Mar. 18, 2018
Question: What if my kids do not want our deeded timeshare properties after we are gone?
Question: Can my wife and I leave a timeshare deeded property to our children, without a lot of hassle, if they want? See answer below.
Answer: Yes. Check out “Transfer On Death” Deeds here. Almost every state has these easy to complete documents.
Question: I am doing trust planning, and considering adding my timeshare. However, it has little to no value. Should I add this to my trust, or leave it out?
Answer: If you made a bad decision in buying your timeshare, and are stuck making high annual upkeep pays, perhaps don’t pass this legacy on to your children. Your demise will provide a chance to stop the timeshare madness.
Some timeshares, like Disney’s Vacation Club, are assets that can be resold. Your timeshare sounds like it has no resale value. Think of it as a liability. Adding the timeshare to your trust passes this liability on to your successor trustees after you die.
However, if you keep the timeshare out of the trust, it will require probate to pass to the next generation. If you are using a trust for the rest of your assets, your kids may never probate your estate. This would leave the timeshare company out of options, causing them to simply foreclose on the unit. Strategically organizing your estate can maximize assets and minimize liabilities for your kids.
Why a Quit Claim Deed?
A quitclaim deed does not contain any implied warranties. The owner who quit-claims real estate simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. The quitclaim owner makes no promises and the property is taken “as is.” A quit claim is the easiest and cheapest way to transfer ownership to a trust, add or remove a co-owner or give away a timeshare.
Why Record the Deed?
Not only must a quit claim deed be properly prepared, the original deed must be physically presented to the county recorder of the county where the real property is located. The deed must be made part of the public record so the world knows there has been a change of ownership.
Make it Legal
A properly prepared quit claim deed must have a legal description so the county recorder can add the deed to the public chain of title. The legal description is not the street address. The legal description has at a minimum the map, block and lot number of the real estate property. County recorders will not accept a quit claim deed without a legal description.
Easy answer for deeded timeshare property is the “Transfer On Death” for adult children or relatives who would like to take over your deeded timeshare properties after you are gone.