1. File a Formal “Disclaimer of Interest”
A Disclaimer of Interest (or Renunciation) is a legal document where a beneficiary refuses to accept an inheritance.
- The Statutory Deadline: Under most state laws and Internal Revenue Code requirements, a disclaimer must be filed in writing within a strict timeframe—usually 9 months from the date of the owner’s death.
- The Probate Court: This document must be filed with the probate court handling the estate to ensure the timeshare does not pass to you by default.
2. Coordinate with the Estate Executor
The executor (or personal representative) of the estate holds the power to communicate with the resort during the probate period.
- The Death Certificate: The executor must send a certified copy of the death certificate to the resort’s membership or legal department to officially freeze the account status.
- The “Notice of No Assets”: If the estate has no funds to pay ongoing maintenance fees, the executor must notify the resort that the estate is insolvent regarding the timeshare obligation.
3. Neutralizing the Lender
If the timeshare still has an outstanding mortgage, the situation is even more time-sensitive.
- Notification of Death: The executor must notify the lender immediately to prevent them from initiating foreclosure actions that could complicate the probate process.
- Halting Collections: Informing the lender that the heirs have filed a Disclaimer of Interest signals that the bank cannot look to the beneficiaries for payment of the remaining balance.
The Problem with “Common Sense”
Many heirs assume that if they simply “don’t sign anything,” they are safe. This is a misconception. If the probate process concludes and the deed is recorded in your name because you failed to file a disclaimer, you are legally the owner. At that point, “walking away” becomes a breach of contract that can destroy your credit score.
Strategic Communication with Resorts
Resorts are notorious for ignoring death certificates and continuing to bill the estate. Your communication must be:
- Written and Verifiable: Never rely on a phone call to a resort’s “owner services”.
- Legally Cited: Using the correct state-specific probate codes in your disclaimer ensures the resort’s legal team recognizes that you are informed of your rights.
Conclusion: Securing Your Financial Legacy
Inheriting a timeshare should never be a surprise that ruins your financial health. By filing a Disclaimer of Interest and ensuring the executor handles the developer and lender correctly, you can honor your loved one’s memory without being burdened by their unwanted contracts.
The “How-To” Gap: Drafting a Disclaimer of Interest that satisfies both the probate court and the resort’s legal department is a technical task. Our Heirs Disclaimer Letter found in our Total Arsenal Exit Toolkit provides the precise legal language needed to refuse the inheritance and provide the necessary notices to the executor and the resort.