Probate of a Timeshare:
Real estate always has to be probated in the state in which it is located. Unfortunately, this means that a Las Vegas timeshare has to be probated in Nevada even if the person who died lived in another state and had a probate in that state. For example, a Wisconsin resident dies owning a timeshare in Las Vegas's Tahiti Village. Because the timeshare is Nevada real estate, title must be transferred to the heir in a Nevada ancillary probate proceeding even though the main probate was done in Wisconsin.
Costs of Probating a Timeshare:
In Nevada the procedure for probating a timeshare is called a "Set Aside w/o Administration" and it is the same procedure used for estates under $100,000. (Most timeshares are worth less than $20,000, but the simplified Nevada probate procedure for estates less than $20,000 doesn't apply if there is real estate--and timeshares are considered real estate.)
A petition is filed and a court date is set. Notice is given to creditors or potential creditors and next of kin. If all of the paperwork is correct and no one objects at the hearing, the judge signs an order at the hearing and the proceeding is largely finished.
Our fee to do this, if no one contests the proposed distribution, is either $1,175- $1,475 which includes all government costs except the real estate transfer tax which usually does not apply. See Death Transfer Fees. We hope this makes probating the timeshare affordable.
The biggest cost in Clark County is the $286 filing fee plus 3% surcharge. But, if we can prove to the Court's satisfaction that the value of the timeshare is under $20,000 that fee and surcharge are waived. So, if there is good proof that the timeshare is worth less than $20,000 and that it is in Clark County, our fee will be $1,175. But, if the timeshare is worth more than $20,000 our fee will be $1,475.
There will usually be a $3-$6 charge for a certified copy of the court's order and a $20-$22 filing fee to file the court's order changing ownership of the real estate with the County Recorder's Office and various e-filing fees if the timeshare property is in Clark County which includes the greater Las Vegas area. Thus, our fees and the government fees are in Clark County exactly $1,175 or $1,475, not counting the possibility of Death Transfer Fees which usually don't apply.
(But, if there is a will that names more than 3 people as beneficiaries, there will be an additional charge of $5 for each person named to cover the cost of copies and postage to give them notice unless the client obtains from them an assignment of their interest and waiver of notice which we prepare.)
(These are the fees that apply in Clark County, Nevada, where Las Vegas is located. Costs and fees for other Nevada counties are similar but not identical. In Nye County which includes the town of Pahrump our fee is $1,375.)
In addition, the timeshare company usually charges its own fee--typically anywhere from $50-$399--to transfer ownership. Thus, the total cost for the transfer is usually around $1250-$1875. Most people will not be able to probate a timeshare without hiring an attorney. The lawyers in our firm are familiar with the probate court and can do these probates quickly.
By charging a flat rate for an uncontested timeshare probate we hope to be your discount, affordable, high quality, low cost probate lawyer. Many lawyers charge by the hour for any kind of probate work. We feel that we can be high quality and lost cost at the same time because we do a lot of timeshare probate.
Note: If there is more than one timeshare, add a $100 fee for each additional timeshare. About $25 of this will be recording and government fees while the other $75 will be a legal fee. This additional $100 does not include whatever fee the timeshare company charges as a transfer fee.
Note on Different Timeshare Companies: Typically, once we record a certified Probate Court Order with the County Recorder transferring title to person entitled under the will, we mail this document to our client who then contacts the timeshare company, pays the timeshare company's title transfer fee, and usually has no problems. If there is a problem we get re-involved. Our favorite timeshare company is Club Tahoe Resort Owners because: 1) They charge a low fee of $50 to transfer title, and 2) It is very easy to reach them by phone with any questions.
What Paperwork do you Need for a Nevada Ancillary
Probate Proceeding for a Timeshare?
If the main probate is in another state you will need the following for the Nevada ancillary probate proceeding:
If the Person died with a will:
1) Either an original certified (raised seal) copy of a death certificate or a legible photocopy of the death certificate,
2) Certified copy of the will admitted to probate in another state,
3) Certified copy of the order admitting the will to probate in another state,
4) Certified copy Letters appointing personal representative in another state,
5) Legal description of the timeshare, usually given to the purchaser in the purchase packet, and
6) Some proof of value of the timeshare. Ideally, the timeshare company will write a letter giving the approximate value; if the timeshare company will not, the executor or administrator can go online and find a listing of similar timeshare and their asking prices.
If the Person died without a will:
1) Either an original certified (raised seal) copy of a death certificate or a legible photocopy of the death certificate,
2) Certified copy of Order appointing Personal Representative in another state.
3) Certified copy of Letters of Administration for the Personal Representative
4) Legal description of the timeshare, usually given to the purchaser in the purchase packet, and 5) Some proof of value of the timeshare. Ideally, the timeshare company will write a letter giving the approximate value; if the timeshare company will not, the executor or administrator can go online and find a listing of similar timeshare and their asking prices.
