\n<\/p>\n
When a parent dies, families brace for the big stuff: the house, the IRA, the funeral bill. Then somebody opens a desk drawer and finds the timeshare paperwork.<\/p>\n
That\u2019s when the real headache starts. A timeshare doesn\u2019t stop sending bills just because its owner is gone, and somebody in the family is going to get asked who\u2019s paying.<\/p>\n
Here\u2019s the good news: In most cases, you don\u2019t have to take it. The law lets an heir formally refuse an inheritance \u2014 but to be safe, you need to do it in writing, on time and without acting like an owner first.<\/p>\n
I\u2019ve been a CPA since 1981, and this is one of those rules that looks simple on paper and is easy to blow in real life. Here\u2019s how to get it right.<\/p>\n
A timeshare isn\u2019t a vacation. It\u2019s a bill with an ocean view.<\/p>\n
According to the American Resort Development Association<\/a>, the industry\u2019s own trade group, the average maintenance fee for a one-week timeshare was $1,550 in 2025. That\u2019s 4.7% more than the year before.<\/p>\n And it\u2019s not a one-time hit. The Federal Trade Commission (FTC)<\/a> warns that these fees tend to rise at least as fast as inflation.<\/p>\n Run the numbers. If fees kept climbing at 2025\u2019s pace, that $1,550 bill would be about $2,340 a year within a decade. Over those 10 years, you\u2019d hand the resort roughly $19,200 \u2014 before buying a single plane ticket or a single margarita.<\/p>\n That\u2019s the inheritance. Now let\u2019s talk about how to turn it down.<\/p>\n This is where well-meaning heirs trip. You can\u2019t refuse property you\u2019ve already accepted, and accepting it doesn\u2019t require signing anything.<\/p>\n Under IRS regulations<\/a>, acts that count as accepting include using the property, collecting rent from it, or directing other people to do something with it.<\/p>\n In plain English: Don\u2019t book Mom\u2019s week at the resort \u201cone last time.\u201d Don\u2019t rent it out to cover the fees. Don\u2019t call the resort and tell them to put it in your name.<\/p>\n Be careful about paying the maintenance bill out of your own pocket while you decide, too. Whether that looks like ownership is exactly the kind of question to put to the estate\u2019s attorney before you write a check.<\/p>\n One bit of relief: Simply receiving the deed or title papers doesn\u2019t count as accepting, according to the same regulations.<\/p>\n The legal term for refusing an inheritance is a \u201cdisclaimer.\u201d For it to count under federal tax law, it has to be delivered within 9 months of the transfer that gave you the property. For an inheritance, that clock generally starts when your parent dies.<\/p>\n If a grandchild is in line, there\u2019s a twist: For heirs under 21, the 9 months don\u2019t start until their 21st birthday.<\/p>\n Nine months sounds like plenty. It isn\u2019t. Grief, probate paperwork and family debates eat up time fast, and the deadline doesn\u2019t care.<\/p>\n One more thing: The 9-month deadline comes from federal tax law. Whether your refusal actually works is decided by state law, and state rules on deadlines and paperwork vary. Have the estate\u2019s attorney confirm what applies in the state where your parent lived.<\/p>\n Quick thought \u2014 most financial \u201cgurus\u201d got rich selling advice, not following it. I\u2019d rather show you what actually works, because I\u2019ve lived it. Sign up for the free Money Talks Newsletter<\/a> for money advice from someone who takes his own. 10 seconds, no spam.<\/em><\/p>\n A phone call to the resort doesn\u2019t count. Neither does an email to your sister.<\/p>\n Under the federal rules, your refusal has to be in writing, and it has to be irrevocable and unqualified \u2014 meaning no take-backs and no strings attached.<\/p>\n It also has to land with the right person: the representative handling your parent\u2019s estate, usually the executor, or whoever holds legal title to the timeshare.<\/p>\n Keep a copy and get proof that it was delivered. If the resort comes calling a year from now, that piece of paper is your answer.<\/p>\n Here\u2019s the catch nobody mentions at the funeral. When you refuse an inheritance, you don\u2019t get to decide where it goes. The rules require it to pass without any direction from you.<\/p>\n So the timeshare simply moves to whoever\u2019s next in line. That might be a sibling. It might be your own kids.<\/p>\n If you\u2019re saying no, tell the rest of the family. The next heir may need to file a refusal of their own.<\/p>\n As long as you haven\u2019t accepted the timeshare, the fees your parent owed aren\u2019t your personal problem.<\/p>\n The FTC<\/a> says family members generally don\u2019t have to pay a dead relative\u2019s debts out of their own money. Those debts are the estate\u2019s to pay. And if the estate runs out of money, the FTC says the debt usually goes unpaid.<\/p>\n There are exceptions. You could be on the hook if you co-signed, if you\u2019re a surviving spouse in a community property state such as California or in a state that requires spouses to pay certain debts, or if you\u2019re the executor and didn\u2019t follow your state\u2019s probate rules.<\/p>\n We walk through those exceptions in more detail as we answer who really pays when Mom dies owing $38,000 on credit cards<\/a>.<\/p>\n The industry knows how this ends, by the way. Jason Gamel, president and CEO of the American Resort Development Association, told Tampa public radio station WUSF that unwanted timeshares can often go back to the developer \u2014 or, when the payments stop, eventually wind up in foreclosure.<\/p>\n Maybe you used the week last summer, or you\u2019ve been paying the fees for a year. It\u2019s too late to refuse it, but you\u2019re not trapped.<\/p>\n Start with the source. The FTC\u2019s advice is to call the company that sold the timeshare, or the outfit that runs the resort, and find out what your options are before you pay anybody else.<\/p>\n Some big developers have offered their own exit programs. Wyndham, for example, launched a free one in 2021 for owners in its vacation clubs, with no upfront fees. Ask whether your resort offers something similar.<\/p>\n Then guard your wallet, because the scammers know grieving families are easy marks. The FTC flags these as signs of a timeshare exit scam:<\/p>\n The FTC also warns about phantom buyers. A so-called reseller claims to have someone ready to buy but says you\u2019ll need to wire a few thousand dollars first to cover taxes and closing. There\u2019s no buyer, and your money\u2019s gone.<\/p>\n If you use a reseller, pick one that collects its fee after the sale, not before. And the FTC is blunt about anyone who guarantees a sale: That\u2019s a scammer.<\/p>\n Selling one isn\u2019t easy, as we explain in \u201c\u2018I Can\u2019t Even Give It Away\u2019: Why Retirees Are Desperate to Dump Their Timeshares<\/a>.\u201d<\/p>\n If you\u2019re the one holding the timeshare, don\u2019t make it part of your legacy. Ask your kids now whether anybody actually wants it. If not, start working on an exit while you\u2019re still around to handle it.<\/p>\n At the very least, make the timeshare part of your estate plan, and make sure your executor knows where the paperwork is. If you don\u2019t have a plan yet, you can find help getting one in our Solutions Center<\/a>.<\/p>\n Your parents bought that timeshare for the memories. You don\u2019t have to buy the bills.<\/p>\n<\/p><\/div>\n2. Don\u2019t touch it \u2014 not even once<\/h2>\n
3. Watch the 9-month clock<\/h2>\n
4. Put it in writing, to the right person<\/h2>\n
5. Remember that it goes to the next person in line<\/h2>\n
6. Know that Mom\u2019s unpaid bills belong to the estate<\/h2>\n
7. Already said yes? Get out without getting robbed<\/h2>\n
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If you own a timeshare, spare your kids this<\/h2>\n