Has Anyone Set Up A Living Trust For their timeshare Property?

[tennisWalt Super Moderator Find all posts View Profile Close tennisWalt]

There is an article in the Mar/April 2007 issue of TimeSharing Today about setting up a revocable living trust for your Timeshare Property.

What do you think about creating a revocable Living Trust for your timeshare weeks?

Is there a better way of passing on your timeshare property to your kids?

Walt

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

I set up one. The purpose is not for TS property. I do that because I have minor kids. But since I have it set up, I use it to buy TS and try to transfer existing one into it to avoid probate. Transfer is painful, it costs a great % consider most TS I own really not worth that much (in dallor amount). But the way I understand is if I die and these TS is not in a joint ownership or trust or for very few states a Beneficiary deed, then for every TS, it has to go to the reside state to do a probate. And the cost is based on the total estate. So it looks O.K. But still very painful to work on these paper work.

But I am still trying to figure is it right or wrong to put something in a Trust, and if my kids don't want it, what can the then trustee do. And if they like it, how can I write something to distribute between them so they will not hate each other. And what will be the potential liability if the stuff is in the trust after I die and it become irrevocable.

Jya-Ning

[Jimbo Senior Member Find all posts View Profile Close Jimbo]

Revocable Living Trust

I have considered before doing a trust and was interested in those that have done so. Owning multiple TS's it would seem to me that it would best to put it all in a trust.

I'd love to hear the answer, too. thanxxx Walt for asking the question.

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

Great topic and I would like to know as well. We are just about to set up trust as we have young kids...one of those items we keep putting off.

We just bought another timeshare and I hate to pay for closing and then go through it all over again to put it into the trust. Plus what about when/if I sell it...how much of a hassle is it to sell it out of the trust?

All the paperwork and cost associated for my timeshare portfolio of eight timeshares sure seems like a hassle. But will it really help if/when we die?

[JoAnn Senior Member Find all posts View Profile Close JoAnn]

We have our timeshares in our revocable trust. The attorney's did a quit claim deed on all and sent them off to the proper counties in the right states. There was a charge, but only a few $$ each.

One thing I just learned...when you decide to sell a t/s you must use the 'newest' deed. i.e. the quit claim deed I was asked to send the original (or copy), so I did. No one asked if we had a trust. Everything went fine until the county clerk said it was invalid!!! Now the buyer and I are waiting for the final paperwork to be redone.

In our trust, if DH dies everything goes to me and vise versa. But if we both die, everything goes to our 3 adult children. We also have a WILL which spells out exactly who gets what, as far as DH & my personal belongings (jewelry, art work, etc.)

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

Does the new deed in the trusts name go to the resort? And does the resort then put the trust down as the owner?

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Does the new deed in the trusts name go to the resort? And does the resort then put the trust down as the owner?

Yes, it goes to resort. Since DW and I are still the trustee, we are the owners from resort's view. And since it is revocable for now, it is no issue to move it in and out. When we file tax, the trust does not exist. I know for sure when it become irrevocable, all will change. But selling and purchase is not an issue.

Jya-Ning

[Jaybee Senior Member Find all posts View Profile Close Jaybee]

No...When a property is sold, whether or not it's in a trust, the deed switches to the name of the new owner, however they want it deeded. Jean

[Jaybee Senior Member Find all posts View Profile Close Jaybee]

To add to my previous note, when we buy timeshares, we put them in the name of our trust. I don't believe you can do that until they are paid off, but it has never cost us more than a minimal fee to change the title on a deed. Jean

[Guest Close Quarterbore]

I have been looking at trusts a little as well and not for Timeshares but some of my other expensive bad habbits. Curently, I own my own Corp and I have the Corp owning anything that I do not want to deal with issues of property transfer.

The problem with a Corp is the paperwork is just a real pain at times and I understand a trust does not have the same state and federal filing requirements.

Before we buy another timeshare, I will need to look into setting up a trust and then move some of my Corp assets over to the trust.

[Dave M Senior Member Find all posts View Profile Close Dave M]

I will need to look into setting up a trust and then move some of my Corp assets over to the trust.

That could be expensive if any of the assets to be transferred have appreciated in value.

Generally, when a corporation distributes appreciated property to or for the benefit of shareholders (including a transfer to your trust), the corporation is taxable on the difference between the tax basis and the fair market value of the property.

That's one reason why, under current tax law, most tax advisors recommend against putting non-business assets into a corporation. It's easy to put the assets in but often difficult to get them out.