Whether the Person died with or without a will:
The following biographical data will be required of the person seeking to be administrator or executor: birth date, residential address, and phone number. If there are two co-executors or two co-administrators the above information is required of both. In addition, the date of birth of the decedent is required. (This is included on American death certificates, but not necessarily on death certificates from other countries.)
Value of Timeshare:
Some timeshare companies will give a letter stating the approximate value. If the timeshare was purchased in the preceding two years, the Court has been accepting proof of the purchase price. If the timeshare company won't give a letter, the Court may accept internet listings of similar units for sale. If the person inheriting the timeshare is not a child or parent or spouse of the person who died, there will be a real estate transfer tax due and proof of value of the timeshare will also be required for the County Recorder's office; if this is not provided the County Assessor's office will supply a value. See Death Transfer Fees
Complications of Timeshare Probates--No Administration:
The Clark County Probate Court takes the view that the "Set Aside w/o Administration" procedure discussed above does not apply if there is a sale of the timeshare during the probate proceeding. (If the timeshare is to be sold during the probate, the Probate Court wants the much more expensive "Summary Administration" procedure used.) So, if the heir getting the timeshare is going to sell it, there are two options to use the cheaper, faster "Set Aside w/o Administration" probate procedure. First, the heir can just take title and then sell after the probate. The only big downside is that there will be two transfer fees to the timeshare company. Also there will be second Clark County Recording fee, but this will often only be an extra $18. Alternatively, the heir can sell the property before the Nevada probate proceeding and assign his or her interest to the purchaser in the probate proceeding. This works well if the heir and purchaser know and trust each other; it is a more cumbersome process if the heir and purchaser are strangers. Another problem is if the will divides the estate among many different heirs and not every heir will agree to a re-assignment.
Complications of Timeshare Probates--Changing Legal Descriptions:
Typically our client has a deed from when their parents bought the timeshare. the deed contains a legal description. Unlike the situation with houses and condos, the Clark County Recorder delegates legal records of timeshares to the timeshare company. Thus, anyone can go online and view the legal description of a house or condo, but no one except the timeshare company can go online and determine for certain the current legal description of a timeshare. Legal descriptions of a timeshare can change for atleast two reasons:
1) A new company can take over the timeshares and re-do the legal descriptions, and
2) After the deed is issued there can be subsequent amendments to the various documents the timeshare company files with the County which are part of the legal description.
Some timeshare companies are very helpful in taking our phone call to verify the current legal description. At least one big Las Vegas timeshare company is remarkably unhelpful.
One of the advantages of our flat rate is that we don't charge extra for working out this type of complication even though an honest lawyer working on an hourly rate would have every right and reason to charge extra for this complication. (Because we do a lot of timeshare probates we may have the updated legal description in our data base.)
Avoiding Timeshare Transfer Cost by Estate Planning:
Part of the salespitch for a timeshare is that the timeshare would be a nice thing to leave to your children or other loved ones. The salesperson never mentions the expense of an ancillary probate proceeding in other state. If you own a timeshare and have a trust, we urge you to re-title the timeshare in the name of the trust to avoid an ancillary probate when you die.
If you Have to Do a Timeshare Probate: Planning Ahead:
If you have to bear the expense of a timeshare probate, think ahead to prevent the need for another probate when the person inheriting the timeshare dies. Suppose a married man with children inherits a timeshare. In the same probate proceeding that would transfer the timeshare to the married man, the timeshare could instead be transferred to the married man and his wife and children as joint tenants. Then, if the married man died, his wife or his children could get the timeshare without a probate.
Normally, a husband and wife would not want to own their home--if they paid for it--as joint tenants with their adult children because if their children incurred debts, the children's creditors could go after the home. Because timeshares are generally worth relatively little, the fear of creditors going after the interest of a joint tenant is not that serious, but the cost of probating a timeshare is large in comparison to its value.
There is extra paperwork involved in getting the court to order that the timeshare be transferred not simply to the heir but to the heir and additional people or even to someone other than the heir. (For example, in one of our recent cases a single woman died without a will; under the law her mother inherited her timeshare. But, her mother didn't want it. Instead her brother and his wife took it with the mother's consent.) In addition, it sometimes happens that a timeshare is given to two or more people and everyone gives up their interest to one person (or to one person and his or her spouse). If the timeshare is to go to a person or couple not exactly designated in the will we charge an $75.
Dumping a Timeshare:
Many timeshares are worth keeping to enjoy or to sell. However, some timeshares just aren't worth the annual maintenance fees. Can you dump a timeshare through a probate? The answer may be yes, but the answer is complicated because usually the owner who died lives outside of Nevada so there are two probates involved: the Nevada timeshare ancillary probate and the main probate in the state or country where the owner lived. Call or e-mail if you want to explore this option of dumping a timeshare through a probate procedure because the owner of the timeshare has died.
Reed & Mansfield
6655 W. Sahara Ave., Suite B-200
Las Vegas, NV 89146
phone: 702-343-0494
regular business hours: 9am-5pm (Pacific Coast time) M-F
most days: We will also take your call between
7am-9pm including weekends and holidays
(c) Jonathan Reed 2010, 2011