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Home » The Ultimate “Thanks, I Hate It” Gift: Why You Shouldn’t Put Your Timeshare in Your Trust

The Ultimate “Thanks, I Hate It” Gift: Why You Shouldn’t Put Your Timeshare in Your Trust

Estate Planning

Let’s talk about your legacy. You want to leave your kids the house, the vintage watch, and maybe that secret recipe for award-winning chili. What you don’t want to leave them is a financial zombie that eats their bank account for the next 40 years.
Enter: The Timeshare.
While it seemed like a great idea in 1998 after two margaritas in Cabo, putting your timeshare into your Living Trust might be the fastest way to become the “Least Favorite Parent” from beyond the grave. Here is why the team at Gaughan & Connealy usually recommends keeping that vacation interval far, far away from your trust.

1. It’s a Liability, Not an Asset

In the world of estate planning, we like assets (things that put money in your pocket). Timeshares are often liabilities (things that suck money out). Unlike your home, which hopefully appreciates, a timeshare’s value usually drops faster than a lead balloon. By putting it in a trust, you’re essentially “gifting” your children a mandatory, lifelong subscription to maintenance fees they never signed up for.

2. The “Perpetuity” Problem

Many timeshare contracts contain “perpetuity clauses.” This is fancy legal-speak for “this contract lasts longer than the Roman Empire.” If the timeshare is in your trust, the trustee is legally obligated to use the trust’s funds to keep paying those fees. You’re essentially forcing your hard-earned savings to pay for a condo in Branson that your kids haven’t visited since the Bush administration.

3. You’re Trapping Your Heirs

If you leave a timeshare to your kids in a Will, they have a secret weapon: The Power of Disclaimer. They can literally say, “No thanks, I’m good,” and walk away without any liability.
However, if the timeshare is tucked neatly inside a Trust, it becomes much harder to “refuse.” The trust owns it, the trust pays for it, and your kids are stuck with the leftovers. It’s like being forced to finish a plate of Brussels sprouts before you can have the rest of your inheritance.

4. The Resale Market is… Non-Existent

Have you ever tried to sell a used timeshare? It’s about as easy as selling a used toothbrush. Many owners end up trying to give them away for $1 on eBay just to escape the maintenance fees. Don’t leave your kids with a “gift” that they have to pay someone else to take away.

Chris and Casey’s Pro-Tip

If your kids truly love the timeshare and use it every summer, great! But if they don’t, keep it out of the trust. Let the timeshare company deal with the estate during probate. Often, the easiest way to “cancel” a timeshare is simply to stop paying when the owner passes away and let it go into foreclosure. Since it’s not in the trust, it won’t touch the rest of your family’s inheritance.
The Bottom Line: Your legacy should be about memories and financial security, not annual maintenance bills for a resort with a 2-star rating on Yelp.
Want to make sure your estate plan doesn’t include any “financial zombies”? Schedule a private consultation with Gaughan & Connealy today and let’s keep your legacy professional and protected.

📝 Frequently Asked Questions (The Stuff You’re Actually Googling)

Can my kids be forced to inherit my timeshare?
Short answer: No. U.S. law allows heirs to refuse any part of an inheritance, including a timeshare and its mountain of debt. However, they must formally file a “Disclaimer of Interest” usually within nine months of your passing. If they start using the weeks or pay a maintenance fee, they’ve accidentally “accepted” it, and the timeshare company will have its hooks in them.

What happens if I just leave the timeshare out of my trust entirely?
If the timeshare is in your name alone and your heirs refuse it, the timeshare company would generally have to open a probate case just to try and get their fees from your estate. If the rest of your assets are safe in your trust, there might be no money left for them to take. It’s essentially a “clean break” that protects your kids.

Will my trust be responsible for maintenance fees?
Yes. If you title the timeshare in the name of your trust, the trust itself may be legally obligated to pay those annual fees and any “surprise” special assessments. This means your Successor Trustee has to use the money you meant for your kids’ college funds or inheritance to keep that 2-bedroom suite in Branson afloat.

Can I sell my timeshare or give it back before I pass away?
You can try, but the secondary market is… let’s call it “challenging.” Some resorts offer “deed-back” programs where they’ll take the property back if you pay an exit fee. Otherwise, you might find yourself trying to sell it on eBay for $1 just to stop the bleeding.

What’s the difference between a “Deeded” and “Right-to-Use” timeshare?
Think of a Deeded Timeshare as owning a tiny slice of real estate—it lasts forever and triggers probate if not handled correctly. A Right-to-Use timeshare is more like a very long, very expensive lease that eventually expires. Both come with fees, but deeded ones are the bigger headache for estate planners.

Jamie Smead
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