The resort agent suggested that the Mom and Dad sign a deed transferring the timeshare to their children after they die.
These fees are usually around $1,000.00 per year and can go up. Extraordinary events, such as hurricane damage, could result in additional charges. Regular annual increases of up to four percent could be more than inflation. In ten years, the average four-percent increase in inflation would see the children paying $1,477.00. This is an increase of approximately 48%.
The fees would also be payable to the children, regardless of whether or not they used the property.
You should act quickly if you find yourself in this situation. While you should comply with the resort’s demands, you must also contest them by sending a protest note along with your payments. You should use the estate money of your parents to pay the fees. This is not money you have in your bank account. Or you could endanger your freedom from the shares. You have a very limited period under the state statutes of limitations if you need to sue.
Although the resort may have a resale plan, many don’t. You might find something in the contract that talks about selling or giving back the shares to the resort. This may be subject to additional fees.
You should never pay in advance for termination services and you shouldn’t be afraid to take threats.
It is highly recommended that you hire local legal counsel to represent your interests. As lawyers, we’d say so but beware of any online promises to sell you shares or exempt you from the obligation through “exit” services. This area is a magnet for scammers or companies that don’t deliver on their promises.
You should not sign any agreement unless your lawyer has approved it. Your lawyer will ensure that the deal is a complete “renunciation” of property. This means that any agreement you sign must expressly and completely exempt you from all relationships with the resort.
This article was written by Alla Tenina. Alla is one of the best bankruptcy attorneys in Los Angeles California, and the founder of Tenina Law. She has experience in bankruptcies, real estate planning, and complex tax matters. The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user, or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.
