Timeshares can be tricky because they often require huge maintenance fees and may not be used as often as intended when purchased. There are three common types of timeshares:
Fixed Time Period: You own a fraction of the overall property but receive a deeded contract for a specific unit for the same time period each year.
Floating Time Period: You own a fraction of the overall property and receive a deeded contract for a specific unit but you are allowed to choose different time periods from year to year.
Right to Use: This is a membership based contract where you lease, rather than own, the right to use the property according to the specific terms of the agreement.
The type of timeshare that you inherit will impact how it is handled during probate. If you inherit a deed based timeshare and it was not placed into a trust, it can be very cumbersome for the executor to sell, transfer or otherwise dispose of the timeshare, especially if it is located out of the state of Maryland. It is extremely difficult to sell a timeshare. There simply is not a high demand in the resale market. The maintenance fees imposed are a huge deterrent. Beware of companies claiming to buy you out of a timeshare. There are many scams associated with this practice.
If none of the beneficiaries plan to use the timeshare and no one wants to take responsibility for the maintenance fees associated with the property, then there may be a way to revert the timeshare during the probate process so that the property owner cancels the agreement based on the death of the owner.
The Maryland Real Estate Time-sharing Act regulates timeshare law under Maryland Code Title 11. If you need assistance in administering an estate that includes a timeshare property, contact the experienced attorneys at Stouffer Legal at 443-470-3599.