For frequent travelers, credit card points, airline miles, and hotel rewards can be surprisingly valuable. A person who has spent years accumulating rewards may have hundreds of thousands—or even millions—of points sitting in various accounts.
But what happens to those points when the account owner dies?
The answer is more complicated than most people expect. Unlike a bank account or investment account, rewards points generally are governed by the terms and conditions of the company that issued them. Some companies allow points to be transferred after death. Others convert the rewards to cash or a statement credit. And some programs provide that the points simply disappear.
That means families need to know what programs exist, who to contact, and how quickly to act.
Are Credit Card Points and Airline Miles Actually Inheritable?
Not necessarily.
Most rewards programs state that points or miles are not technically the property of the account holder. Instead, the member has a contractual right to use the rewards according to the program’s rules.
This distinction matters after death. A will stating, “I leave all of my airline miles to my daughter” does not necessarily force an airline to transfer those miles. The airline’s own program rules may prohibit the transfer.
For example, Delta’s current SkyMiles rules state that miles are not the property of the member and generally cannot be transferred upon death. If Delta closes the account because the member has died, the remaining miles are forfeited.
Southwest takes a similar approach. Its Rapid Rewards terms state that points cannot be transferred as part of an estate, inheritance, or will and are forfeited when the account is closed after the member’s death.
Other programs are considerably more accommodating.
What Should the Family Do After Someone Dies?
Before immediately closing credit cards and loyalty accounts, the Personal Representative or Trustee should identify the deceased person’s rewards programs.
Look through credit card statements, emails, travel apps, password-management records, and other account information for:
- Credit card rewards, such as American Express Membership Rewards, Chase Ultimate Rewards, Citi ThankYou Points, and Capital One Miles;
- Airline programs, such as American AAdvantage, Delta SkyMiles, United MileagePlus, and Southwest Rapid Rewards; and
- Hotel programs, such as Marriott Bonvoy and Hilton Honors.
For each account, record the account number or membership number and approximate points balance.
Then contact each program before assuming the points are either transferable or worthless. The rules are different for every program and can change.
The person contacting the company should generally be prepared to provide a death certificate and documentation establishing his or her authority to act for the estate, such as Letters of Personal Representative, a court appointment, or other documentation requested by the company.
How Do You Actually Claim the Points?
Here are several examples of how major programs currently handle the death of a member.
American Express Membership Rewards
American Express provides a specific process for deceased cardmembers. An executor or other authorized representative can contact American Express’s deceased-account department at 1-800-266-7064. American Express asks callers to have information such as the date of death, the executor, trustee, or attorney’s contact information, the caller’s relationship to the cardmember, and the caller’s contact information.
There is also a separate issue involving Membership Rewards points. Under American Express’s current Membership Rewards terms, points generally can be lost when the underlying product is cancelled because of the cardmember’s death. However, the executor or Personal Representative may be able to make a one-time redemption of the points, depending upon the product. American Express directs representatives to call 1-800-AXP-EARN (1-800-297-3276) regarding that redemption.
In other words, do not assume that cancelling the credit card and dealing with the points are necessarily the same transaction.
Chase Ultimate Rewards
Chase handles the issue differently. Under the current Chase Sapphire Preferred Ultimate Rewards program agreement, when Chase is notified of a cardholder’s death, the remaining Ultimate Rewards points are automatically redeemed for cash as an account statement credit. Chase also states that the points generally are not property and cannot be transferred through inheritance.
So a provision in a will leaving “all Chase points” to a particular beneficiary would not necessarily result in that beneficiary receiving the actual points.
American Airlines AAdvantage
American Airlines generally provides that AAdvantage miles are not property of the member’s estate and ordinarily are forfeited at death. However, American currently permits a potentially valuable exception.
American may, in its discretion, make a one-time transfer of eligible miles after receiving satisfactory documentation. That documentation may include a declaration requesting the transfer, the death certificate, and documentation establishing the requesting person’s legal authority. American’s current terms also require the transfer request and supporting documents to be submitted within one year of the member’s death.
Importantly, American warns that its review may take six months or longer while it determines whether there are competing claims to the account.
The lesson: don’t leave miles until the very end of the estate administration.
Marriott Bonvoy
Marriott has one of the more estate-planning-friendly policies.
