Inheriting a timeshare is often more of a financial burden than a gift. As an executor in Ontario, you should never pay timeshare maintenance fees out of your own pocket. You must formally notify the resort of the death and attempt to surrender, sell, or refuse the timeshare contract to protect the estate’s main assets.
When a loved one passes away, going through their paperwork often uncovers surprises. One of the most frustrating discoveries for an executor in Ontario is a timeshare contract. Whether the deceased owned a sunny week in Florida, a ski lodge in British Columbia, or a lakeside retreat in Muskoka, that property comes with a massive headache: annual maintenance fees. These fees do not magically stop when the owner dies; the timeshare company will continue to demand payment, often aggressively.
For an Estate Trustee (executor) living in Toronto, Mississauga, or Kingston, dealing with a timeshare located in another country or province is a logistical nightmare. 📜 Many beneficiaries outright refuse to take over the timeshare because they do not want to be trapped by the rising yearly costs. Your job is to dispose of this contract without allowing the timeshare company to drain the estate’s bank accounts. In this guide, we will provide a step-by-step strategy for handling an inherited timeshare. If the resort threatens legal action, seeking help from a probate lawyer in our directory is highly recommended.
Step-by-Step Process: Managing a Timeshare in an Ontario Estate
Timeshare companies intentionally make it difficult to cancel a contract. You must act methodically and keep a strict paper trail of all communications to protect the estate from endless fee collection.
Step 1: Locate and Review the Timeshare Contract
📄 The first step is to figure out exactly what the deceased owned. Dig through their files for the original purchase agreement. You need to determine if the timeshare is a “Deeded Property” (meaning they actually owned a tiny piece of real estate) or a “Right-to-Use” contract (which is basically a long-term lease or a points-based club membership). Deeded properties are much harder to get rid of because they require a formal transfer of the deed.
Step 2: Notify the Resort and Freeze Payments
Send a formal letter via registered mail to the timeshare management company, including a copy of the Death Certificate. Inform them that the owner has passed away and the estate is currently being administered in Ontario. **Crucially, stop paying the maintenance fees with your personal credit card.** If you pay with your own money, the resort may try to argue that you have personally assumed the contract. Only use estate funds, and even then, consult a lawyer before making any further payments.
Step 3: Ask Beneficiaries to Sign a Disclaimer
Check the Will. If the timeshare is left to a specific child, or falls into the residue of the estate, ask the beneficiaries if they actually want it. If they do not, they must sign a formal “Disclaimer” or refusal. This legal document proves that the heirs are explicitly rejecting the inheritance, meaning the timeshare company cannot try to force the children to take over the contract.
Step 4: Attempt a “Deedback” or Surrender
Contact the resort and ask if they have a “Deedback” or surrender programme. 🤝 Many reputable timeshare companies will take the property back for free, or for a small administrative fee, especially upon the death of the owner. They realize that fighting a foreign estate for maintenance fees is too costly. Request their surrender paperwork and have an Ontario estate lawyer review it before you sign anything as the executor.
Step 5: Try to Sell or Give It Away
If the resort refuses to take it back, try to sell it on the secondary market for $1. Yes, one dollar. Websites like the Timeshare Users Group (TUG) allow people to list their timeshares for free to anyone willing to take over the maintenance fees. If you find a taker, the estate pays the transfer fees just to be free of the burden.
Step 6: The “Walk Away” Strategy
If the timeshare is worthless, the resort won’t take it back, and no one will buy it, your lawyer may advise the estate to simply walk away. You notify the resort that the estate will make no further payments and they can foreclose on the property. While this ruins the deceased’s credit rating (which no longer matters), it protects the beneficiaries. However, this is risky if the estate has other assets in the same jurisdiction as the timeshare, so legal advice is mandatory.
How Much Does it Cost to Exit a Timeshare?
Getting rid of a timeshare usually requires spending some of the estate’s money to stop the financial bleeding:
- Deedback Fees: If the resort agrees to take it back, they typically charge an administrative fee of $500 to $1,500 CAD.
- Transfer Fees: If you sell it or give it away, the resort will charge a transfer fee, usually between $300 and $1,000 CAD.
- Lawyer Fees in CAD: Consulting an estate lawyer to draft a disclaimer or review surrender documents will cost between $300 and $700 CAD.
- Timeshare Exit Scams: **Beware!** Never pay an upfront fee of $5,000+ to a “Timeshare Exit Company.” Most of these are scams that take your money and do nothing. Always use a licensed lawyer.
| Deedback to Resort | $500 – $1,500 CAD | High (If the resort allows it) |
| Give Away for $1 | $300 – $1,000 CAD (Transfer Fee) | Medium (Must find a willing buyer) |
| Foreclosure / Walk Away | $0 CAD | Last resort (Requires legal guidance) |
How Long Does the Process Take?
⌖ Disposing of a timeshare requires immense patience. Negotiating a deedback with a resort typically takes 3 to 6 months of back-and-forth paperwork. If you attempt to sell it or give it away on the secondary market, it can easily take 6 to 12 months to find someone willing to take over the maintenance fees. Do not distribute the final estate funds to the beneficiaries until the timeshare is fully resolved.
Frequently Asked Questions (FAQ)
Can the timeshare company sue me personally for unpaid fees?
No, provided you never signed the original contract or used your personal funds to pay the maintenance fees after the death. The debt belongs to the estate, not to the executor or the children personally.
Should we use the timeshare for one last family vacation?
Absolutely not. Using the timeshare after the owner’s death can be legally interpreted as accepting the inheritance and assuming the contract. If you want to get rid of it, do not step foot on the property.
Does a foreign timeshare go through Ontario probate?
If the timeshare is a “Deeded Property” located outside of Ontario (like Florida), it is considered foreign real estate. Your Ontario Certificate of Appointment of Estate Trustee will not work there. You may have to hire a foreign lawyer to do an “ancillary probate” just to transfer the deed.
What if the timeshare company sends the debt to a collection agency?
Collection agencies rely on intimidation. If they call, calmly inform them that the owner is deceased, provide the estate lawyer’s contact information, and tell them to file a formal creditor claim against the estate. Do not let them bully you into paying personally.
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