Losing a loved one is difficult, and dealing with their financial matters can add stress during an already challenging time. Many people accumulate substantial loyalty program points and miles throughout their lives, which may hold significant value. Navigating what happens to these rewards after someone passes away is important for family members.
Some loyalty programs allow points to be transferred or redeemed by beneficiaries, while others terminate the points upon the member’s death. Each program has its own policies and procedures for handling deceased members’ accounts. Understanding these rules can help families potentially access and utilize valuable rewards their loved one left behind.
Providing clear documentation and account details to trusted family members in advance can simplify the process of managing loyalty accounts after a death. Taking proactive steps like adding authorized users or sharing login information may also help ensure hard-earned rewards don’t go to waste. Exploring options like transfers, donations, or redemptions can allow families to honor their loved one’s memory through meaningful uses of their accumulated points and miles.
Understanding Loyalty Program Policies
Loyalty program policies vary widely regarding what happens to points after a member’s death. Some programs allow transfers, while others have strict expiration rules. The executor’s role is crucial in managing these assets.
Differences Between Programs
American Express Membership Rewards may permit a one-time redemption by the executor. They must call 1-800-AXP-EARN to inquire about options. PC Optimum, on the other hand, has a policy where points expire upon the member’s death.
Other loyalty programs fall somewhere between these extremes. Some allow full transfer of points to beneficiaries, while others impose fees or restrictions. It’s essential to check the specific terms and conditions of each program.
Airlines and hotels often have more flexible policies compared to retail loyalty programs. They may allow points to be transferred to a spouse or immediate family member without fees.
Role of the Executor or Personal Representative
The executor or personal representative plays a key role in managing loyalty program points after a member’s death. Their responsibilities include:
- Identifying all loyalty program accounts
- Reviewing each program’s policies
- Contacting programs to initiate transfers or redemptions
- Providing necessary documentation, such as a death certificate
Executors should act quickly, as some programs have time limits for point transfers or redemptions after a member’s death. They may need to make decisions about redeeming points for travel or merchandise if transfers are not allowed.
In some cases, the executor may be able to use the points to fulfill the deceased’s final wishes, such as funding a memorial trip for family members.
Preparing the Necessary Documentation
Transferring loyalty program points after a family member’s death requires specific documentation and account details. Two key steps are obtaining an official death certificate and gathering the deceased member’s account information.
Obtaining the Death Certificate
A certified death certificate is essential for initiating the transfer process. Request multiple copies from the vital records office in the state where the death occurred. Most loyalty programs require an original or certified copy. Death certificates typically include the full name, date of birth, date of death, and place of death of the deceased. Some programs may accept a photocopy, but it’s best to have official copies on hand.
Gathering Membership Details
Collect all relevant account information for the deceased member’s loyalty programs. This includes their full name, membership numbers, and any login credentials. Check email accounts for digital statements or correspondence from loyalty programs. Look through physical mail for membership cards or account summaries. If possible, access the member’s online accounts to review point balances and recent activity. This information will be crucial when contacting each loyalty program to request a transfer of points.
Initiating the Points Transfer Process
Transferring loyalty program points after a family member’s passing requires careful steps and communication with the program provider. The process typically involves contacting customer service and verifying your relationship to the deceased account holder.
Contacting Customer Service
Reach out to the loyalty program’s customer service department promptly. Many programs have dedicated phone lines or email addresses for handling sensitive account matters. Be prepared to provide the deceased member’s account number, full name, and date of passing.
Some loyalty programs offer online forms specifically for reporting a member’s death. Check the program’s website for any such options. If available, these forms can streamline the initial contact process.
Keep detailed records of all communications, including dates, times, and names of representatives you speak with. This information may be useful if follow-up is needed.
Verifying Identity and Relationship
Loyalty programs require proof of your identity and relationship to the deceased member. Common documents requested include:
- Death certificate (certified copy)
- Your government-issued ID
- Executor paperwork or letters of administration
Some programs may ask for additional documentation, such as:
- Marriage certificate (for spouses)
- Birth certificate (for children)
- Will naming you as beneficiary
Submit all required documents as instructed by the loyalty program. Many accept secure digital uploads, while others may require mailed copies. Follow their specific guidelines to ensure smooth processing.
Be patient during the verification process. It can take several weeks for the loyalty program to review and approve the transfer request.
Navigating Specific Loyalty Programs
Different loyalty programs have varying policies for transferring points after a member’s passing. Airlines, hotels, and credit card companies each handle these situations uniquely.
