A client from Westchester called me recently. Her father had passed, and as the executor of his estate, she was cataloging his assets. Tucked inside a folder of financial documents was a deed for a timeshare in Florida, purchased in the late 1990s. With it were notices for overdue maintenance fees already totaling several thousand dollars. Her question was simple: “Do my brother and I have to accept this? It feels more like a debt than a gift.”
She was right to be concerned. In my practice, I’ve seen this scenario play out many times. A timeshare is not a simple asset like a bank account or a portfolio of stocks. It is an ongoing contractual obligation that carries a perpetual duty to pay fees. For many beneficiaries, inheriting a timeshare means inheriting a financial burden they neither want nor can afford.
Fortunately, New York law does not obligate you to accept an unwanted inheritance. There is a formal mechanism for refusal.
An Asset That Behaves Like a Liability
The core issue with a timeshare is that its obligations often far outweigh its value. The resale market for most timeshares is notoriously poor, making the asset illiquid. Meanwhile, the maintenance fees—covering upkeep, taxes, and management—are due every year without fail and tend to increase over time.
When a beneficiary inherits a timeshare, they inherit that entire bundle of rights and responsibilities. Accepting the property makes them personally liable for all future fees. If they fail to pay, the timeshare association can report them to credit bureaus, pursue collections, and ultimately foreclose. It’s a financial trap that can follow a family for years. A liability.
For an executor, the fiduciary duty is to act in the best interest of the estate and its beneficiaries. Distributing an asset that will immediately drain a beneficiary’s finances is rarely a prudent course of action. This is where a deliberate refusal becomes a critical tool of stewardship.
The Legal Path to Refusal: Renunciation
You cannot simply “throw away” an inheritance. To formally refuse property left to you in a will or trust, you must execute a legal document known as a renunciation or a disclaimer. This is a written statement declaring your irrevocable and unqualified refusal to accept the property.
In New York, this process is governed by Estates, Powers and Trusts Law (EPTL) § 2-1.11. To be effective, the renunciation must be in writing, signed and acknowledged by the person renouncing, and filed with the clerk of the Surrogate’s Court within nine months of the decedent’s death. A copy must also be delivered to the executor or trustee administering the estate.
This nine-month deadline is critical. Failing to act within this window can be interpreted as acceptance of the asset, leaving the beneficiary responsible for the timeshare and its costs. While the court can grant an extension for “reasonable cause,” relying on that possibility is not a sound strategy.
What Happens After You Say No?
When a beneficiary properly renounces a timeshare, the law treats them as if they had predeceased the person who left them the inheritance. The timeshare then passes to the next person in line according to the will—a contingent beneficiary, for example. If that person also renounces it, it continues down the line of succession.
If all named beneficiaries refuse the asset, the timeshare falls into the residuary of the estate—the pool of assets left over after all specific gifts have been made. The executor is then responsible for dealing with it. The executor might try to sell it, though this is often unsuccessful. They might also attempt to negotiate a “deed in lieu of foreclosure” with the timeshare company, effectively giving the property back.
If no other option exists, the estate may have to stop paying the fees and allow the timeshare company to foreclose. While this can impact the estate’s final value, it shields the individual beneficiaries from any personal, long-term liability. It contains the problem within the estate, which is the intended outcome of a well-executed renunciation.
If you are an executor or beneficiary dealing with a potentially burdensome asset like a timeshare, the first step is a clear-eyed assessment of the property’s contract and the decedent’s will. We can schedule a review of these specific documents to help you understand the estate’s obligations and the options available to you.
