Key Takeaways
- Loyalty points from airlines, hotels, and credit cards can represent significant value but are governed by each program's terms rather than treated as traditional estate property
- Executors must inventory all loyalty accounts by checking physical cards, email for reward statements, and credit card statements for program-linked charges
- Program policies vary dramatically, some allow point transfers to heirs while others only permit redemptions or forfeit points entirely upon death
- Credit card rewards typically must be redeemed before closing the card account, as most issuers forfeit unused points at closure
- Acting quickly is critical because many programs accelerate expiration timelines or cancel points shortly after learning of a member's death
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Why Loyalty Points and Rewards Matter
Modern consumers accumulate loyalty points across dozens of programs over years or decades of travel, shopping, and credit card use. These accumulated balances often represent substantial value that families don't realize exists until after someone dies.
Airline miles can be worth one to two cents per mile, meaning 100,000 miles represents $1,000 to $2,000 in travel value. Hotel points typically range from 0.5 to 1 cent per point in redemption value. Credit card rewards points or cash-back balances translate directly to statement credits or cash. Large balances accumulated through years of business travel or strategic credit card use can easily exceed $5,000 to $10,000 in total value.
Unlike bank accounts or investment balances that transfer through normal estate processes, loyalty points exist in a legal gray area. Programs treat them as contractual benefits under the member's agreement with the company rather than as property that automatically passes to heirs. This means each program sets its own rules about what happens when members die.
Some programs allow straightforward transfers to designated beneficiaries or heirs. Others permit redemptions for travel, merchandise, or statement credits but don't allow transfers. Many programs simply cancel all points upon learning of a member's death, causing that value to vanish entirely unless executors act before the program learns about the death.
Without systematic attention to loyalty accounts, executors often discover too late that valuable points expired or were forfeited. Taking time to identify all programs and understand their specific policies protects this often-overlooked category of estate value.
What You'll Need
Before you can effectively manage loyalty points and rewards, create a comprehensive inventory of all programs where the deceased held accounts. Look for physical membership cards in wallets, key chains, or desk drawers, airlines, hotels, car rentals, roadside assistance programs like AAA, and store loyalty programs from retailers and pharmacies.
Search the deceased's email thoroughly for messages about loyalty programs. Look for monthly or quarterly "points summary" or "miles update" emails, "rewards statement" notifications, and "your account is expiring" warnings that reveal active memberships. Many programs send regular communications even to inactive accounts.
Review credit card and bank statements for the past year, watching for rewards program activity. Look for entries showing "points earned" or "miles credited," loyalty program annual fees, and transfers between rewards programs. Many credit cards have linked rewards programs where points accumulate automatically.
For each program you identify, record the program name and type (airline, hotel, credit card, retail), membership number, approximate point or mile balance based on recent statements, and any linked credit card or account.
Gather documentation you'll need when contacting programs: certified death certificates, your Letters Testamentary or Letters of Administration proving executor authority, and basic information about beneficiaries who should receive transferred points, including their own membership numbers in the same programs if transfers are possible.
This master inventory becomes your reference for deciding how to handle each account and tracking outcomes.
Step 1: Inventory All Loyalty Accounts
Conduct a thorough search for every loyalty and rewards program the deceased participated in. Many people underestimate how many programs they've joined over years of travel and shopping.
Check obvious places first. Look in the wallet for airline frequent flyer cards showing membership numbers, hotel loyalty program cards, car rental rewards cards, store loyalty cards from grocery stores, pharmacies, and retailers, and credit cards that earn rewards points. Check email thoroughly by searching for terms like "loyalty," "rewards," "points," "miles," "Bonvoy," "SkyMiles," or specific program names.
Review financial statements going back 12 months. Credit card statements often show points earned per transaction. Bank statements may reveal automatic transfers or linked rewards accounts. Look for small annual fees charged by loyalty programs, these indicate active memberships that might have point balances.
Common program types include major airline programs like Delta SkyMiles, United MileagePlus, American AAdvantage, and Southwest Rapid Rewards. Hotel chains operate programs including Marriott Bonvoy, Hilton Honors, IHG Rewards, and Hyatt World of Hyatt. Credit card issuers manage rewards including Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou Points, and Capital One Miles.
Don't overlook smaller programs. Retail stores, gas stations, restaurants, and even pharmacies often have loyalty programs that accumulate points or cash-back rewards. While individual balances may be modest, collectively these smaller programs can add up to meaningful value.
For each account, try to determine the approximate point or mile balance. Check recent email statements, log into accounts if you have passwords, or call programs to request balance information. Knowing rough values helps you prioritize which programs deserve immediate attention.
Step 2: Contact Programs About Their Death Policies
Once you've identified all loyalty accounts, systematically contact each program to learn their specific policies when a member dies. Policies vary dramatically between programs, assumptions based on one company's approach won't apply to others.
Call or email customer service for each program, or use secure messaging if you can access the deceased's account. Explain that the member has died and you're the executor of the estate. Ask specifically about their policy regarding deceased members: Can points or miles be transferred to an heir or beneficiary? Can they be redeemed for cash, statement credits, gift cards, or travel? What documentation is required to process either transfers or redemptions?
