Timeshares Plummet in Value, Timeshare Owners Still Need to Avoid Probate
Timeshares are an investment. Owners who want their loved ones to inherit the timeshare need to plan ahead to avoid probate. Ideally, ownership should be in the name of trust. But if the owner does not have a trust, joint tenancy is an option. To create a joint tenancy, the owner adds another person on title as a joint tenant. The person added is the heir to receive the timeshare on the death of the original owner. In joint tenancy the person who dies has her or her ownership interest disappear and the survivor is the sole owner.
Normally adding a joint tenant is not a good idea. The joint tenant’s creditors and spouse have access to the property and the cooperation of the new joint tenant is needed for any sales or borrowing. As a result, the owner gives up control. But because of timeshare’s limited marketability, low dollar value and minimal loan collateral value; the risk of loss of control may be outweighed by the ease of transfer.
How to avoid probate of a timeshare
1. Prepare a quit claim deed to transfer ownership into a trust or joint tenancy
2. Record the deed with the county or bureau of conveyances
3. Present the recorded deed to resort management for update of their records.
1. Determine the precise legal description of the time share, including parcel number, internal control number, map, block and lot number
2. Determine the tax identification number of the time share
3. Determine how title is held
4. Prepare the quit claim deed
5. prepare transfer documents required by the County Recorder
6. File the deed with the County Recorder's Office
7. Return the deed with proof of filing
What is so bad about probate?
Probate is the process of after death transfer of assets and payment of debts under the supervision of a Civil Court. The process takes about one year, is costly and is open to the public. Major procedures in the probate process are:
1. File petition with the Probate Court
2. Provide notice to all heirs and beneficiaries
3. Publish in local newspaper public notice of petition
4. Attend court hearing and obtain letters of authority
5. Marshall assets
6. Prepare inventory and appraisal
7. Notice third party creditors, pay or deny creditor's claims and if necessary sell assets
8. Report and account for assets to the court and obtain approval of the court for all actions taken by the personal representative
9. File ex parte petition for final discharge and order to close probate
All these steps can be avoided if the time share is titled in a trust or joint tenancy.
But if the owner has already died, there may be an alternative to probate for California timeshares. A procedure known as Affidavit Re Real Property of Small Value.
For more information, please contact Mark@DeedAndRecord.com or call 949-474-0961.