Have you ever stopped to think about what happens to your credit card points and airline miles when you’re no longer here?
People spend years building up rewards for flights, hotels, merchandise, and other benefits, yet few ever think about including these assets in their estate planning.
Your points and miles may not look like traditional assets, but they can hold real value. Without a plan, the rewards you worked hard to earn could disappear.
Here are three things you need to know to help protect them:
1. Understand What Happens to Rewards After Death
Every loyalty program has different rules for handling points and miles after an account holder passes away.
Some programs may allow rewards to be transferred. For example, programs such as American Airlines AAdvantage or Chase Ultimate Rewards may provide options for transferring points or miles to another person.
However, other programs may cancel rewards after the account holder’s death. In some cases, points can be forfeited unless certain steps are taken.
The step is reviewing the terms and conditions of each rewards program you use so you understand what happens and what options may be available.
2. Take Steps to Protect Your Rewards
Planning ahead can make a difference. Consider including your rewards accounts in your estate planning documents and leaving instructions about who should receive them.
It’s also important to create a record of your loyalty accounts, including account names, usernames, passwords, and other details. This can help your loved ones access the information they need and follow the process.
For credit card rewards, adding a trusted family member as an authorized user may also help prevent rewards from being lost.
3. Know the Process for Passing On Points and Miles
If your loved ones need to transfer rewards, they may need to contact the loyalty program. Many programs require documentation, such as a death certificate or proof of the executor’s authority.
Keep in mind that some companies may charge transfer fees, so your family should consider whether the cost is worth the value of the rewards.
If transferring points is not possible, another option may be using them before accounts are closed. Your rewards could help your loved ones enjoy travel, experiences, or other benefits you intended for them.
Credit card rewards and airline miles may not be treated like cash, but they are still something you earned and valued. Taking time to plan for them can help ensure they are not wasted and can provide clarity for your family.
Estate planning is about protecting everything that matters to you, including the things many people overlook.
If you live in Arizona, call Kierman Law at (480) 719-7333 today to schedule a consultation and learn how proper planning can help protect your legacy.