Estate Plan for a Timeshare in Arizona
Arizona is a great place for a vacation. Some folks like it so much, they move here. Others want to enjoy the diverse vacation opportunities year after year. One of the most flexible and affordable options for family vacations is investment in a timeshare property. It is an asset you can enjoy for your lifetime with family and friends, and it can be passed on when you die. Phelps LaClair in Gilbert, Chandler and Mesa is an estate planning law firm that can work with you to design an estate plan for a timeshare that will keep giving benefits to your family long after you are gone.
How to pass it on
There are essentially two options for leaving a timeshare to beneficiaries: put it in a will, or put it in a trust. A will requires probate court to determine the validity of the document as well as to decide who will receive your things. An executor will be named by the court to administer the distribution of assets. Probate court removes many decisions from your control and generates extra court costs, legal fees, and time delays for your estate.
Put it in a Revocable Trust
Your second (and best) option is usually a revocable trust. With a trust, there is no probate court involvement. When you are the Trustor and Trustee, you maintain full control of what happens with your property. There is no need to consult with others for management decisions or for determining the person who will receive the property.
The timeshare can be held in trust for a period of time after you die, before being distributed to beneficiaries. The timeshare fees will be paid from the estate, which can have tax benefits for the beneficiaries. Holding it in trust also gives time for children and grandchildren to enjoy the timeshare before taking on the burdens of ownership.
In establishing a revocable trust, you want to work with a qualified estate planning law firm. You will include all of your assets and financial accounts in the trust. You will name the beneficiaries who will inherit all or parts of the trust. And you will appoint a Successor Trustee to administer the trust when you pass. We can help you with all of that!
Phelps LaClair can guide you on all relevant legal issues, including Arizona probate law, Federal estate and gift tax laws, asset transfer, and trust administration. We are a second generation law firm and we have been in business for 40 years. Call us to discuss your needs concerning an estate plan for a timeshare property. Your first consultation with us is free. We will be happy to work with you to secure a great future for yourself and your family.
Images used under creative commons license (Commerical Use) 08/28/2019 Photo by Angelique Downing from Burst