Airlines’ Policies
Delta SkyMiles allows transfers to eligible beneficiaries within one year of the member’s death. A death certificate and documentation of beneficiary status are required. United MileagePlus permits mileage transfers to surviving spouses or significant others. JetBlue TrueBlue points can be transferred to a designated beneficiary.
Southwest Rapid Rewards does not allow point transfers after death. The AAdvantage program considers transfers on a case-by-case basis. Documentation and a small fee may be required.
American Airlines offers a “memorial miles” option. This allows family members to use the deceased’s miles for a tribute flight within a year of passing.
Hotels’ Policies
Hilton Honors allows point transfers to a beneficiary with proper documentation. The process typically takes 4-6 weeks. Marriott Bonvoy permits transfers to a spouse or domestic partner’s account. A death certificate and marriage license are required.
Some hotel loyalty programs may close accounts upon notification of death. It’s crucial to check specific policies and act promptly. Points in closed accounts are usually forfeited.
Credit Cards’ Programs
American Express Membership Rewards points are forfeited upon account closure due to death. Chase Ultimate Rewards may allow transfers to an authorized user’s account. This is decided on a case-by-case basis.
Many credit card companies require the deceased’s executor to contact them directly. They may offer options like cashing out points or applying them to the account balance. Timely action is essential, as points often expire within a set period after the cardholder’s death.
Evaluating Transfer Options
When considering the transfer of loyalty program points after a family member’s passing, two main options exist. These involve transferring points to other family members or exploring alternatives like charitable donations.
To Family Members
Many loyalty programs allow points transfers to immediate family members after a death. American Express Membership Rewards offers a one-time redemption option for executors or personal representatives. They must call 1-800-AXP-EARN to initiate this process. Chase Ultimate Rewards permits combining points with household members through their online portal.
Some airlines, like Southwest, facilitate transfers to beneficiaries with proper documentation such as a death certificate. It’s crucial to check each program’s specific policies, as rules can vary significantly. Certain airlines may charge fees for point transfers.
To Partners or Charities
Some loyalty programs offer the option to transfer points to partner organizations or charities. This can be a meaningful way to honor the deceased’s memory. However, transfer rates and eligible partners differ between programs.
Hotels often allow transfers to airline partners, though this may not always provide the best value. Credit card rewards programs typically offer more flexibility in transfer options. When considering charitable donations, research which organizations accept point transfers and their policies regarding posthumous contributions.
It’s important to weigh the potential value of these transfers against other options, such as family member transfers or final award redemptions.
Managing Taxes and Fees
Transferring loyalty program points after a family member’s passing can have tax implications. Generally, inherited points and miles are not considered taxable income by the IRS.
However, some situations may trigger tax consequences. If the deceased redeemed points for cash or merchandise before passing, those redemptions could be taxable to their estate.
Fees associated with transferring points vary by program:
- Some loyalty programs charge a fee to transfer points to beneficiaries
- Others allow free transfers to spouses or immediate family members
- A few programs prohibit transfers altogether after death
It’s important to review the specific terms and conditions of each loyalty program. Some may require documentation like a death certificate or executor paperwork to process transfers.
Businesses that issue rewards points have reporting requirements. In some cases, they may send Form 1099 to customers who receive substantial value from points or miles.
To minimize tax burden, consider:
- Redeeming points for travel rather than cash/merchandise
- Transferring points to a spouse if allowed
- Using points before the account holder’s passing if decline is anticipated
Consulting a tax professional can provide guidance on managing inherited loyalty program points in a tax-efficient manner.
Planning for the Future
Preparing for the transfer of loyalty program assets after death requires thoughtful consideration. Creating legal documents and understanding program policies can help ensure points and miles are properly handled.
Creating a Will or Trust for Loyalty Assets
Including loyalty program points and miles in estate planning documents is crucial. A will or trust can specify how these assets should be distributed. Some programs, like World of Hyatt, allow point transfers to family members after death with proper documentation.
Credit card points often have specific policies. American Express Membership Rewards may permit a one-time redemption by an executor. IHG One Rewards allows transfers to active members in certain circumstances.
Documenting account details and login information is essential. This helps executors access and manage loyalty accounts. Consider naming a specific beneficiary for each program to simplify the transfer process.
Consulting with an estate planning attorney can provide guidance on incorporating loyalty assets into legal documents. They can advise on program-specific rules and potential tax implications of transferring points and miles.
