Reward points from loyalty programs, such as credit card points, airline miles, or hotel rewards, often have specific terms and conditions that govern their transferability, including in the event of death. In many cases, these points cannot be passed down through an estate plan because they are considered non-transferrable and expire upon the account holder’s death.
Some programs may allow the transfer of points to a beneficiary if certain steps are taken, such as notifying the program within a specified time frame or paying a transfer fee. It’s essential to review the terms of each rewards program and include specific instructions in the estate plan to facilitate the transfer, if allowed. Taking steps to ensure compliance with program rules can prevent the unintended loss of valuable points. Because some programs have challenging post-death transfer protocols, older clients may consider being generous with gifting or transfer of points, if possible.
A few examples showing vastly different processes upon death between differing rewards programs:
“Marriott Bonvoy® Points of deceased Member’s Account can be transferred to a family member or a friend who is an active Member. The family member must upload supporting documentation including a death certificate and showing executor of the estate.”
“Accrued American Airlines AAdvantage® Rewards and Benefits do not constitute property of an AAdvantage® member or their estate, do not have any residual property rights value, and except as expressly permitted by American Airlines in its sole discretion, are not transferable upon their death. However, under certain limited situations and upon receipt of documentation satisfactory to American Airlines and payment of any applicable fees, American Airlines may elect to, in its sole discretion and on a one-time basis only, credit accrued AAdvantage® Rewards and Benefits of the deceased AAdvantage® member to persons specifically identified in documentation satisfactory to American Airlines.”
“If notified of your death, Chase Sapphire Preferred® with Ultimate Rewards® Program points will be automatically redeemed for cash in the form of an account statement credit.”
If you have very significant rewards/points value with any program and are confused about how to handle a possible transfer upon your death, please let us know.