The Timeshare Tourniquet

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Fraud - particularly if one of those guests is an old friend of yours.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Fraud - particularly if one of those guests is an old friend of yours.

Talking about the LLC idea??

If so, it's our LLC, and one week is already titled to it. The stated purpose of the LLC is the buying, holding, and reselling of other real, property.

I have contacted RCI to see if there are any problems in doing that.

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

Yes in relation to the transfer of timeshares to the LLC for the purpose of evading financial responsibility.

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

I knew I said that wrong when it was too late to re-say it.

Let me try again.

Have you done the things you outlined? Do you have a trust? Are you "impoverished" except for the assets in your trust?

No. I haven't created my trust yet because I am still using opm and am a bit to young. I do have a very solid "will" that includes "advanced directives on health and business matters". I plan to purchase "long term care insurance" in my 60's and will create a trust around the same time. This might be when I can collect social security at 62.

I have assisted a few families in creating their family trusts. These trusts are more to protect the parents assets from medical costs like nursing home. Assets in the trust are shielded after 5 years as the medicaid look back requirement is satisfied. This protects the spouse. When both parents are in the nursing home then the trust protects the remaining assets for the next designated persons. Using a combination of "long term care insurance" and a trust is a good way to go.

Even though the main reason for creating a trust is for asset protection the trust actually shields your dumb decisions from your assets. So this strategy could be applied to timeshares simply because if you don't have any assets there isn't anyway to really collect.

Using this strategy for killing a timeshare contract seems bulletproof and could be beneficial to the both the taker and giver. The giver is out of their obligation and the taker would receive a gift for taking the contract. The taker could also go on a vacation to the resort if they wanted to.

The new person receives the new contract and when the bills come rolling in they contact the resort to explain they are broke and that the resort can have the contract back or pursue legal options. It will be less money on the resort to just take the deed back but because of "business concerns", the resort will likely go the legal route to collect. After 3 or so years of not being able to collect the resort might write it off as a loss to the benefit of the resorts members.

So all of the crying you hear about the people that haven't paid their mf and costs going up solely because of defaulting members is bs in regards to large resorts. The defaults are tax write offs. These write offs are way larger than just the mf as they include all costs to administer and collect. The defaulted $600 mf has turned into a $2400 or more tax write off per year, helping the resorts bottom line.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Yes in relation to the transfer of timeshares to the LLC for the purpose of evading financial responsibility.

The preponderance of my statements would indicate that is not our intention.

But, then, you know that.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

No. I haven't created my trust yet because I am still using opm and am a bit to young. I do have a very solid "will" that includes "advanced directives on health and business matters". I plan to purchase "long term care insurance" in my 60's and will create a trust around the same time. This might be when I can collect social security at 62.

I have assisted a few families in creating their family trusts. These trusts are more to protect the parents assets from medical costs like nursing home. Assets in the trust are shielded after 5 years as the medicaid look back requirement is satisfied. This protects the spouse. When both parents are in the nursing home then the trust protects the remaining assets for the next designated persons. Using a combination of "long term care insurance" and a trust is a good way to go.

Even though the main reason for creating a trust is for asset protection the trust actually shields your dumb decisions from your assets. So this strategy could be applied to timeshares simply because if you don't have any assets there isn't anyway to really collect.

Using this strategy for killing a timeshare contract seems bulletproof and could be beneficial to the both the taker and giver. The giver is out of their obligation and the taker would receive a gift for taking the contract. The taker could also go on a vacation to the resort if they wanted to.

The new person receives the new contract and when the bills come rolling in they contact the resort to explain they are broke and that the resort can have the contract back or pursue legal options. It will be less money on the resort to just take the deed back but because of "business concerns", the resort will likely go the legal route to collect. After 3 or so years of not being able to collect the resort might write it off as a loss to the benefit of the resorts members.

