit companies charge $3,000 to $10,000 or more in upfront fees, promise guaranteed cancellations, and then do nothing — or simply contact the resort on your behalf, which is something you can do for free. In 2021, the Washington State Attorney General secured a $2.61 million settlement against a timeshare exit company that collected fees without delivering results. Always contact the resort directly first, as many offer free or low-cost exit programs.

Ignoring the timeshare and hoping it goes away. If no one claims the timeshare and no fees are paid, the resort will eventually foreclose. But during the months (or years) leading up to foreclosure, late fees, interest, and collection costs pile up against the estate. In some states, the resort can sue the estate for the unpaid balance. Ignoring the problem does not make it disappear — it makes it more expensive.

Do’s and Don’ts for Timeshare Inheritance

Do’s

• Do review the timeshare contract immediately. Understand whether the timeshare is deeded, RTU, or points-based — and whether it contains a perpetuity clause. This determines your legal rights and obligations.
• Do consult an estate planning attorney in the state where the timeshare is located. Timeshare inheritance law varies by state. An attorney familiar with local disclaimer procedures and probate requirements can save you thousands of dollars in mistakes.
• Do act within the nine-month disclaimer window. If you do not want the timeshare, file your Disclaimer of Interest as soon as possible. Do not wait.
• Do have the executor send the death certificate to the timeshare company. This puts the resort on notice that the owner has passed and can prevent them from pursuing heirs directly for maintenance fees.
• Do explore the resort’s deed-back or surrender program. Many resorts now offer legitimate exit options that cost little or nothing. This should be your first call before paying a third-party exit company.

Don’ts

• Don’t use the timeshare or accept any benefit before deciding. Accepting any benefit — a vacation stay, a rental check, even a small exchange credit — bars you from disclaiming.
• Don’t pay maintenance fees out of your personal funds. If you pay fees personally (rather than from estate funds), it may be construed as accepting the inheritance. Let the executor handle all payments from the estate.
• Don’t sign anything from the timeshare company without legal advice. Resorts may send forms or quitclaim deeds that you cannot legally execute until probate is complete.
• Don’t hire a timeshare exit company that demands large upfront fees. Legitimate help exists, but scammers far outnumber the honest operators. Be wary of unsolicited calls, “guaranteed” results, and high-pressure sales tactics.
• Don’t assume the timeshare has no value to anyone. While most timeshares depreciate, some prime-location, high-demand properties (like Disney Vacation Club or certain Hawaiian resorts) may still have resale value worth investigating.

Pros and Cons of Accepting an Inherited Timeshare

Pros

• Guaranteed vacation access. If the timeshare is at a resort your family already enjoys, inheriting it locks in access without a new purchase price.
• Potential rental income. In-demand timeshare weeks at desirable locations can be rented to offset maintenance fees. Some owners generate enough rental income to cover their annual costs.
• Points flexibility. Points-based systems from brands like Hilton, Wyndham, and Marriott let you book stays across hundreds of resorts, offering travel flexibility.
• Sentimental value. For many families, the timeshare represents decades of shared memories. Keeping it preserves that tradition.
• Step-up in tax basis. When you inherit a deeded timeshare, you receive a stepped-up cost basis equal to the fair market value at the date of the owner’s death, which can minimize capital gains if you later sell.

Cons

• Rising maintenance fees. Fees increase every year and are not optional. The average fee reached $1,480 in 2024, with many resorts planning increases of 10% or more going forward.
• Minimal resale value. Most timeshares are worth a fraction of their original purchase price. Many sell for $1 or less on the secondary market.
• Perpetual obligation. If the contract has a perpetuity clause, you are locked into payments for as long as you own it — and it passes to your heirs when you die.
• Probate costs and delays. Inheriting through probate costs money and takes time. Ancillary probate in a second state doubles the expense.
• Limited exit options. Getting out of a timeshare after you have accepted it is difficult and may require legal assistance, a deed-back, or allowing foreclosure.

Key Entities and Organizations to Know

American Resort Development Association (ARDA) — The trade association for the timeshare industry. ARDA publishes annual industry reports and advocates for the interests of timeshare developers. Verify any exit company’s claims by checking ARDA membership.