Marriott currently permits, in its discretion, a one-time transfer of a deceased member’s unused points to one recipient. The recipient must be either the deceased member’s legal spouse or a person specifically named in the deceased member’s will as the intended recipient of the Marriott loyalty points.
Marriott may request the will, death certificate, marriage certificate if the spouse is claiming the points, and identification. Marriott specifically recommends contacting its support team for deceased-member transfers.
This is an important example of why estate-planning language can matter. If someone has a substantial Marriott balance and wants a particular person to receive it, specifically identifying that beneficiary in the will may make the transfer significantly easier.
Hilton Honors
Hilton also allows transfers after death. Points may be transferred to one or even multiple existing Hilton Honors members after Hilton approves the required documentation.
There is an important deadline: the request and supporting documents must be submitted within one year after the member’s death. Hilton currently requires a declaration, death certificate, and an official document establishing the requester’s authority over the estate. The request is submitted to priorityletter@hilton.com.
There is no fee for the transfer, and Hilton states that approved transfers generally occur within five business days after it receives and approves the completed documentation.
How Quickly Should You Act?
Our recommendation is simple: address rewards accounts early in the estate administration.
Do not wait until the estate is ready to close.
Some programs impose specific deadlines. Hilton and American Airlines, for example, currently require requests within one year of death. Other programs may close an account or forfeit points once they learn of the member’s death.
Program rules also change frequently.
A Personal Representative or Trustee should therefore inventory rewards accounts at the same time he or she inventories bank accounts, investment accounts, real estate, insurance policies, and other assets.
Should Your Will or Trust Say Anything About Your Miles?
Yes—particularly if you have a substantial amount of rewards.
But the estate-planning provision should recognize that the ultimate transfer remains subject to the rules of the applicable rewards program.
For example, an estate plan could provide that, to the extent permitted by the applicable program:
“I give all airline miles, hotel points, credit card rewards, loyalty program benefits, and similar rewards associated with my accounts to my spouse. If my spouse does not survive me, I give such rewards to my children who survive me, in equal shares. My Personal Representative and Trustee shall have authority to access, redeem, transfer, convert, or otherwise administer such rewards to the fullest extent permitted by the applicable program and applicable law.”
For a particularly valuable account, the estate plan can be more specific—for example, identifying the intended recipient of Marriott Bonvoy points.
Arizona law also allows a person to authorize fiduciary access to digital assets through a will, trust, power of attorney, or other record when an applicable online tool has not been used. However, a fiduciary’s authority remains subject to applicable terms of service and other law.
That is why good drafting should provide authority to deal with the accounts without promising that the rewards company must honor a particular distribution.
Don’t Forget the Account Information
Even the best estate plan will not help very much if no one knows that the accounts exist.
Consider maintaining a secure inventory identifying:
- The name of each airline, hotel, and credit card rewards program;
- The membership or account number;
- Where login credentials can be located securely;
- An approximate points or miles balance; and
- Who you would like to receive or benefit from the rewards.
Passwords generally should not be written directly into a will or trust because those documents may eventually be disclosed to other people and passwords change frequently.
Instead, your estate plan should give your fiduciary appropriate authority to deal with digital assets and rewards programs, while the practical account information is maintained separately and securely.
The Bottom Line
Credit card points and airline miles can represent meaningful value, but they should not be treated exactly like cash in a bank account.
Each rewards program establishes its own rules. Some permit transfers after death, some permit only a redemption or statement credit, and some prohibit inheritance altogether. A will or trust cannot necessarily override those contractual rules.
The best approach is to plan ahead: identify significant rewards accounts, name an intended beneficiary where appropriate, give your fiduciary sufficient authority to deal with digital and loyalty accounts, and make sure someone knows where the account information can be found.
After a death, the Personal Representative or Trustee should review rewards accounts early, contact each company directly, determine its current requirements, and submit any required documentation before applicable deadlines expire.
At Kierman Law, we help Arizona families create estate plans that address not only traditional assets such as homes and investment accounts, but also the digital accounts and rewards that increasingly form part of our financial lives.
This article is for general informational purposes only and is not legal advice. Loyalty-program terms and policies can change at any time. The applicable program’s current terms should be reviewed when preparing an estate plan and again when administering an estate or trust.