What Happens to a Timeshare During Probate in North Carolina?

Probate Questions 13 min read

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Your parent has passed away and somewhere in the pile of paperwork is a timeshare agreement. Maybe they loved it and used it every year. Maybe they bought it twenty years ago on a vacation and could never figure out how to get rid of it. Either way, it is now part of the estate, and you need to know what happens to it.

The honest answer is that timeshares are one of the more frustrating assets to deal with during probate. Unlike a house that has clear market value, or a bank account with a definite balance, a timeshare often has negligible resale value while carrying significant ongoing maintenance fees. The estate, and potentially the heirs, must deal with it one way or another.

Afterpath helps NC executors manage every type of estate asset, including the complicated ones like timeshares. Our Pathfinder AI guide explains your specific obligations and options, our task management system tracks timeshare-related deadlines and fees, and our NC Compliance Engine ensures the asset is properly accounted for in the estate inventory. You do not have to figure out timeshare probate on your own.

Timeshare as an Estate Asset: What Type of Property Is It?

The first thing to understand is what kind of legal interest the timeshare represents, because this affects how it passes through probate.

Deeded Timeshares (Real Property Interest)

Many timeshares, particularly older ones and those at fixed-location resorts, are deeded interests. This means the deceased owned a fractional real property interest in a specific unit or resort. The deed is recorded in the county where the property is located, and the ownership interest is treated like any other real estate.

For probate purposes, a deeded timeshare:

Must be included in the estate inventory
Passes according to the will (if there is one) or NC intestate succession laws (if there is not)
May require ancillary probate if the timeshare property is located in another state (which is very common, since many NC residents own timeshares in Florida, South Carolina, or other vacation states)
Must be transferred via a new deed to the heir or buyer

Right-to-Use Timeshares (Contract Interest)

Newer timeshares and points-based systems are often right-to-use (RTU) interests. The owner does not hold a deed to real property. Instead, they hold a contractual right to use resort accommodations for a specified period of time (often 20-50 years, or sometimes in perpetuity).

For probate purposes, an RTU timeshare:

Is treated as personal property (a contract right), not real property
Must still be included in the estate inventory
Passes according to the will or intestate succession
Is transferred by notifying the resort management company and following their transfer procedures
May have specific contract terms about what happens upon the owner’s death

How to Determine Which Type You Have

Check the original timeshare documents. If there is a recorded deed, it is a deeded interest. If the documents describe a “membership,” “license,” “right to use,” or “points program,” it is likely an RTU interest. If you cannot find the documents, contact the resort’s owner services department and ask them to clarify the ownership structure.

The Immediate Problem: Ongoing Maintenance Fees

Regardless of whether the timeshare is deeded or RTU, it almost certainly carries annual maintenance fees that continue accruing after the owner’s death. These fees typically range from $500 to $2,000 per year (and sometimes much more for premium properties), and the resort will continue billing the estate.

Is the Estate Responsible for Maintenance Fees?

Yes. The estate is responsible for maintenance fees that accrue during the administration period. These are debts of the estate, and the executor must account for them.

However, the executor should evaluate whether paying these fees is in the estate’s best interest. If the timeshare has no realistic resale value and the heirs do not want it, paying thousands of dollars in maintenance fees while trying to dispose of the asset may waste estate funds.

Can the Resort Foreclose for Unpaid Fees?

For deeded timeshares, yes. Most timeshare deeds and resort covenants give the resort the right to foreclose on the interest if maintenance fees go unpaid. For RTU timeshares, the resort can typically terminate the membership for nonpayment.

In some cases, allowing foreclosure or termination may actually be the most practical option for the estate. More on this below.

Can Heirs Refuse to Inherit the Timeshare?

This is one of the most common questions executors and heirs ask, and the answer is nuanced.

Disclaiming the Timeshare

Under NC G.S. 31B-1 (the NC Uniform Disclaimer of Property Interests Act), a beneficiary can disclaim (formally refuse) any inheritance, including a timeshare interest. A valid disclaimer must be:

In writing
Signed by the disclaiming party
Filed within 9 months of the decedent’s death (or within 9 months of the date the beneficiary turns 21, if a minor)
Delivered to the executor or personal representative

When a beneficiary disclaims a timeshare, they are treated as if they predeceased the owner. The timeshare then passes to the next person in line under the will or intestate succession. If all potential heirs disclaim, the timeshare remains in the estate and the executor must dispose of it.

