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Timeshares and Your Will: What Happens When You Die?

· 16 min

Note: The following scenario is fictional and used for illustration.

Margaret, 68, from Bournemouth, owned a Spanish timeshare for 32 years. When her husband died in 2023, she discovered she couldn't simply walk away. The contract stated it was binding "in perpetuity." Her two adult daughters, named in her will, dreaded inheriting the £1,200 annual maintenance fees for a property they'd never use.

Margaret spent her final months desperately seeking exit strategies, fearing her death would saddle her children with a financial burden rather than the inheritance she'd hoped to leave.

Timeshare owners face a unique estate planning challenge: an "asset" that's actually a liability, with contracts designed to transfer obligations across generations. An estimated 500,000+ UK households own timeshares, many purchased decades ago under aggressive sales tactics, now seeking ways to end commitments that threaten to burden loved ones with perpetual fees.

This guide explains what happens to your timeshare when you die, your family's legal rights to refuse inheritance, and how to address timeshares in your will.

Table of Contents

Are Timeshares Assets or Liabilities in Your Estate?

Timeshares are technically "assets" that form part of your estate when you die, even if they have zero resale value. Under UK law, any property interest you own becomes part of your estate, regardless of whether it generates income or costs you money.

But here's the problem: most timeshares function as liabilities, not assets. The ongoing maintenance fees far exceed any resale value. David, 71, from Manchester, owned a timeshare originally purchased for £8,000 in 1998. Today, it has no market value, but annual fees have grown to £1,350.

The distinction between deeded and contractual timeshares matters significantly. Deeded timeshares are leasehold interests—you own an actual property interest that automatically forms part of your estate. These are governed by the Timeshare, Holiday Products, Resale and Exchange Contracts Regulations 2010. You can learn more about including property in your will and how property interests are handled.

Contractual right-to-use agreements are more complex. You don't own property—you have contractual rights to use specific accommodation. Under UK common law, the burden of a contract cannot typically be assigned without consent, raising questions about whether perpetuity clauses forcing inheritance are legally enforceable.

Most UK timeshares listed for resale sell for £1 or are given away free. The timeshare resale market has effectively collapsed, leaving owners with ongoing financial obligations but no exit strategy.

What Happens to Your Timeshare When You Die?

If you own your timeshare solely, it passes to your estate. Your beneficiaries inherit it according to your will, or if you die without a will, according to intestacy rules. The timeshare doesn't disappear—someone must take responsibility for it.

If you own the timeshare jointly with another person, the surviving owner typically assumes full responsibility and all liabilities. Joint ownership usually includes a right of survivorship, meaning the timeshare transfers automatically to the surviving co-owner.

Emma, 45, inherited her mother's timeshare under intestacy rules along with two siblings. Each became co-owner, jointly liable for £1,600 in annual fees. The total annual cost of £4,800 divided three ways created an unwanted financial burden none of them could afford.

Your estate remains liable for maintenance fees from the date of death until the timeshare is transferred, returned to the developer, or formally disclaimed by beneficiaries. These fees continue accruing during the probate process, which typically takes 6-12 months.

Executors must list the timeshare as an estate asset in probate applications, even if it has no market value. The liability for ongoing fees creates complications that can delay estate distribution and reduce the inheritance available to other beneficiaries.

Deeded vs. Contractual Timeshares: Why the Type Matters

Understanding whether you own a deeded or contractual timeshare determines how it's treated when you die.

Deeded timeshares are leasehold interests in real property. You own a fractional interest in the physical property, typically for a fixed term of years. This ownership interest is personal property that automatically forms part of your estate. It passes to beneficiaries just like any other property you own.

Contractual right-to-use timeshares grant you the right to use accommodation without owning any property interest. You have a contract with the resort operator, not a property deed. This creates legal uncertainty about inheritance.

Under UK common law, contractual obligations cannot be forced onto someone without their consent. The principle is clear: you cannot assign the burden of a contract to another party. This suggests perpetuity clauses requiring your heirs to inherit contractual obligations may not be enforceable under UK law.

Robert, 63, from Liverpool, discovered his "in perpetuity" contract was contractual, not deeded. His solicitor advised that the enforceability of perpetuity clauses for contractual timeshares remains legally questionable, potentially giving his beneficiaries stronger grounds to refuse.

Check your contract documents carefully. Look for words like "leasehold interest" or "deed" versus "right to use" or "membership." The distinction affects your beneficiaries' legal position.

Feature Deeded Timeshare Contractual Timeshare
Ownership Type Leasehold property interest Contractual use rights
Estate Treatment Automatic inclusion Questionable enforceability
Beneficiary Options Inherit or disclaim May challenge inheritance requirement
Legal Clarity Well-established Evolving legal position

Can Your Beneficiaries Refuse to Inherit Your Timeshare?

Yes. Under UK inheritance law, no person can be compelled to accept a gift under a will or to inherit property from an estate. Beneficiaries can refuse through a formal process called disclaimer.

