Grand Luxxe estate obligation

[Socalkev]

My mother in-law is upgrading from a Grand Luxxe owner to whatever the next level is?
She is very secretive about the details of the deal and refuses to discuss it with her kids.
Their concern is she is 76 and in poor health such that she can only travel using a wheelchair thru the airport now, and is the past has been very responsive to the timeshare sales pitch, ( owns 9 facilities now and more weeks a year than she can use). So my question is what is the obligation to her estate after she passes? I don’t expect specifics here without he contract in front of you, but speaking in generalities and past history what is customary.
Happy thanksgiving and thanks in advance.

 

[mikenk]

You really need to get her to let you read the contract to understand what she has; pay special attention to the addenda. In particular, does she have the no pay unless she uses clause?

In general, all of the contract passes to the heirs without any costs. If she has the no pay unless she uses, then you will have 10 years to use as a vacation before having to spend any more money or just letting it go. My Kids and Grandkids come with us often; they have made it very clear they all want the membership. In fact, I have made some of my decisions based on what would suit them best long term.

The reality is that most of the upfront money she has spent is probably lost as they are hard to sell because of high transfer fees. However, if she has a premium membership, then the transfer fees are waived and it would have some value.

The bottom line is you really need to read the contract to understand all your possibilities.

Mike

 

[T-Dot-Traveller]

My mother in-law is upgrading from a Grand Luxxe owner to whatever the next level is?
She is very secretive about the details of the deal and refuses to discuss it with her kids.
Their concern is she is 76 and owns 9 facilities now and more weeks a year than she can use). So my question is what is the obligation to her estate after she passes? I don’t expect specifics here without he contract in front of you, but speaking in generalities and past history what is customary.
Happy thanksgiving and thanks in advance.

1) She probably just upgraded to a higher level Grand Luxxe ( Punta / Loft etc ) as there is no current "higher " Vidanta brand name .

2 ) Vidanta Contracts are RTU ( right to use ) and have a 10 year renewal cycle . ( ie renewal payment is often 1 MF cost / if no payment the contract expires)
so essentially there is no heir obligation .

3) She likely has - "no go /no pay" MF on use in her contract - so if not used in 2018, 2019 etc , no payment is required .
( this keeps wasting her "pre-payment " however , since the use year expires .)

******
When did she first buy into Vidanta / Grupo Mayan ? - IF-she registered for a Senior Certificate in person at Member Services ( between 2006-2009 ), she may get half off MF now and free use at 77 when she goes . ( ? worth asking )

While the "sunk money " is gone . These contracts have excellent vacation value and can be transferred to immediate family for no charge
( they are 100 year contracts , that is- they are renewable 9 times if you make a payment every 10 years . Since few people live that long ,
family can choose to take them over for free and all the special addendum will transfer .

If "sold"- to anyone else it requires a 10 x MF resort transfer fee . Vidanta did this so family can continue to use if desired but it eliminates resales on ebay .

Vidanta Member Services in Nuevo can email a PDF copy of the contract . (You would need them to confirm her permission to do so )
Member Services IS NOT sales and has a good reputation on the TUG forum . They focus on what is agreed in a contract and honor it .

****
RE - her other 8 ownerships - family can ALWAYS refuse to accept from an estate .
even if they are deeded . They estate lawyer would be involved etc . TUG has threads on this .

< Just saw Mike posted ahead of me / he knows his stuff on Grand Luxxe specifics
since he has owns that brand . I own the Mayan Palace brand . As he stated - the specific addendum can vary in Vidanta contracts . Mike gets free golf when there - because he negotiated it / your mother in law may not have that addendum .>

Happy Thanksgiving

 

[rpennisi]

RussellSun on another thread states, "There is no way out with Vidanta like with other good timeshares."

I have to say that I think the opposite is true. A Mexican timeshare runs out in 25 years (old Vidanta contracts, but most have low transfer charges) or 10 years (newer Vidanta GL and GB contracts with onerous transfer charges). No go no pay exists for a lot of the newer contracts and some of the older ones as well.

The point is there is an out. I know my Mx timeshares have an expiration date with no monies needed from me or my heirs to pay.

On the other hand, most US timeshares have lifetime deeded weeks. SocalKev, these are the timeshares that the heirs of your MIL will have to deal with.

I am guessing that most of the other TS contracts she owns are US based. Those are the ones that you should check out.

