TimeSharing Today Page 12 May / Jun , 2018
Beneficial trust
With a club , you don ’ t actually own the real estate yourself . All the deeds are typically owned by a trust administered by a trustee for the benefit of the club members . Since the individual club members don ’ t own real estate , the members don ’ t need to be concerned with real-estate transfer laws .
Membership in vacation clubs is generally governed by each club ’ s rules . It ’ s like having a membership at a gym . The gym owns the facility and the machines ; your membership fees give you the right to use the facility and the machines .
So , if you own points in a vacation club , you rarely have an estateplanning issue . Your club membership commonly terminates when you pass away . If you owed the club money at the time you passed on , a claim may be lodged against your estate . Some clubs may have ways for heirs to access and redeem a deceased owner ’ s paid-for but unused points . Those rules are unique to each club .
Find out from your vacation club what happens when a member passes away . Get the answer in writing and keep it with your will and other important papers .
Do heirs a good deed
If you own a deeded timeshare , make arrangements before you pass away . Failure to do so can result in your heirs being stuck with a $ 2,000 + legal expense or , worse , getting named in a foreclosure lawsuit .
It ’ s also a headache for your resort and can result in lengthy and expensive problems with closing your estate . Don ’ t leave your kids a costly mess to clear up .
Regardless of whether you own a deeded week or points in a club , tell your heirs about your timeshare . If you don ’ t , your estate may be closed before the timeshare issue is addressed . This could be very bad news for your heirs .
Fifty little countries
We like to think we live in one big country called the United States of
You are our business .
We excel at timeshare management , sales and rental . But long term relationships with our owners , based on communication and trust , are the foundation of our success .
If accountability , quality and cost containment are important to you – call us . With over 20 years experience , chances are we can help .
20 Executive Park Road Hilton Head Island , South Carolina 29928 888-433-4762 x-11113 jnahman @ hiltonheadusa . com Resort Management
America . We don ’ t . We live in 50 little countries with names such as California , Florida , Nevada , and North Carolina .
In real-estate and estate-planning law , each state is its own little country , with its own set of laws that sync well with the other little countries .
For most assets , this is not a significant problem . A thousand dollars in a Bank of America checking account is the same whether you live in Detroit or Durham , and 100 shares of Disney stock in your Individual Retirement Account is the same whether you live in Bellingham or Birmingham .
A different animal
Real estate is a different animal . Remember the old “ sell you the Brooklyn Bridge ” scam ? How do you find out who really owns a piece of real estate , and if any liens , mortgages , or easements are attached to that property ?
If I ’ m interested in buying your house in Chicago , IL , am I going to search records in Orlando , FL , to find out if you are the real owner ? Of course not . So if you live in Chicago but own a timeshare in Orlando , where would people look to find out about that timeshare ? They would look where the real estate is located , in Orlando — not in Chicago .
This can be problematic for owners whose ownership circumstances have changed . Say you were married when you bought your timeshare . You and your spouse are listed on the deed as “ husband and wife .” That deed is recorded in the public records of the county where your real estate is located .
Later you divorce . The wife wants the timeshare . The husband doesn ’ t . The divorce judge in Chicago writes into the divorce decree that the wife gets the timeshare and the husband gives up all interest . Then the wife notifies the timeshare to send her the bills at her new address .
For the next couple of years , the now ex-wife pays the maintenance fees while the ex-husband pays nothing . The ex-wife later decides to deed the week to her sister . She signs a proper deed and records it in the public records where the timeshare is located .
Who owns the week ? The exhusband and the sister , because the exhusband was never properly removed from the deed .
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