Death and Long Term Timeshare Contracts

Posted on April 30, 2025

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Apart from the USA, the concept of the “perpetuity” contract has for the most part disappeared, that said, current EU legislation still permits timeshare long term ownership contracts to run for extremely long terms, which in many cases will mean that the owner(s) may well pass away with many years left to run, in this case the timeshare becomes an asset (sic) of the estate and will be distributed in accordance with the terms of will to the nominated beneficiaries. This will present problems especially if the timeshare is unwanted by the recipients of the bequest.

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Can I Refuse to Accept a Willed Timeshare?

Under current UK legislation it is not possible to pick and choose which part of a bequest you wish to take, it’s an all or nothing situation. In the example of a four beneficiary will, each beneficiary would become co owners of the timeshare and as such be liable for the ongoing costs associated with ownership just as if they had purchased it themselves.

If the timeshare is willed as a single asset, which stands apart from the other assets willed to the beneficiaries, then it would be possible to refuse the timeshare, the problem here is if the executors of the will cannot transfer the asset to a beneficiary then it remains in the estate of the deceased, in which case the estate will have to bear the ongoing costs.

An executor can be held personally liable for the debts of the estate up to the value of the estate. If they distribute the estate and leave a creditor outstanding, that creditor may bring a claim against the executors. This is the case even where the executor had no idea the debt even existed. Unknown debts are one of the greatest dangers to executors.

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Can a Deed of Variation Work?

Firstly we need to explain what is a deed of variation? A deed of variation is a document that allows the beneficiaries named in the Will to change the distribution of the estate. For example, it can allow for a beneficiary to reduce their share in order to give it to someone who did not inherit. A deed of variation may only be executed after the death of the testator. In theory using a deed of variation could allow the beneficiaries to single out the timeshare and pass it on to someone else, the problem here is who? Given that a timeshare is more of a liability than an asset who in their right mind would take it. Another issue is that the new beneficiary, under the deed of variation, does not have an obligation to accept the bequest. If you are considering a deed of variation back to the resort, the resort can, and probably will, refuse it.

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How About Charities?

We are afraid not. Most UK charities are crying out for bequests in order to maintain funding for the sterling work they do, however, bequeathing a timeshare to a charity is today considered a liability rather than an asset. With most timeshares having a near zero value coupled with the requirement to pay annual maintenance fees, you can easily see the rationale for the decision not to accept them.

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What Can Be Done?

Without appearing too morbid, when one is sorting out their financial affairs, timeshare should take a high priority position. It may well be that sons and daughters, nieces and nephews may delight in owning your timeshare, having said that if they are in possession of the full facts, we doubt that.

Realistically, terminating the contract and exiting the timeshare ownership before your demise is the safest advice.

It must be remembered that resorts and management groups are loathed to allow you to exit ownership, especially if it is a long term contract, up to 50 years of annual maintenance payments is worth a considerable sum and with new sales being at some of the lowest levels in recent history. Unlike the non value of your ownership, you are a definite asset to the resort!

In all but a few cases it can be quite complex to rid yourself of your timeshare but not impossible. There are a number of highly reputable companies who offer a service specifically to get rid of unwanted timeshare. It should be remembered that their services will have a cost that is normally payable at the beginning of the process. Despite the fee payable, peace of mind is achieved in the knowledge that you will not be burdening either your beneficiaries or your estate with what effectively is a millstone around their necks.

Should this be something that you would like to discuss further we would be delighted to hear from you and also point you in the right direction if you wish to find a solution to this problem.

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TCA Comment

Death is certain, maintenance fees are certain, and in the case of timeshare, both share a common trait — they are both unavoidable. For too long, timeshare contracts have been constructed in a way that benefits only the developer. The concept of perpetuity ownership is an anachronism in a modern consumer landscape. Whilst the UK and EU have made strides in reducing the duration of timeshare contracts, the USA lags behind, leaving many owners and their families exposed.

Our advice remains clear: do not leave the timeshare problem to your family to sort out. Take action now, seek reputable help to exit your contract, and spare your loved ones from inheriting a financial burden they neither want nor asked for.