The Practical Limitation

Here is the catch: disclaiming a timeshare does not make it disappear. It simply changes who is responsible for it. If one heir disclaims, another heir inherits the obligation. If all heirs disclaim, the estate must still deal with it. And if the estate is closed before the timeshare is properly disposed of, the obligation may follow the heirs regardless.

The resort management company will continue pursuing someone for the maintenance fees. A disclaimer does not release the estate from its existing obligations; it only determines which individual does not inherit the interest going forward.

Options for Disposing of the Timeshare

The executor has several options for dealing with the timeshare during probate, ranging from ideal to last resort.

Option 1: Transfer to an Heir Who Wants It

If one of the heirs actually wants the timeshare (perhaps they have fond memories of the resort, or they travel frequently and would use it), the simplest path is to transfer it directly.

For a deeded timeshare:

Prepare a new deed transferring the interest from the estate to the heir
Record the deed in the county where the timeshare is located
Notify the resort management company of the ownership change
The heir assumes responsibility for future maintenance fees

For an RTU timeshare:

Contact the resort’s owner services department
Complete their transfer paperwork
The heir becomes the new member and assumes all future obligations

Most resorts charge a transfer fee (typically $100 to $500) for processing ownership changes.

Option 2: Sell the Timeshare

Selling a timeshare during probate is legal and follows the same general process as selling any estate asset. However, the reality of the timeshare resale market is sobering.

The resale market is extremely difficult. Most timeshares sell for a fraction of their original purchase price, and many cannot be sold at all. A timeshare purchased for $20,000 may be worth $1,000 to $3,000 on the resale market, and some are effectively worth nothing.

If you pursue a sale:

Avoid timeshare resale scams. The timeshare industry is plagued by companies that charge upfront fees ($1,000 to $5,000) to “list” or “market” the timeshare, with no guarantee of a sale. Many of these are outright scams.
Check legitimate resale platforms. Websites like RedWeek, Timeshare Users Group (TUG), and eBay are where actual timeshare resales happen. Prices will be low but the platforms are legitimate.
Contact the resort directly. Some resorts have deed-back or resale programs where they will buy back the timeshare (usually for very little) or help facilitate a transfer to another buyer.
Consider donating it. Some charities accept timeshare donations, which may provide the estate with a tax deduction. Verify the charity is legitimate and that the donation qualifies for a deduction before proceeding.

Option 3: Deed-Back or Surrender to the Resort

Many resorts now offer deed-back programs (sometimes called “exit programs” or “legacy programs”) that allow owners to return their timeshare to the resort. This is increasingly common because resorts have realized that pursuing elderly or deceased owners for maintenance fees is costly and generates negative publicity.

Contact the resort’s owner services department and ask specifically about:

Deed-back or voluntary surrender programs
Whether the estate qualifies (some programs have conditions)
Whether any fees are required to process the surrender
Whether the surrender releases the estate from all future obligations

If the resort accepts the deed-back, this is often the cleanest solution. The estate is relieved of the asset and the ongoing fees, and the process can usually be completed in 30 to 90 days.

Option 4: Timeshare Exit Companies

A large industry of “timeshare exit companies” has emerged, promising to get owners out of their timeshare obligations for fees ranging from $3,000 to $10,000 or more. These companies vary enormously in legitimacy and effectiveness.

Proceed with extreme caution. Many timeshare exit companies:

Charge large upfront fees with no guarantee of results
Simply stop paying maintenance fees on your behalf and wait for the resort to foreclose (which you could do yourself for free)
Make promises they cannot keep
Have been the subject of state attorney general enforcement actions

If you do consider a timeshare exit company, check their BBB rating, read reviews on independent sites, verify they are not the subject of regulatory actions, and never pay a large upfront fee before results are delivered.

Option 5: Stop Paying and Allow Foreclosure

This is the last resort, but for timeshares with no resale value and no deed-back option, it may be the most practical choice.

