posted 7th April 2025
Can You Inherit Timeshare Debt?
In the UK, debts aren't automatically inherited. However, estate liabilities, like outstanding maintenance fees, are paid out of the deceased's estate before any assets are passed on to heirs.
If a loved one passes away with an active timeshare agreement and unpaid fees:
- The debt does not transfer directly to you unless you choose to accept the inheritance.
- If you accept the estate (including the timeshare), you will likely accept the liabilities.
- Executors must settle debts from the estate before distributing assets.
The key takeaway: timeshare obligations can diminish what your heirs ultimately inherit or create unwanted legal burdens if the estate isn't handled correctly.
What to Consider in Estate Planning
If you own a timeshare, here are practical steps you can take:
1. Review the Contract
Timeshare agreements vary widely. Some are structured as leaseholds, others as memberships. We can help you assess:
- Whether the agreement is legally binding for your heirs
- If there’s a right of survivorship
- Whether the company allows relinquishment or resale
2. Talk to Us
- Our timeshare expertise can often negotiate relinquishment or offer pathways to exit programs. This may help reduce or remove ongoing obligations altogether—before they become someone else’s problem.