To disclaim effectively, beneficiaries must:

  • File a written disclaimer within two years of your death
  • Disclaim before receiving any benefit from the timeshare
  • Disclaim the entire gift as specified in the will
  • Not redirect the disclaimed interest to someone else

The critical restriction: beneficiaries cannot cherry-pick. They must disclaim the entire gift as written in your will. If your will leaves "my entire estate including my timeshare" to your daughter, she must accept everything or disclaim everything.

Sarah, 34, from Brighton, faced exactly this dilemma. Her father's will left her his entire estate, valued at £45,000, which included a Spanish timeshare with £1,300 annual fees. She had to choose between accepting the full inheritance including the timeshare burden, or disclaiming the entire £45,000.

When multiple beneficiaries inherit a timeshare together, each can disclaim independently. However, if only some disclaim, the remaining beneficiaries become co-owners responsible for the full maintenance fees. The disclaimed portion doesn't disappear—it falls back into the residuary estate.

The beneficiary cannot use the timeshare even once before disclaiming. Taking a holiday at the resort, even if already booked by the deceased, counts as accepting the benefit and prevents disclaimer.

Executor Responsibilities and Personal Liability for Timeshare Fees

Executors face potential personal liability for timeshare maintenance fees if they mishandle estate administration.

Timeshare maintenance fees are creditor claims against the estate. The estate remains liable for debts including ongoing fees until properly resolved. If executors distribute estate assets without paying these fees first, creditors can pursue executors personally for unpaid amounts.

James served as executor of his uncle's estate. Eager to distribute the inheritance quickly, he transferred assets to beneficiaries within four months. Two months later, he received a demand for £3,400 covering 18 months of unpaid timeshare fees. Because the estate had already been distributed, James became personally liable for the entire amount.

Best practices for executors dealing with timeshares:

  • Identify all timeshare ownership during estate asset review
  • Keep maintenance fees current throughout probate
  • Investigate RDO bereavement return policies before distribution
  • Inform beneficiaries about timeshare obligations before they accept inheritance
  • Consider retaining sufficient estate funds to cover fees until timeshare resolved
  • Executors should consult a probate solicitor for complex timeshare situations

Fees accrue monthly during probate. A typical probate process lasting nine months generates nine months of maintenance fees. For a timeshare with £1,200 annual fees, that's £900 in additional estate liability.

Executors have a legal duty to pay estate debts before distributing assets to beneficiaries. Failure to do so creates personal liability up to the value of the estate.

The RDO Exit Policy: Returning Your Timeshare When You Die

The Resort Development Organisation (RDO) is a European timeshare trade association that has implemented a voluntary bereavement exit policy for member developers.

In 2015, RDO updated its Code of Conduct to require that "in the event of the death of a joint owner, the surviving owner can surrender their timeshare if they wish and additionally, the beneficiaries of a will are not obliged to take on the timeshare".

This policy allows surviving spouses and executors to return timeshares to developers when the owner dies, provided all maintenance fees are current.

Critical limitations:

  • The policy is voluntary and advisory, not legally binding
  • Only applies to RDO member developers
  • Developer can refuse return requests
  • All fees must be current up to the date of death
  • Processing can take several months

Patricia, 70, a widow, successfully returned her Spanish timeshare after her husband's death under RDO policy. The process required submitting a death certificate, proof of executorship, and payment of £1,100 in outstanding fees. The entire process took seven months, but the timeshare obligation ended without burdening her children.

To check if your developer is an RDO member, visit the RDO member directory. Success rates vary by developer, with anecdotal reports suggesting 60-70% acceptance for RDO members, though no guarantees exist.

If the developer refuses return, beneficiaries must either accept the inheritance or use the formal disclaimer process. The RDO policy provides an option but not a right.

How to Address Your Timeshare in Your Will

Without explicit instructions, your timeshare falls into your residuary estate by default, potentially burdening unintended beneficiaries.

Option 1: Direct executor to return

"I direct my executor to return my timeshare membership [number] at [Resort Name] to [Developer] and pay outstanding fees from my estate."

Option 2: Specific gift

"I give my timeshare at [Resort Name], membership [X], to [Beneficiary Name]."

Use only if beneficiary wants it and understands fee obligations.

Option 3: Explicit exclusion

"I exclude my timeshare from my estate. I direct my executor to return it to the developer."

Include these details: developer name, resort location, membership number, ownership type, and annual fees. A letter of wishes can provide detailed exit strategy guidance. Like timeshares, other complex assets require special attention in your will to ensure proper handling.

Exit Strategies Before You Die: Ending Your Timeshare Now

The most effective way to protect your family is exiting your timeshare before you die.

Return to developer: Contact your developer directly and request voluntary surrender. RDO members may accept returns. Success rates vary, but the request costs nothing.

Resale: Most timeshares sell for £0-£500 if at all. Use legitimate platforms, avoid upfront fees exceeding £500.

Legal challenge: If mis-sold through high-pressure tactics or misrepresentation, contact Timeshare Consumer Association about contract cancellation.

Exit companies: Costs range from £2,000-£5,000. Andrew, 66, paid £3,200 for successful termination after 14 months. Avoid companies demanding large upfront fees or guaranteeing results.

Weigh exit costs against remaining liability: £1,200 annual fees over 10 years equals £12,000.

