What Happens To A Florida Timeshare After A Loved One Passes Away?
Jack and Amber purchased a timeshare for a small property in West Palm Beach about ten years ago. When Amber passed away Jack discussed the possibility of their children occupying the timeshare when he passed on. Jack’s children have no interest in paying timeshare fees, being roped into the contract and have no intention of visiting West Palm Beach on a yearly basis because they live across the country. When a person owning a timeshare dies, does the contract die with them?
What is a Perpetuity Clause?
Most timeshare agreements are iron-clad. These contracts are difficult to get out of whether there’s been a divorce or death in the family. This is because most timeshare contracts contain a perpetuity clause. A perpetuity clause is a phrase meaning lasts forever or in perpetuity. This means even if the party to the timeshare contract passes away the timeshare contract is not void or cancelled. Instead, the contract would become part of the deceased’s estate. If there was no mention of the timeshare in a trust vehicle, then ownership of the timeshare would become another item that goes through probate administration.
Discuss Timeshares as Part of Estate Planning
Because a timeshare contract lives on after your death, it is important that if considering the purchase of a timeshare that you think about what would happen. If you do not have children or do not plan to have children, would you leave your interest to another relative? If you do have adult children, do they take an interest in the property, and do they want to continue paying maintenance fees and the costs associated with a timeshare for the remainder of their lives as well? If you purchased a timeshare with a spouse, have you discussed what would happen if the marriage ended in divorce? What would happen if you or a loved one were placed in a long-term care facility or would no longer be able to travel to enjoy the timeshare in advanced age? These are all items to consider before signing a timeshare contract.
If you already own an interest in a timeshare, make discussing it a part of your estate plan today. Talk it over with your children and loved ones and make a plan for the seamless transfer of ownership responsibilities after your death. Our attorneys at Millhorn Elder Law Planning Group can assist with this process.
Contact Our Villages Estate Planning Attorneys at Millhorn Elder Law Planning Group
No one purchases a timeshare thinking about how they won’t use it, and they certainly don’t go on vacation discussing the future of their estate, but it is a conversation you need to have,especially if you own one. Our attorneys at Millhorn Elder Law Planning Group can help you with estate planning needs, including planning for timeshare ownership and other vacation or real estate ventures. With offices located in The Villages, we are here to serve you. Call today to schedule a consultation.