Federal Trade Commission (FTC) — The FTC issues consumer alerts about timeshare exit scams and has brought enforcement actions against fraudulent exit companies. Their website is a free resource for anyone dealing with a timeshare problem.

State Probate Courts — These courts oversee the transfer of timeshare interests after death. The court in the state where the timeshare is located has jurisdiction over the property, regardless of where the deceased lived.

Timeshare Homeowners Associations (HOAs) — Just like a neighborhood HOA, these associations govern the resort, set maintenance fees, impose special assessments, and can foreclose on owners who do not pay.

Estate Planning Attorneys — Attorneys who specialize in trusts, wills, and probate can help both current timeshare owners (to plan ahead) and heirs (to navigate the inheritance or disclaimer process). If the timeshare is in a different state than your residence, you may need an attorney licensed in both states.

Estate Planning Tips for Current Timeshare Owners

If you own a timeshare and want to protect your family from the complications described above, consider taking these steps now.

Transfer the timeshare into a revocable living trust. This is the single most effective action you can take. It avoids probate entirely — including ancillary probate in another state. For a deeded timeshare, your attorney prepares a new deed transferring the interest from your name to the trust’s name. For non-deeded timeshares, contact the resort to complete an assignment of your membership to the trust.

Consider a transfer-on-death deed. Some states allow transfer-on-death deeds (TODDs) that function like a beneficiary designation for real estate. Upon your death, your beneficiary submits a survivorship affidavit and becomes the owner without probate. Not all states have adopted TODD legislation, so check with a local attorney.

Explore a Lady Bird deed (if in Florida, Michigan, or Texas). A Lady Bird deed — also called an enhanced life estate deed — lets you keep full control of the timeshare during your lifetime while automatically transferring it to your beneficiary upon death, without probate. This deed is only recognized in Florida, Michigan, and Texas.

Talk to your heirs. Have an honest conversation about whether your family wants the timeshare after you are gone. If no one wants it, consider exiting the timeshare while you are alive — through a deed-back, resale, or negotiated exit — rather than leaving the burden to your family.

FAQs

Can you be forced to inherit a timeshare?
No. U.S. law allows you to refuse any inheritance, including a timeshare, by filing a Disclaimer of Interest within nine months of the owner’s death.

Does a timeshare automatically go to the surviving spouse?
No. It depends on how the deed is titled. If held in joint tenancy with rights of survivorship, it passes automatically. Otherwise, it goes through probate or follows intestacy laws.

Are heirs personally liable for unpaid timeshare maintenance fees?
No — unless they accepted the inheritance or used the property. The estate is responsible for fees. If the estate lacks funds, the resort may foreclose but cannot pursue heirs personally for the debt.

Can you disclaim just the timeshare but keep other inherited assets?
Yes. Under IRC § 2518, you can make a partial disclaimer, refusing the timeshare while accepting other assets from the same estate.

Does a will avoid probate for a timeshare?
No. A will only directs the probate court on how to distribute assets. The timeshare still goes through probate unless it is held in a trust or in joint tenancy with survivorship rights.

Can I donate an inherited timeshare to charity?
Yes — but only after you have legally accepted it through probate. Most charities are reluctant to accept timeshares due to the ongoing maintenance fee obligations. Tax deductions for donated timeshares are limited to fair market value, which is often minimal.

What happens if every heir disclaims the timeshare?
It reverts to the estate. The executor can attempt to sell it, return it through a deed-back program, or allow the resort to foreclose. The timeshare does not simply vanish.

Is there a way to exit a timeshare for free?
Yes — in some cases. Many resorts now offer deed-back or surrender programs at no cost, provided the account is current. Always contact the resort directly before paying a third-party exit company.

Can the timeshare company come after me if I disclaim?
No. If you properly file a Disclaimer of Interest and have not used or benefited from the timeshare, the resort cannot hold you responsible for any fees or obligations.

How long does timeshare probate take?
It varies. Simple estates may close in a few months. Contested estates or those requiring ancillary probate in a second state can take a year or more. During that time, maintenance fees continue to accrue.