For many retirees, a timeshare represents years of family vacations, traditions, and memories. It’s natural to assume it should pass down to the next generation.

But here’s the reality:

A timeshare is one of the most commonly inherited assets that beneficiaries don’t actually want. And unlike other assets, it’s not always easy to sell—or even give away.

The Challenge with Leaving a Timeshare in a Trust

From an estate planning standpoint, timeshares are unique—and often problematic.

Why they create issues:

  • Ongoing financial obligation: Annual maintenance fees can range from hundreds to thousands of dollars—and they typically increase over time
  • Limited resale market: Many timeshares have little to no resale value
  • Transfer restrictions: Some companies make it difficult to transfer ownership
  • Perpetual contracts: In some cases, the obligation doesn’t simply go away

What feels like a meaningful asset can quickly become:

A recurring expense your beneficiaries didn’t sign up for.

The Hard Truth About Timeshare Value

This is where expectations and reality often diverge.

Many owners assume:

“We paid $20,000+ for it—it must still be worth something.”

In practice:

Some timeshares sell for a few hundred dollars—or nothing at all. In certain cases, owners must pay a third party to take it off their hands.

That’s not an estate planning problem—it’s a liquidity and liability problem.

Before You Leave a Timeshare to Your Beneficiaries

This is one of the most important (and often skipped) steps:

Have the conversation.

Do not assume your beneficiaries want the timeshare.

Ask:

  • Are they willing to use it consistently?
  • Can they afford the annual maintenance fees?
  • Do they understand the long-term commitment?

If the answer is unclear or hesitant, that’s your signal.

A timeshare should never be a surprise inheritance.

What Happens If You Leave It in the Trust Anyway?

If a timeshare is included in your trust and passes to beneficiaries:

  • They may accept it and take on the obligation
  • They may attempt to sell or transfer it (often difficult)
  • They may try to disclaim the inheritance entirely

In some cases, this can create:

  • Delays in estate administration
  • Additional legal and administrative costs
  • Friction between beneficiaries

Alternative Strategies to Consider

If your beneficiaries don’t want the timeshare, you still have options.

Exit While You’re Alive

Work with the timeshare company or a reputable exit firm to terminate ownership.

  • This may involve a fee
  • But it allows you to control the outcome instead of leaving the burden behind

Do Not Specifically Allocate It in the Trust

Instead of naming a beneficiary, allow the asset to pass through the estate structure.

  • This gives flexibility for your trustee to handle disposition
  • Avoids forcing a specific beneficiary into ownership

Build in Trustee Discretion

Your trust can allow the trustee to:

  • Sell
  • Transfer
  • Or abandon the asset if appropriate

This avoids locking your plan into a decision that may not make sense later.

Offset the Burden

If a beneficiary does want the timeshare:

  • Consider allocating additional assets to offset the cost
  • Or setting aside funds specifically for maintenance fees

A Practical Way to Think About It

If your beneficiaries actively want and will use the timeshare → It can be part of your plan.

If there is any hesitation → It should not be treated like a traditional asset.

Final Thought

Timeshares are emotional assets—but estate planning is a financial and practical exercise.

The goal is not just to pass things down.

It’s to pass down value.

And sometimes, the best decision is not what you leave—but what you choose to resolve ahead of time.

Call to Action

Decisions like this don’t happen in isolation—they affect your trust, your estate, and in many cases, court reporting requirements down the road.

At Smith Marion, we support clients through:

  • Trust & Estate Planning Support: Evaluating how assets like timeshares impact your trust structure, beneficiaries, and long-term wealth transfer
  • Estate & Trust Accounting: Ensuring accurate tracking, reporting, and compliance for fiduciaries and trustees
  • Court Accounting Services: Preparing clear, court-ready accountings for estates, conservatorships, and trust matters in California

Whether you are planning ahead or already navigating a transition, we help bring clarity, structure, and compliance to complex financial decisions.

If you have a timeshare—or any asset you’re unsure about—let’s walk through how it fits into your plan so you can move forward with confidence.