So all of the crying you hear about the people that haven't paid their mf and costs going up solely because of defaulting members is bs in regards to large resorts. The defaults are tax write offs. These write offs are way larger than just the mf as they include all costs to administer and collect. The defaulted $600 mf has turned into a $2400 or more tax write off per year, helping the resorts bottom line.

In other words, speculative, but it seems like it might work. Try it and see. It's not something you have done.



FWIW, I have studied asset protection and preservation, for some of the reasons you state, plus to protect oneself from frivolous lawsuits filed by idiots (which is not speculation ), for about 15-20 years, but have never been able to find a legal professional to get it done, properly at least.

I have been through the Medicaid lookback a few times, as some here who go back at least 12 years can attest.

I also know about TODs and so forth, all part of it.

Oh, look, that's in my signature.



In practice, the only person I have helped "get out of a timeshare", I did by first finding someone willing to take it, which ended when the person I was helping wanted something for Spacebanked weeks. After that, I tried by contacting that person's resort, to get his XSO's name off the ownership. Then he died, which seems to have ended that (but started other stuff).

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

In other words, speculative, but it seems like it might work. Try it and see. It's not something you have done.

In legal matters, lack of an experience is not the same dealio as lack of knowledge. An example would be an attorney that is defending someone from criminal prosecution. It very unlikely the attorney committed the same crime as the person that is being defended. another example is even though I know cpr I couldn't actually do a heart surgery.

So, JLB, you likely know enough about estate planing and you also more than most do about timeshares and you know plenty of old people, hmmmm... I wonder why you don't just come out and say how easy it is to get rid of a ts contract.

[rapmarks Moderator Find all posts View Profile Close rapmarks]

easyrider, you are talking about transferring everything to an irrevocable trust I assume?

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

No. Only transferring assets. The liabilities remain outside of the trust. The use of an irrevocable trust does separate you from your assets at the time of creation. Anything you obtain after creating the trust will become your personal property and subject to probate.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Well, when you get there, and do it, let us know what you do with the TSs, and let us know how it works out.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I wonder why you don't just come out and say how easy it is to get rid of a ts contract.

No you don't.

I have made it clear that I was brought up to not piss off people by discharging my obligations in a manner that would do that.

So, it would be nice to find, or be provided, a more cordial exit strategy.

None of the resorts we have ever owned at have ever done anything bad to us. (Well, maybe Wastegate). The problem is simply that the industry has not provided a way for an amicable parting for anyone.

Neither of the resorts we presently own at do deedbacks, yet they admit to having association-owned weeks, so . . .

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

Many things have changed since the 30's. So, the truth is, imo, get with the program or the program gets you.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

9. Theoretically, put all your assets, the things you want to keep, and protect, in a Trust. Leave your liabilities, the things you don't want and don't to pay any more, out of the Trust. Then stop paying them.

[rapmarks Moderator Find all posts View Profile Close rapmarks]

so you put everything into an irrevocable trust, and i assume you no longer have any income, because if you do they can try to go after that. what do you live on, there is life after 62. sometimes 30 or 40 more years of it.

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

Your trustee has the ability to provide you, the beneficiary of the trust, anything in the trust. The trustee can fund bank accounts, manipulate investments and whatever as described in the trust. You become a beneficiary of the trust and can pretty much do what you want as long as your trustee has no objection. An example would be at 63 you want funds for a new car. The trustee can and should have no problem with this. You want to invest as you usually do, the trustee should have no problem with this if its an action described in the trust.

Then at 85 you decide to give your funds to the hairy chrishnas because your pissed at your kids for taking the car keys. The trustee could be held liable if this type of action was found to be in conflict with the terms described in the trust.

The trustee has an entity they need to answer to called a trust monitor. The trust monitor can request information from the trustee at any time. A trustee usually gives a trust report every year to the trust monitor. The trustee will also, to some extent, deal with secondary beneficiaries who are usually the kids. Depending on how you draft your trust, the secondaries would not necessarily get any financial info until the trust terminates at the time of your death even though they may be receiving gifts from your trust as described in your trust.