Loyalty points, frequent flyer miles, and digital rewards programs have become a significant part of many people’s financial lives. These assets can carry substantial value—sometimes even worth thousands of dollars—but they are often overlooked in estate planning. Just like bank accounts or real estate, these digital assets need to be considered when preparing your estate plan.
Understanding the terms and transferability of these rewards can help you ensure that they are either used or passed on according to your wishes. With the right planning, your heirs may be able to benefit from points you’ve accumulated over years of travel, spending, or brand loyalty.
Why Loyalty Points Belong in Your Estate Plan
While loyalty points and rewards are not tangible property, they often represent real-world value. Whether it’s hotel stays, airline tickets, cashback, or gift cards, the benefits tied to these accounts can be financially meaningful. In some cases, they may help offset travel costs for your loved ones or be used to settle final arrangements.
Including them in your estate plan ensures that:
- Your heirs are aware of these digital assets
- Proper access and instructions are in place
- Any transfer opportunities are not missed
- The value isn’t lost due to expiration or policy restrictions
Challenges of Transferring Loyalty Rewards
The biggest obstacle to including loyalty points in your estate plan is that most rewards programs are governed by terms and conditions that limit or prohibit transfers upon death. These policies vary widely between companies, and many require specific steps to transfer or redeem points.
For example:
- Some airlines allow miles to be transferred upon death, while others do not.
- Hotel programs may allow transfers with proper documentation but often at the company’s discretion.
- Credit card reward points may be forfeited unless a request is made by an authorized user or executor.
Since these policies are often buried in fine print and subject to change, it’s important to research each program and stay current with their rules.
Steps to Include Loyalty Points in Your Estate Plan
Make a List of Your Loyalty Accounts
Start by compiling a list of all your loyalty and rewards programs. Include airline miles, hotel rewards, retail points, cashback programs, and credit card reward systems. For each, document the account number, login credentials (stored securely), and an estimate of the value or points accumulated.
Review Terms and Conditions
Check each program’s terms and look specifically for sections related to death, transferability, and authorized users. Some programs allow beneficiaries to claim points upon providing a death certificate and proof of relationship. Others may allow only limited transfers—or none at all.
Designate Access and Instructions
Even if a program doesn’t formally allow point transfers, it may still be possible for an executor or family member to use the points if they have the login credentials and access. For this reason, consider storing your account information in a secure password manager and authorizing a trusted individual to access it upon your death.
Include Language in Your Will or Trust
Your estate planning documents should reference your loyalty programs as part of your digital assets. While not all companies will honor instructions in a will, doing so ensures your executor has the legal authority to attempt recovery or transfer.
Example language:
“I direct my executor to access and manage all digital reward and loyalty accounts held in my name, including airline miles, hotel points, and credit card rewards, and to use or transfer them according to the terms of the program or in a way that benefits my named beneficiaries.”
Communicate with Your Executor
Let your executor or attorney know about these assets and where to find the necessary information. Explain which programs are important, and if you have specific wishes for how the rewards should be used, make those clear.
Keep It Updated
Loyalty accounts can change frequently, especially if they’re tied to ongoing credit card use or promotions. Periodically update your list and ensure your estate plan reflects any new accounts, closed programs, or changes in value.
Additional Tips
- Some credit cards allow you to add an authorized user who may retain access to rewards after your death.
- Consider consolidating smaller loyalty programs into one if permitted, to reduce administrative hassle.
- Avoid violating terms by planning unauthorized transfers—work within the program’s policies where possible.
Why This Matters
In a world where digital assets are increasingly valuable, loyalty points and reward programs shouldn’t be left behind. Proper estate planning helps ensure your family doesn’t lose access to benefits you spent years accumulating. Even if the programs don’t allow direct inheritance, with the right access and planning, your executor may still be able to use or redeem them in a meaningful way.
Speak to an Attorney
Contact the Law Offices of Juliet Cohen, P.C. for advice on estate planning. Our experienced attorneys can help you develop a personalized plan that safeguards your assets and provides for your family’s future.
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