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Do you have A Timeshare Timebomb?

Many may be blissfully unaware of the burden of owning a timeshare property in perpetuity – so here, with the help of partner Edward Rees I take a look at what it's all about.
 
Q    What is perpetuity?

A    When a timeshare contract is written in perpetuity it means ownership will continue even when you die. This means the timeshare will form part of your estate. So far so good. But that also means that your estate (and, by extension, your beneficiaries) would become liable for any fees associated with the property. Not only that - if it's in perpetuity - so would the beneficiaries of your beneficiaries' wills, and so on.

Q    Can I leave the timeshare property out of my estate?

A    Absolutely not. This property forms part of your estate and therefore the ongoing expenses associated with it will have to be paid, by your estate, until the property is sold – assuming your executors wish (and are able) to sell it. Any beneficiaries of your will are obliged to accept the property if it forms part of the estate that is left to them. If your will is silent about the timeshare, it will pass to your residuary beneficiaries. The only way beneficiaries can disclaim the timeshare is to give up their entire inheritance.

Q    How easy is it to sell a timeshare property?

A    It can be very tricky indeed, particularly if your timeshare is out of season. Many timeshare properties end up being sold for almost nothing at auction.

Q    So what are my options?

A    Well you can plan ahead and, particularly if you no longer use the timeshare, you could consider finding out whether there is someone who’d like to buy it. Also, think very carefully before entering into a timeshare agreement, take your time and take professional advice.

You can contact Edward on 01743 280280 or email him edward.rees@lblaw.co.uk