Not sure if this the right forum....Timeshares and estate responsibility to same

[Lot249]

New Jersey

Upon death, if a timeshare contract has not been fulfilled, (20 years remaining on a 30-year contract) is the estate required to pay the remaining portion of the contract?

If the answer is yes, are there insurances (like mortgage insurance) available to protect against such a situation?

Thanks, your responses are appreciated.

 

[adjusterjack]

Upon death, if a timeshare contract has not been fulfilled, (20 years remaining on a 30-year contract) is the estate required to pay the remaining portion of the contract?

Yes. The estate is responsible for paying the debts of the deceased to the extent that the estate has assets with which to do so.

If the answer is yes, are there insurances (like mortgage insurance) available to protect against such a situation?

If the owner of the time share is still alive he or she can purchase life insurance in a sufficient amount to cover the balance. You can buy a decreasing term policy that can run for 20 years. The amount of the death benefit decreases at the same rate as the balance of the loan decreases (or close to it). Whoever you leave the time share to is also the beneficiary of the policy.

 

[Lot249]

Thank you so much for your response, it's truly appreciated.