The All-or-Nothing Problem: When Timeshare Comes with Other Inheritance

UK law prevents beneficiaries from cherry-picking which parts of a bequest to accept. You take everything or disclaim entirely.

If your will states "I leave my entire estate to my daughter," she cannot accept the house while disclaiming the timeshare. It's all or nothing.

Tom, 29, inherited £65,000 plus a timeshare with £1,400 annual fees. Over 50 years with 5% annual increases, the timeshare would cost £185,000—consuming most of the inheritance.

The solution is strategic will drafting:

"I give my timeshare to my executor to return to the developer. I give the residue of my estate to my daughter."

This isolates the timeshare, leaving other assets free of the burden.

Multiple beneficiaries compound the problem. If three children inherit jointly and one disclaims, the remaining two become co-owners responsible for all fees.

Timeshare Estate Planning Checklist

Complete these steps within 90 days:

  • Locate timeshare contract and determine ownership type (deeded or contractual)
  • Record developer name, membership number, and annual fees
  • Check if developer is RDO member at rdo.org
  • Calculate total remaining liability
  • Contact developer about bereavement exit policy
  • Discuss inheritance with family members
  • Explore exit strategies if unwanted
  • Draft or update will with explicit timeshare instructions
  • Inform executor about timeshare and your wishes
  • Create letter of wishes with exit strategy details

The longer you wait, the more fees accumulate.

Frequently Asked Questions

Q: What happens to my timeshare when I die?

A: Your timeshare becomes part of your estate when you die. If you own it solely, it passes to your beneficiaries according to your will or intestacy rules. If jointly owned, the surviving owner typically assumes full responsibility. The estate remains liable for maintenance fees until the timeshare is transferred or returned to the developer.

Q: Can my children refuse to inherit my timeshare?

A: Yes, beneficiaries can refuse a timeshare inheritance through a formal written disclaimer. Under UK law, the disclaimer must apply to the entire gift and be filed with the estate's grant of probate. The beneficiary cannot have used or benefited from the timeshare before disclaiming. If disclaimed, it falls back into the residuary estate.

Q: Are executors personally liable for timeshare maintenance fees?

A: Executors can be held personally liable for estate debts, including timeshare maintenance fees, up to the value of the estate. If executors distribute the estate while leaving timeshare fees unpaid, creditors may bring claims against them personally. Fees must be paid from the estate until the timeshare is properly disposed of or transferred.

Q: Can I return my timeshare to the developer when I die?

A: Many European timeshare developers who are members of the Resort Development Organisation (RDO) allow timeshares to be returned upon the owner's death, provided all maintenance fees are current. However, this is a voluntary policy, not a legal requirement. Check your specific timeshare contract and contact the developer about their bereavement exit policy.

Q: What's the difference between deeded and contractual timeshares for inheritance?

A: Deeded timeshares (leasehold interests) are considered personal property and automatically form part of your estate to be inherited. Contractual right-to-use timeshares are more complex—UK law suggests the burden of a contract cannot be assigned, so perpetuity clauses requiring inheritance may not be enforceable. The legal position depends on your specific contract type.

Q: Should I include my timeshare in my will?

A: Yes, you should address your timeshare in your will even if you don't want anyone to inherit it. Specify whether you want beneficiaries to inherit it or direct your executor to return it to the developer. Without clear instructions, your timeshare falls into your residuary estate, potentially burdening unintended beneficiaries with maintenance fees and obligations.

Q: How much do timeshare maintenance fees cost in the UK?

A: UK timeshare maintenance fees typically start around £1,000 per year for entry-level ownership but can exceed £5,500 annually for substantial point-based ownership. These fees increase yearly, often above inflation rates. The fees are contractual obligations that must be paid regardless of whether you use the timeshare, making them a significant consideration for estate planning.

Conclusion

Key takeaways:

  • Timeshares become part of your estate when you die, whether solely or jointly owned, and function as liabilities rather than assets for most families
  • Beneficiaries can refuse timeshare inheritance through formal written disclaimer, but this often requires rejecting the entire bequest
  • Executors face personal liability for unpaid maintenance fees if they distribute the estate before resolving timeshare obligations
  • RDO member developers may accept voluntary returns upon death, but this remains a discretionary policy, not a legal right
  • Proper will planning isolates timeshares from other assets, protecting beneficiaries from forced acceptance of unwanted financial burdens
  • The most effective solution is often exiting the timeshare before death through developer return, legal challenge, or professional exit services

Margaret's daughters eventually disclaimed their inheritance, allowing the executor to negotiate a return with the Spanish developer under RDO policy. But the process took 18 months and caused enormous stress during their grief.

If you own a timeshare, don't leave this problem for your loved ones. Address it now—either exit the timeshare before you die, or create a will with crystal-clear instructions for disposal.

Understanding timeshare inheritance rules is just one piece of comprehensive estate planning. Your will should address all your assets and liabilities with clarity.

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  • Intestacy Rules in the UK: Who Inherits If You Die Without a Will?
  • Executor Duties and Responsibilities in the UK
  • How to Include Investment Accounts in Your Will

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

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