Credit Card Rewards Programs
Credit card rewards require immediate attention because most issuers forfeit unused points when accounts close. Before instructing the card issuer to close the account, confirm whether rewards must be redeemed before closure.
If the program allows, redeem points or transfer them to an heir's account or an estate-controlled account before closing the card. Options typically include statement credits that reduce the account balance before closure, cash deposits to a linked bank account, transfers to airline or hotel partner programs if the rewards program offers this, or gift cards from participating retailers.
Ask about redemption rates and options to maximize value. Some programs offer better value when redeeming for travel through their portal versus cash back. Others have partnerships where transferred points go further.
Airline and Hotel Programs
Contact airline and hotel loyalty programs to inquire about transfer or redemption options. Many programs allow transfers to specific heirs, which often preserves more value than one-off redemptions.
When transfers are permitted, ask about the process for transferring points or miles to a beneficiary's existing account in the same program, any fees charged for deceased member transfers (some programs waive these while others charge standard rates), and required documentation like death certificates and executor letters.
If the program doesn't allow transfers, ask about alternative redemption options: booking tickets or hotel stays for beneficiaries to use, redeeming for gift cards or merchandise, converting points to partner program currencies, or in rare cases, getting cash value for points.
Be prepared to submit required documentation, typically a certified death certificate, proof of your executor authority, and if transferring, the recipient's membership number in the same program. Some programs process requests through customer service while others require specific deceased member forms completed and mailed.
Take detailed notes during each conversation. Record the date you called, representative's name, policy summary they explained, any fees mentioned, required documentation, and timeline for processing. These notes prove valuable if you need to follow up or if program representatives give conflicting information.
Step 3: Execute Transfers or Redemptions Promptly
After learning each program's policy, act quickly to preserve value before points expire or policies change. Many programs accelerate expiration timelines when they learn a member has died.
For programs allowing transfers, submit all required documentation promptly. Provide certified death certificates, executor appointment letters, completed transfer forms if required, and recipient membership information. Follow up within two weeks if you haven't received confirmation. Programs sometimes lose paperwork or requests get stuck in their systems.
For credit card rewards that must be redeemed before account closure, choose the redemption option that provides best value for the estate or beneficiaries. Statement credits reduce any remaining balance owed. Cash deposits to estate bank accounts provide liquidity. Partner program transfers may offer higher value if beneficiaries will use those points. Gift cards work well if beneficiaries shop at participating retailers.
Execute redemptions immediately rather than waiting, once you request account closure, any unredeemed rewards typically forfeit within days. Complete all redemptions, verify they processed, and then close the credit card account.
For airline and hotel programs where redemptions are required, coordinate with beneficiaries about how to use the value. Book travel they'll actually use, redeem for gift cards or merchandise they want, or convert to partner programs where they have existing accounts.
Document everything meticulously. Save confirmation emails showing successful transfers or redemptions, screenshots of account balances before and after transactions, receipts for redeemed gift cards or travel bookings, and correspondence with program customer service.
Step 4: Confirm Results and Update Records
After completing transfers or redemptions, verify everything processed correctly and close out the loyalty accounts.
Request written confirmation from each program showing points or miles were successfully transferred to the heir's account, rewards were redeemed and value was delivered, and the deceased member's account is closed or otherwise finalized. Don't rely on phone assurances, get documentation you can save.
For credit card programs, confirm the rewards balance shows zero before the account closes. Log into the account if possible to verify, or call to confirm the balance is cleared. Verify any statement credits or cash deposits actually posted to the intended accounts.
Update your estate inventory with the final disposition of each loyalty account. Note details like "Transferred 120,000 Delta miles to daughter's SkyMiles account," "Redeemed 80,000 Chase points for $800 statement credit," or "Marriott points forfeited per program policy, no transfer allowed."
Keep all confirmation documents with the estate's financial records. If beneficiaries later question the value they received, you have documentation showing what points existed, what you did with them, and which programs allowed transfers versus redemptions.
Add loyalty accounts to your digital account inventory with final status, so you have a comprehensive record of all digital assets managed during estate administration.
Common Challenges with Loyalty Points
Several issues frequently complicate the process of redeeming or transferring loyalty points after death. Program policies vary dramatically, some freely allow transfers to heirs while others only permit at the program's discretion or refuse transfers entirely. This inconsistency means you can't apply a standard approach across all programs.
Point expiration may accelerate after death or extended account inactivity. Programs that normally give points a year or more before expiring might shorten that window to 60 or 90 days when accounts become inactive. Some programs cancel points immediately upon learning of a member's death.
Transfer fees can be surprisingly high. Programs that allow transfers may charge $50 to $100 or more to move points to an heir's account, reducing the net value received. Calculate whether paying transfer fees makes sense compared to alternative redemptions.
Credit card rewards are particularly vulnerable to loss. If you close the card before redeeming rewards, most issuers immediately forfeit all unused points with no recovery option. This makes credit card rewards the highest priority for immediate attention.
Airline and hotel elite status typically doesn't transfer even when points do. The deceased may have had valuable status like Premier Gold or Diamond Elite that provided benefits, but these perks die with the member. Only the accumulated points can potentially transfer.
