Sham Corporations

Sham Corporations “buy” the timeshare from the timeshare owner. But instead of the timeshare owner receiving money, the timeshare owner pays the Corporation to take over ownership of the timeshare. The sham organization is established only for the purpose of owning timeshares to avoid maintenance fees.

The timeshare is owned by the Corporation. The timeshare resort management company goes after the business entity and is unable to collect any money from an individual. There is no individual to send threatening letters, or make harassing phone calls for collection. The timeshare sits in limbo.

The more creative brokers of these Sham Corporations will contact the resort management company to sell them the timeshare. It may be better from the resort’s point of view to take back ownership and sell to someone else than to have at timeshare sit in limbo without receipt of the maintenance fees.

Many resort management companies will no longer accept transfer of ownership to a business entity such as a Corporation, or Limited Liability Company. They continue to hold the prior individual owner responsible for the maintenance fees.

Deed and Record offers an alternative with genuine, bona fide gifting to friends and relatives. For more information on Deed and Record please go to www.DeedandRecord.com

 

Posted on Jan 29, 2014

Timeshare brokers

Timeshare Brokers

The timeshare broker does not work on a contingency but charges an upfront fee. The fee is paid even if a buyer is not found. The timeshare broker may use his or best effort s and have the most honest intentions to sell the timeshare, but if there is no market and no one willing to buy, then the timeshare will not be sold and the money paid upfront is lost. This adds to the ongoing costs to the owner.

 

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Posted on Jan 29, 2014

Use quit claim deeds for transfers

This Tip Sheet advocates the use of quit claim deeds to fund trusts, remove a spouse as co-owner pursuant to divorce or dissolution of marriage, and to give away a timeshare.

A quit claim deed transfers property ‘as is.’ Quit claim deeds do not contain any implied warranties of debt outstanding or good title. An owner who ‘quit claims’ real property simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. A quit claim is the easiest and cheapest way to transfer ownership between parties who personally know each other.

Quit claim deeds can be used to give away timeshares in Hawaii. Timeshares are most often gifted to children of the owners. Other owners want to gift to nieces, nephews, other relatives or friends. Sometimes a ‘gift’ occurs when the timeshare owner sells the timeshare for nominal value.  

A quit claim deed works in gifting because little or no money is exchanged and the parties know each other. Gifting may have income tax, capital gains tax or gift tax consequences. Owners are advised to consult with a tax accountant for tax consequences of gifting a timeshare by quit claim deed.

Quit claim deeds can be used to fund trusts and avoid probate. Hawaiian timeshares not owned or titled in a trust are at risk for probate.  A timeshare must be transferred into trust while the person is still living.  A quit claim deed works to fund a trust because no real change in ownership occurs. What is changed is how title is held.

Use quit claim deeds to remove a former spouse as owner of a timeshare. A timeshare awarded to one spouse in a divorce must have the non-owning spouse removed as owner. Until the former spouse is removed from title the owning spouse cannot sell or transfer the timeshare and the former spouse will inherit the timeshare in the event of death.  Quit claim deeds work in divorce because the parties have complete information and disclosure on the value of the timeshare and amount of debt outstanding.

Posted on Dec 20, 2013

How Surviving Joint Tenant Can Avoid Probate of Hawaiian Timeshare

On the death of surviving joint tenant a timeshare will go through probate. Deed and Record is a website for Hawaiian Timeshare owners to avoid probate.  Probate is the transfer of ownership from the decedent to living heirs under the supervision of the probate court of Hawaii.  Probate is costly, time consuming and complicated.  Often heirs unable to cope with burden and cost of probate surrender or walk away from the timeshare.

The surviving joint tenant can avoid probate. Options are; transfer the timeshare to children or relatives, add a child or relative as owner or transfer the timeshare into a living trust.

Regardless of the choice made the first step is to report the death of the joint tenant to the State of Hawaii. Reporting is done by ‘affidavit death of joint tenant.’ The affidavit is made by the surviving joint tenant. The affidavit and an original death certificate are recorded with the Bureau of Conveyances.

The surviving joint tenant can now transfer the Hawaiian timeshare to children, friends or relatives as owners by quit claim deed.  A ‘quit claim deed’ transfers property ‘as is.’ Quit claim deeds do not contain any implied warranties of debt outstanding or good title. An owner who ‘quit claims’ real property simply conveys whatever ownership interest he or she has along with any debt or loans secured by the property. A quit claim is the easiest and cheapest way to transfer ownership between parties who personally know each other.

 When transferring or adding relatives the survivor does gives up control over the timeshare. And the transfer or addition is a gift.  It is advisable for the survivor to consult with his or her tax advisor on tax consequences, if any, for gifting.

Another way for the survivor to avoid probate is with a living trust.  The trust is like a Will but avoids probate and the survivor maintains control of his or her assets. The trust identifies who is to receive the assets and who is to distribute the assets. The person who is to distribute the assets is referred to as the Successor Trustee.

To avoid probate the Hawaiian timeshare is transferred into the trust while the owner is living. The transfer is with a quit claim deed from the owner to the owner as trustee of his or her trust.  On the death of the timeshare owner the Successor Trustee files an ‘affidavit death of trustee.’

The affidavit authorizes the Successor Trustee to act on behalf of the trust. The Successor Trustee next files a quit claim deed from the trust to the heir of the Hawaii Timeshare.  All documents can be prepared in one day compared to one year for probate.

Posted on Apr 19, 2013

Gifts

Quit claim deeds can be used to give away timeshares in Hawaii. Timeshares are most often gifted to children of the owners. Other owners want to gift to nieces, nephews, other relatives or friends. Sometimes a ‘gift’ occurs when the timeshare owner sells the timeshare for nominal value.  

A quit claim deed works in gifting because little or no money is exchanged and the parties know each other. Gifting may have income tax, capital gains tax or gift tax consequences. Owners are advised to consult with a tax accountant for tax consequences of gifting a timeshare by quit claim deed.

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Posted on Jan 29, 2013

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