Passing on Loyalty Program Points After Death

Individuals with loyalty program points (e.g. frequent flyer miles) may have some options when it comes to ensuring that those points pass on to relatives and heirs. One option is to give away miles and points during one’s lifetime. It is important for individuals who do not want to pass on miles while they are alive to create a list of user names and passwords for accounts containing points. In some instances companies do not allow users to transfer points to others but will allow someone else to log-on and redeem points after the user’s death.

Another option is to examine company rules concerning the addition of secondary users to an existing account. In some cases the secondary user can use accumulated points after the primary user’s death. Additionally, it is important to include the individuals you wish to receive your loyalty program points in your estate plan because some companies require the decedent’s estate plan to include directions for the transfer of loyalty program points before the company will transfer the points.

See Janet Novack, How to Pass On Your Frequent Flyer Miles, Forbes, Jul. 13, 2011.

For more information on the transfer of loyalty program benefits, see Gerry W. Beyer (Governor Preston E. Smith Regents Professor of Law, Texas Tech Law School) and Mikela Bryant (2012 J.D. Candidate, Texas Tech University School of Law), Rewards from the Grave: Keeping Loyalty Program Benefits in the Family, Estate Planning Developments for Texas Professionals (July 2011).