Finding every loyalty account requires extensive investigation through years of emails and statements. People join programs during isolated trips and forget about them. These orphaned accounts with modest balances collectively represent value worth recovering.
Large point balances can have substantial travel or cash-equivalent value that makes decisions important. A business traveler with 500,000 airline miles and 300,000 hotel points might have $7,000 to $10,000 in combined value at stake, making it worth considerable effort to transfer or redeem.
Legal and Financial Considerations
Loyalty points and rewards exist in a unique legal category. They're typically treated as contractual benefits governed by each program's terms and conditions rather than as traditional property that passes through probate.
Program terms generally state that points have no cash value and cannot be transferred except as the program allows at its sole discretion. This gives companies broad authority to set policies about what happens when members die. Some programs view allowing transfers or redemptions as customer service rather than legal obligation.
Executors should act quickly because expiration or closure rules can shorten timelines dramatically. Don't assume you have the same deadlines as regular probate tasks. Some programs begin forfeiting points within 30 to 60 days of learning about a death.
Document all transfers and redemptions as estate assets when they have real value. If you transfer $3,000 worth of airline miles to an heir, that's a distribution from the estate that should be noted in your accounting. Large rewards redemptions may affect how other assets are divided among beneficiaries.
Consult a tax or financial professional if redemptions or transfers create substantial value for the estate or heirs. While most loyalty point transfers aren't taxable events, large cash redemptions from rewards programs might have tax implications. Statement credits that pay off debt reduce estate liabilities and should be properly accounted for.
Keep detailed records proving you maximized value reasonably. If you choose to redeem points for gift cards rather than transfer them to an heir, document why, perhaps the program didn't allow transfers, or gift card redemption provided better value. This protects you from claims you mishandled estate assets.
Timeline and What to Expect
Managing loyalty points and rewards should begin within the first month of estate administration, particularly for credit card rewards that face immediate risk when accounts close.
Week 1-2: Conduct comprehensive search for all loyalty accounts through email, statements, and physical cards. Create master inventory with rough balance estimates.
Week 2-3: Contact priority programs, especially credit card issuers before closing accounts, to learn policies and begin redemptions or transfers. Submit required documentation to programs allowing transfers.
Weeks 3-6: Follow up with programs, complete redemptions, verify transfers processed, and collect confirmation documentation. Many programs take 2 to 4 weeks to process deceased member requests.
Weeks 6-8: Close any remaining loyalty accounts that have been fully redeemed or where points were forfeited. Update estate records with final status of all programs.
Act faster for programs with accelerated expiration policies. If a program states points expire 60 days after account inactivity, prioritize that account over programs with more generous policies.
Conclusion
Redeeming loyalty points and rewards after someone dies requires prompt, systematic attention to preserve value that might otherwise be forfeited. These accumulated benefits represent real money, often thousands of dollars, but each program's unique policies about deceased members mean there's no one-size-fits-all approach.
By thoroughly inventorying all loyalty accounts, promptly contacting each program to understand their death policies, executing transfers or redemptions quickly before points expire, and documenting everything carefully, you ensure this often-overlooked category of estate assets benefits the intended heirs rather than simply disappearing.
While the process involves contacting numerous programs and navigating varying policies, the financial value preserved makes the effort worthwhile. Acting within the first month prevents the common outcome where executors discover too late that valuable points have already been forfeited.
If identifying all loyalty programs, comparing transfer versus redemption options, and coordinating with dozens of customer service departments feels overwhelming alongside your other executor duties, Elayne's platform can help identify accounts, coordinate with loyalty programs, and ensure valuable points are properly transferred or redeemed rather than quietly disappearing.
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FAQs
Q: How do I find all loyalty programs if the deceased didn't keep records?
Search email thoroughly for program names and "points" or "miles," review credit card statements for rewards entries, check wallets for membership cards, and call major airlines and hotels to search by the deceased's name.
Q: Can I transfer airline miles to someone who doesn't have an account with that airline?
Usually no, most programs require the recipient to have an existing account in the same program before miles can be transferred to them.
Q: What happens to elite status like Gold or Platinum when someone dies?
Elite status typically dies with the member and cannot be transferred, though accumulated points from that status can sometimes be transferred depending on program policy.
Q: Should I redeem credit card rewards for cash or transfer to airline partners?
This depends on whether beneficiaries will use airline miles, transfers often provide better value per point, but cash or statement credits offer more flexibility.
Q: Do I need to report transferred loyalty points on estate tax returns?
Generally no for reasonable amounts, but consult a tax professional if you're transferring rewards worth more than a few thousand dollars.
Q: What if a program refuses to transfer points even with proper documentation?
Some programs simply don't allow transfers regardless of circumstances, in these cases, try to redeem for gift cards or other value before the account is closed.
Q: How long do I have before loyalty points expire after death?
This varies dramatically by program, some expire immediately upon learning of death, others maintain normal expiration timelines, so act quickly and check each program's specific policy.
**Disclaimer: This article is for informational purposes only and does not provide legal, medical, financial, or tax advice. Please consult with a licensed professional to address your specific situation.
