Settling Father's estate - 3 timeshares to get rid of

[kgargr]

Hi
My father passed last October.
Three of us children inherited 'the estate', which includes 3 timeshares. The estate is in process of being settled.
Two of us children are also the executors.

I have read in a few other threads, that those that inherit the timeshares can 'refuse' the inheritance.
BUT, if they do so, the executor still has to figure out what to do with the timeshares. So, for us, since we are both the people that inherited AND the executors, we still have to deal with the situation.

The 3 timeshares are:
1. Oceanview Island Club
2. Bluegreen Orlando Sunshine
3. Festiva - Hot Springs Village Los Lagos

Some of the threads mentioned just defaulting. But I had read that wasn't a good idea .. they can just come after the estate??

Also, before I reach out to our lawyer ... we had thought we could handle the sale just by having our executor papers ... but on this site, it says that the timeshares would have to go through probate in the applicable state (here, Florida, Arkansas, South Carolina).

So, I guess my questions are:
1. Can we really just stop paying maintenance fees (i.e. default) and have no repercussions?
2. If we choose to sell, do we have to go through probate in each applicable state?

Thanks for any assistance ..
Karen

 

[DeniseM]

I am not an attorney, but I have been an executer a couple of times, so this is my personal opinion.

I don't know if any of these timeshares have any resale value, because I am not familiar with them, but assuming they don't:

If I were the executer, I would have all the heirs formally refuse the inheritance, and then send copies along with a firm letter to the resort management company stating that the heirs have refused the inheritance, and the estate is returning the deed to the resort. You may want to have your estate attorney write the letter.

Then I would distribute the rest of the estate as usual.

The estate will not be applying for credit, so you don't care if they foreclose.

 

[Passepartout]

It's called an 'ancillary Probate' and involves each state in which there is 'Real' property (like mineral rights or deeded timeshares). It depends on how much pushback you get from the individual resorts. Some might just accept a quitclaim 'deedback' from the estate. Some may not. There can be some cost involved. You should probably reach out to your lawyer. The executor(s) can have personal responsibility for decisions regarding the estate.

Jim

 

[Talent312]

Do not consider what follows to be legal advice, merely armchair quarterbacking:

Real property (which includes deeded TS's) is subject to probate in the state
in which located (unless the deed specifies a survivor).

If a decedent's estate is open elsewhere, an "ancillary administration" is done.
The estate's lawyer may need to hire a lawyer licensed in the "ancillary" state.

An heir who does not want any part of a TS should file a written "disclaimer."
The HOA is supposed to be notified of the death and it's right to file a claim.
Typically, claims not filed in a certain period of time after notice are barred.
After that, neither the estate nor heirs have any further $$-liability for the TS.
The executor can offer to deed it back in lieu or foreclosure, or let it be done.
.

 

[kgargr]

Thanks all, this is helpful, my head is spinning.

 

[Conan]

If the Executors abandon the property, there's nothing for the beneficiaries to disclaim. At least as a starter, the Executors could write to timeshare management that per SC Code Section 62-3-715(6)/Arkansas Section 28-49-106/Florida Probate Code Section 733.612 they are abandoning the property, they will not be paying maintenance fees accruing post date-of-death, and offering a quitclaim deed-back of the property.

South Carolina:
SECTION 62-3-715. Transactions authorized for personal representatives; exceptions.
Except as restricted or otherwise provided by the will or by an order in a formal proceeding and subject to the restrictions imposed in Section 62-3-711(b) and to the priorities stated in Section 62-3-902, a personal representative, acting reasonably for the benefit of the interested persons, may properly:
....
(6) subject to the restrictions imposed in Section 62-3-711(b), ... abandon an estate asset....
http://www.scstatehouse.gov/code/t62c003.php

Arkansas:
Title 28 § 28-49-106. Property subject to abandonment
When any property is valueless, or is so encumbered, or is in such condition that it is of no benefit to the estate, the court may order the personal representative to abandon it.
http://codes.findlaw.com/ar/title-2...ary-relationships/ar-code-sect-28-49-106.html
[Technically that means starting ancillary probate in Ark. and filing with the Probate Court, but maybe you can just do the deed-back anyway.]

Florida:
Probate Code Section 733.612 Transactions authorized for the personal representative; exceptions.—Except as otherwise provided by the will or court order, and subject to the priorities stated in s. 733.805, without court order, a personal representative, acting reasonably for the benefit of the interested persons, may properly:
....
(9) Abandon property when it is valueless or so encumbered, or in a condition, that it is of no benefit to the estate.
http://www.leg.state.fl.us/Statutes...ng=&URL=0700-0799/0733/Sections/0733.612.html

 

[kgargr]

Thanks for this info!

 

[geist1223]

This is not legal advice. Another route is to have the Estate continue paying the Maintenance Fees. The timeshares will be happy. I assume you are doing a formal probate so there has been a legal notice published in the News Paper for any party having a claim against the Estate to file the claim. In the final closure of the Estate have each heir submit a document disclaiming the inheritance of the time shares. Close the estate and move on. Also at final closure no more payments to the timeshares.