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How Do Timeshares Work with Your Trust?
As summer approaches and vacation season kicks into high gear, it’s a good time to talk about a question we often get from clients: “How do timeshares fit into my estate plan?”
I’ll be honest—as an estate planning attorney, I’m not a huge fan of timeshares. That said, many people own them, and it’s important to understand how to properly fund a timeshare into your trust.
First, Know What Type of Timeshare You Have
There are generally two types of timeshares, and each one is treated differently when it comes to estate planning:
1. Deeded Timeshares
This type of timeshare means you hold an ownership interest in a piece of real property. Your name is on the deed, along with others who share ownership of that property. Each owner has a contractual agreement outlining how the property is used throughout the year.
If you have a deeded timeshare, it's essential to make sure your share of the ownership is transferred into your trust. If it’s not properly titled, your loved ones could end up dealing with probate to handle your interest in that property.
2. Contract-Based Timeshares
These are often offered by large companies like Disney, Hilton, and Marriott. In this case, you're not on a deed. Instead, you’re a party to a contract that gives you usage rights to properties within their network.
With these contract-based timeshares, the process is different. Since there's no deeded property, there’s often nothing to "fund" into your trust in the traditional sense. However, it’s worth contacting the company to see if you can:
- Add your trust as the named contract holder
- Designate a beneficiary within the contract
Because each company has its own policies, it's important to contact them directly to understand what options are available.
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