Bequeathing My Timeshares

ShippL · Jun 18, 2016

My wife and I own three Marriott timeshare weeks, about 4000 Marriott Trust points, and an every-other-year week at Royal Sands. We have four children, and we're about to re-do our will and probably set up a revocable trust. We'd like to be able to leave our properties and points as a pool to the four children, so that they could manage the usage among themselves without any of them having to take personal ownership (and then bargain among each other about trading off usage.) If possible, we'd also leave in the trust a fund for paying the maintenance fees. Advice from anyone who has done or attempted to do this sort of thing would be greatly appreciated. We meet with our lawyer for initial discussions at the end of June.

We also have a chunk of Marriott Rewards points. While we'll probably do our best to use all of those in our lifetime, we'd like to incorporate those into our estate as well, to the extent that's possible.

theo · Jun 18, 2016

lewiss said:
My wife and I own three Marriott timeshare weeks, about 4000 Marriott Trust points, and an every-other-year week at Royal Sands. We have four children, and we're about to re-do our will and probably set up a revocable trust. We'd like to be able to leave our properties and points as a pool to the four children, so that they could manage the usage among themselves without any of them having to take personal ownership (and then bargain among each other about trading off usage.) If possible, we'd also leave in the trust a fund for paying the maintenance fees. Advice from anyone who has done or attempted to do this sort of thing would be greatly appreciated. We meet with our lawyer for initial discussions at the end of June.

We also have a chunk of Marriott Rewards points. While we'll probably do our best to use all of those in our lifetime, we'd like to incorporate those into our estate as well, to the extent that's possible.

My advice is to first (... and long before your attorney consultation) make very certain via open discussion with your children that your children even want anything to do with the financial and contractual obligations inherently associated with timeshare ownership. What you may regard as a "gift", one or more of your offspring might very well later regard as an unsolicited and unwelcome surprise and burden.

I don't seek to put a negative spin on your obvious benevolence. I am merely suggesting that this is definitely a "both eyes wide open" situation where advance, open communication and clear understanding by all involved is a much wiser approach than making any independent, unsubstantiated assumptions entirely on your own.

ShippL · Jun 18, 2016

We've already been there.

Passepartout · Jun 18, 2016

Hmmm. 3 timeshares, and 4 heirs. Why not simplify and buy another TS, and -if as you intimated they all want one- bequeath one to each. Consider simplifying more by naming the child as primary owner with you as secondary. Might eliminate probate difficulties while allowing you to use the week a and guide the probable new owner on the ins-and-outs of TS ownership.

It's hard for me to fathom that 4 offspring in one family have equal desire and ability to use TSs, as mine wouldn't touch them with a 10 foot pole, but it is what it is. I have instructed them to simply refuse any unwanted 'assets' I haven't disposed of by the time I achieve room temperature. No one has to accept anything bequeathed them. A good concept to also discuss with your kids.

However you proceed, have your plans laid out by competent, local, licensed counsel.

Jim

theo · Jun 18, 2016

Passepartout said:
<snip>...hard for me to fathom that 4 offspring in one family have equal desire and ability to use TSs, as mine wouldn't touch them with a 10 foot pole.<snip>

Ditto in our clan...

I have to wonder whether the OP's offspring really and truly understand all of the gyrations (and uncertainties) of the advance reservation process, etc. --- required planning and effort which is separate and apart from annual maintenance fee obligations and / or whether or not said fees are "covered" by allocated trust assets. :shrug:

Sicnarf · Jun 18, 2016

Just like any sharing arrangements, there has to be very explicit rules who gets to use what and when especially if free. I own 15 VSE weeks, and I plan on doing the same thing someday. As I am renting most of my units now, I'm already getting my kids engaged by giving them the profit of any units they rent. I highly recommend you get them involved now instead of when you are gone.

VegasBella · Jun 18, 2016

Our plan is to keep our timeshares out of our trust. Our son is young and so we can't talk to him about what he would want but we certainly don't want to burden anyone with them. And we don't want them sucking funds from his inheritance.

Instead, we will leave the timeshares in the will. It will say he can have them if he wants them and we will leave specific instructions about how to get rid of them if he doesn't want them.

Bequeathing My Timeshares

ShippL

theo

TUG Review Crew: Veteran

ShippL

Passepartout

TUG Review Crew: Veteran

theo

TUG Review Crew: Veteran

Sicnarf

VegasBella