If the estate simply stops paying maintenance fees:

The resort will send collection notices
After a period (typically 6 to 18 months of nonpayment), the resort will initiate foreclosure (for deeded interests) or terminate the membership (for RTU interests)
The estate loses the timeshare interest
The resort may report the unpaid fees to credit bureaus, but this affects the deceased’s credit, not the heirs’ personal credit
The resort may pursue the estate for the unpaid fees as a debt

Important consideration: If the estate has other assets, allowing foreclosure does not eliminate the debt. The resort can file a creditor claim against the estate for unpaid maintenance fees. The executor must weigh this debt against other estate obligations using the NC priority of claims.

NC-Specific Considerations

Ancillary Probate

Most NC residents who own timeshares own them in other states – Florida, South Carolina, Hawaii, Colorado, and Mexico are common locations. If the timeshare is a deeded interest in another state, the estate may need to open ancillary probate in that state to transfer or sell the property.

Ancillary probate adds cost and time to the estate administration. Filing fees, out-of-state attorney fees, and additional court proceedings can add $1,000 to $5,000 or more to the estate’s expenses.

For RTU timeshares, ancillary probate is generally not required because the interest is personal property, not real property. The transfer is handled through the resort’s administrative process.

Estate Inventory and Valuation

The executor must include the timeshare in the estate inventory filed with the Clerk of Superior Court. For valuation purposes, the timeshare should be listed at its fair market value, which for most timeshares is the current resale market value (often far below the original purchase price).

Getting an accurate valuation can be tricky. Check current listings on resale platforms for comparable units at the same resort. If the timeshare has no resale value, it may be appropriate to list it at $0 or a nominal value with a note explaining the lack of market demand.

Impact on Estate Solvency

If the estate is close to insolvent, the ongoing maintenance fee obligations from a timeshare can push it over the edge. The executor should calculate the total cost of maintaining the timeshare during probate (including fees that will accrue during administration) and factor this into the estate’s overall debt picture.

For more on handling estates where debts are a concern, see our guide on how to probate a will in North Carolina.

Frequently Asked Questions

Do timeshare maintenance fees stop when the owner dies?

No. Maintenance fees continue to accrue regardless of the owner’s death. The estate is responsible for fees during the administration period. The resort will pursue the estate for unpaid fees as a creditor claim.

Can the executor just ignore the timeshare?

No. The executor has a duty to account for all estate assets, including the timeshare. Ignoring it does not eliminate the obligation. The resort will eventually pursue collection, and the executor could face liability for failing to properly administer the asset.

What if the timeshare is in another country (like Mexico)?

International timeshares add significant complexity. Mexican timeshares are often RTU interests governed by Mexican law, and the transfer process requires compliance with both US estate law and Mexican property regulations. An attorney experienced in international timeshare transfers may be needed.

Can maintenance fee debt be passed to the heirs personally?

Generally no. The maintenance fees are a debt of the estate, not the heirs personally. However, if an heir accepts the transfer of the timeshare, they assume responsibility for all future fees from that point forward. Heirs are not personally liable for fees that accrued before they accepted the transfer.

Is a timeshare worth fighting over in the estate?

Rarely. Most timeshares have minimal resale value and carry significant ongoing costs. If multiple heirs want the timeshare because they use it, a transfer makes sense. But as an investment or inheritance of value, timeshares are almost always a depreciating or negative-value asset. The executor’s goal should be to dispose of it as efficiently as possible to avoid draining the estate.

Related Resources

Complete Guide to Probate in North Carolina – Overview of the full NC probate process
Real Estate in Probate in NC – How real property is handled during estate administration
NC Executor Duties Checklist – Complete list of executor responsibilities
Dealing With Creditors During Probate in NC – Managing estate debts and creditor claims
Selling a House in Probate in NC – Process for selling real property during probate

Moving Forward

Timeshares are rarely the most valuable asset in an estate, but they can be one of the most annoying to deal with. The ongoing fees, the difficult resale market, the potential need for out-of-state probate, and the emotional weight of a parent’s vacation memories all combine to make this a uniquely frustrating probate task.

The key is to act quickly. Every month you delay is another month of maintenance fees accruing against the estate. Evaluate your options (transfer, sell, deed-back, or surrender), choose the most practical path, and execute it.

Afterpath helps executors manage every asset in the estate, including the ones nobody wants. Our task system tracks timeshare-related deadlines and fees, our Pathfinder AI answers your specific questions about disposal options, and our Professional Marketplace can connect you with attorneys who handle timeshare transfers and dispositions.

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