Hawaiian Timeshares, Intervals, Vacation Deeds and Trusts Tip Sheet by Deed and Record

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Fractional real property interests of timeshares, intervals and vacations must be transferred into a trust to avoid probate and then on the death of the Settlor, transferred to the heirs. Tip Sheet by Deed and Record explains the interaction of a trust and Hawaiian real property.

Hawaiian timeshares

Hawaii timeshare transfer ins and outs of revocable living trusts

Tip Sheet by Deed and Record explains the interaction of trusts and Hawaiian fractional real properties of timeshares, intervals and vacations, collectively referred to as Hawaiian timeshares. Interaction occurs in two stages. The first stage is while the owner is living, he or she transfers ownership to the trust. The second stage is on the death of the owner, the successor trustee transfers ownership out of the trust to heirs as directed in the trust.

Trusts are created primarily to avoid probate court. Probate court can be costly, confusing and time-consuming. A trust is cheaper and easier than probate, but the key to avoid probate is the ownership transferring out of the timeshare owner’s name and into the name of the trust.

For example, Jane Doe owns a timeshare. She creates a trust she names the Jane Doe Revocable Living Trust. Jane must transfer ownership out of her name and into her trust. This is by deed. The wording is “Jane Doe grants to Jane Doe, Trustee of the Jane Doe Revocable Living Trust” her timeshare in Hawaii, with timeshare owner as trustee. This change in title does not is not change who owns the timeshare.

The deed must comply with Hawaiian law on formatting and include a legal description. The deed is recorded with the bureau of conveyances. A copy of the recorded deed is provided to the resort in Hawaii to update the resort’s records.

On the death of the timeshare owner, the transfer to heirs is with two documents - an affidavit of the death of trustee and the deed. The affidavit establishes the death of the owner by a declaration from the successor trustee. The deed transfers ownership out of the trust to the heirs. The deed is signed by the successor trustee.

Hawaiian fractional real properties of timeshares, intervals and vacations interact with trust in two stages. The first stage is while the owner is living, he or she transfers ownership to the trust. The second stage is on the death of the owner, the successor trustee transfers ownership out of the trust to heirs as directed in the trust. The purpose of the trust is to avoid probate.

This press release was provided by Mark W. Bidwell, an attorney licensed by the state of California. Office is located at 4952 Warner Avenue, Suite 235, Huntington Beach, CA 92649. Telephone is 714-846-2888. Website is http://www.DeedAndRecord.com.

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Mark Bidwell
Timeshare Lovers
since: 05/2016
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