Losing a loved one is an overwhelming experience, often compounded by the logistical burden of managing their affairs. Among these tasks is a frequently overlooked one: deciding what to do with their accumulated airline miles, hotel points, and credit card rewards.
Because these “currencies” are often tied to individual identities, they can vanish quickly if not handled correctly. Understanding the nuances of different programs—and planning ahead—is the only way to ensure these hard-earned assets are not lost.
Strategies for Success: Planning Ahead
The most effective way to manage rewards is to organize them before a crisis occurs. If you are currently planning your own estate, consider these two steps:
– Include loyalty accounts in your will: Formally designate how these assets should be handled.
– Share access details: Ensure trusted family members have login credentials, answers to security questions, and access to email accounts used for two-factor authentication.
Pro-tip: Since almost all programs allow you to book travel for someone else, simply having access to the account often allows you to use the miles for family travel without needing a formal transfer. However, you must stay vigilant regarding expiration dates.
How Rewards Are Handled: Three Common Outcomes
When a member passes away, programs generally offer three levels of recourse, ranked here from most valuable to least valuable:
- Direct Transfer: Moving the points or miles directly into another person’s loyalty account.
- Third-Party Redemption: Keeping the original account active to book travel for others.
- Fixed-Rate Conversion: The program automatically converts points into a cash value (often at a very poor exchange rate).
Airline Policies: A Mixed Bag
Airlines vary wildly in their flexibility. Some allow for transfers with documentation, while others forfeit all miles immediately upon notice of death.
The Flexible Options
- United Airlines (MileagePlus): One of the most accommodating. They may, at their discretion, credit miles to “authorized persons” if provided with proper documentation and payment of applicable fees.
- American Airlines (AAdvantage): While their standard policy is to terminate accounts, they do allow for one-time transfers in limited situations if you provide a death certificate and legal proof of authority.
The Restrictive Options
- Delta Air Lines (SkyMiles): Highly restrictive; accounts are closed and miles are forfeited upon the member’s death.
- Southwest Airlines (Rapid Rewards): Points cannot be inherited via a will or estate and are typically forfeited. Recommendation: Maintain account access to book travel manually.
- JetBlue (TrueBlue): Does not allow transfers, though their “family pooling” feature can be a useful tool for families to use while the member is alive.
Credit Card Rewards: The Risk of Forced Conversion
Credit card points are often the most “liquid” and valuable, but they are also the most prone to being devalued during estate settlement.
- Capital One & Chase: Both programs tend to be rigid. Upon notification of death, they typically convert remaining points into a cash statement credit. This is often a poor deal, as the cash value is usually significantly lower than the travel value.
- American Express (Membership Rewards): While they don’t explicitly state a transfer policy online, executors should contact their dedicated estate services line to discuss account management.
- Citi (ThankYou Rewards): Estate representatives can redeem points, but they must act quickly—usually within one year of the member’s passing.
Hotel Programs: The Most Flexible Path
If you are looking for the easiest way to preserve value, hotel loyalty programs are generally your best bet. They often allow for relatively seamless transfers to heirs.
- Hilton Honors & IHG One Rewards: Both allow transfers to other members for free, provided you submit a death certificate and other documentation within one year. You can even split points among multiple recipients.
- Marriott Bonvoy: More restrictive than Hilton; points can only be transferred to a single recipient (a spouse or a person named in a will).
- World of Hyatt: Allows a one-time transfer to a recipient who shares the same mailing address, but does not permit transfers via inheritance.
💡 Key Takeaway: Always prioritize transferring points to a new account rather than letting them convert to cash, as the “cash-out” rate is almost always a significant loss of value.
Summary
Navigating loyalty programs after a death requires a balance of legal documentation and quick action. To avoid losing value, aim to transfer points to active accounts or use them for travel before they are forcibly converted into low-value cash credits by credit card issuers.
