Jan 7, 2026
Around 10 million U.S. households own at least one timeshare, according to the American Resort Development Association (ARDA) (1). While the prospect of part-owning a vacation home can be exciting for a lot of families, there are also a number of downsides.
Cara and her parents recently discovered this. They bought into a timeshare when Cara and her siblings were teens. Now that they’ve grown up, her parents want out of their timeshare, but have hit several obstacles.
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They owe $30,000 in back fees and are working with a lawyer to try to get out of their contract. Cara’s mother told her that the contract was signed “in perpetuity”, meaning their estate will continue to owe payments even after they die, and ownership of the timeshare will pass to Cara and her siblings.
Cara doesn’t believe this is possible, but she’s not familiar with the law. Here’s what she (and her parents) need to know about timeshares.
How timeshares work
A timeshare is a vacation property that a group of buyers collectively owns the rights to use at set time periods. Timeshares are popular because they’re more affordable than owning a property outright.
However, there are certain disadvantages to owning them, including difficulty accessing the property outside of the allotted schedule.
Most timeshares are either booked in advance or, in the case of a timeshare in a resort facility, a points system may be used to book properties across a company’s portfolio of vacation choices.
Some of the downsides of buying into a timeshare include:
- Ongoing costs including maintenance fees, which often increase yearly and can surpass the price of an annual vacation.
- Most timeshares offer a fixed week or are on a first-come, first-served basis, so you may not be able to use them when you want.
- A timeshare contract is binding, so it’s not easy to walk away from your obligation even if your personal or financial circumstances change.
- Timeshares are hard to resell, and often make a poor investment.
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What you should know before buying into a timeshare
Cara believes that her parents were duped into purchasing their timeshare without a full understanding of their commitments. This, unfortunately, is not uncommon.
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The timeshare industry is notorious for its aggressive marketing practices, luring buyers into impulse purchases with tactics like free event tickets and complimentary hotel accommodations (2), according to the Federal Trade Commission (FTC).
They offer limited-time deals and other high-pressure approaches in order to get buyers to sign, and can often gloss over details of the contract that might give the average buyer pause.
Salespeople can exaggerate the potential benefits of owning a timeshare without detailing the full costs, and this market is rife with gray areas and questionable business practices.
This may be how Cara’s parents ended up in their current predicament. However, Cara’s mom isn’t exactly right in claiming that she and her siblings will own her parents’ interest in the timeshare and be on the hook for their overdue fees after they die.
Can your heirs inherit your debt?
Most debt cannot be inherited. Instead, it passes to the person’s estate after they die.
During probate, which is the process of administering a deceased person's will, the person named executor of the estate is in charge of paying off debts using the estate’s assets. This typically has to happen before any other funds are distributed to named heirs.
If the estate is insolvent, meaning there isn’t enough funds to pay off outstanding debts, creditors cannot collect what is owed.
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Generally, the only exception where a person can “inherit” their parents’ debt is if they were a co-signer on a loan (making the debt partly theirs). Moreover, in rare cases, a few states have filial responsibility laws that can make adult children responsible for covering their parents’ long-term costs.
Cara’s parents are worried that the fees they owe will substantially cut into their estate and children’s inheritances when they die.
One potential way around that is if they put their assets into an asset protection trust for their children. Moreover, in the event that Cara and her siblings do inherit the interest in the timeshare, it is possible for them to disclaim the inheritance.
There are also law firms that specialize in dealing with timeshares because of the difficult and shady contracts that often accompany them.
Cara’s parents should try to deal with their back fees and buy themselves out of their membership on the advice of a legal professional to ensure they are no longer bound by the contract with their timeshare company when they die.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
ARDA (1); Federal Trade Commission (FTC) (2).
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