As T-Dot mentions above, the GL contracts are an excellent vacation value costing you nothing unless you use them, trade them, or rent them.

 

[Eric B]

The latest version of the GL contract I have lists a transfer fee equal to the closing costs listed on the contract page, so there are some differences in them. That’s for transfer out of family/heirs only; for them it’s a free transfer.

 

[Socalkev]

She had mentioned the no use no pay, and the 1/2 price mf (sr discount possibly?) She gets very defensive when asked about the details so her kids get concerned whenever she returns from a trip with a new best friend. She is susceptible to believing the sales people at face value when they gush over her, that’s what she wants hear. Our own experiences have led us to be far more wary of the over promising and under delivering. From your replies it sounds like the contract may not be as bad as we thought. We don’t think anybody will ever see any of the up front money invested and probably no resale value as well, our concern is continued mf for a long term.
Thanks for the replies!

 

[Passepartout]

She has spent a LOT of money that you (and her other heirs) will see little- if any- of. If you're OK with that, the best way forward after she is no longer using these weeks is for you and the family to get together there and honor her memory. I have a hunch that she wants you to enjoy these like she has. Otherwise, since it's 'No Use, No MF', and they will expire in time, you don't have any pesky deeds to worry about like you would if these were at U.S. timeshares.

It COULD be worse. They are VERY NICE properties.

Jim

 

[mikenk]

At 76, she would be on half price so I'm sure she has the Senior discount; next year, it will be free. That benefit will not transfer - but all others will at no cost. With the no use - no pay clause and with her just upgrading, neither she or you will have any fees for 10 years unless you use. If you knew what she upgraded to, we could probably have some clearer answers.

As Ron mentioned, any deeded timeshares she owns will be your problem - not this one.

Mike

 

[Eric B]

As T-Dot mentioned above, for the other timeshares when the time comes, you don’t have to accept inheriting them. You will have to deal with actually rejecting them if you don’t want them, but the obligation to pay MFs can’t be forced on you.

 

[Socalkev]

She also mentioned that the Mexico Timeshares (GL) are converting to a “title” type system? That raises some concerns, history tells me any changes in the program are very onesided.

 

[rpennisi]

For a newbie you have good insight Kev. Hopefully she didn't buy a quarter share or greater contract from Vidanta. Big bucks.

 

[Conan]

what is the obligation to her estate after she passes?

Please see my answer to a similar question asked here earlier in the year:
https://tugbbs.com/forums/index.php...timeshares-to-get-rid-of.263172/#post-2058109

I can't speak to Mexican law, but I suspect you could reject the timeshare property if you wanted to just walk away.

 

[T-Dot-Traveller]

She also mentioned that the Mexico Timeshares (GL) are converting to a “title” type system? That raises some concerns, history tells me any changes in the program are very onesided.

Vidanta has built legitimate full ownership condo's in Nuevo Vallarta (Mayan Island) / Acapulco and Puerto Penasco / (Mayan Lakes)( PP is a 4 hr drive from Phoenix )
<The founder is an engineer and likes building >

Their contracts (for at least the last 20 years) have stated that a percentage(20 %/ ?) of what you paid for your TS contract equity can be converted into( essentially a down payment on such a unit ) when they build/sell them .

Vidanta has an "under development” location called Eastcape that is near Cabo . There was also an article in the Spanish version of The Vidanta Traveler that shows picture of something
called THE ESTATES , to be built at their Riviera Maya location .
There are rumours /suggestions that both locations include /are full ownership or perhaps true fractional ownership

IMO - The TS sales force for existing owners is talking about this option , especially to Grand Luxxe owners .
HOWEVER - (when built or during pre-build) this will simply be an up-sell option . It does not change anyone's existing contract .( unless they convince someone to buy)

 

[pianoetudes]

She probably just upgraded to a higher level Grand Luxxe ( Punta / Loft etc ) as there is no current "higher " Vidanta brand name .

I've heard GL level Gold and Platinum. It is in the contract depending how much $$$ you purchase the weeks. They have dedicated 800 number and other perks.

The sales person at GL RM mentioned some new amenities (still under development) near The Beach Club RM, is exclusive for Gold or Platinum, meaning GL "standard" cannot use them.

 

[rpennisi]

I am not doubting that the sales dept said that the "village of shops" just south of the Beach Club RM would only be for Gold and Platinum members.
But as many have said before, if the sales person's lips are moving, they are lying.
Makes no sense to me. It would become a very small clientele using these shops.