If you are somebody who travels a lot and you have accumulated a large number of frequent flyer miles or reward points, you know they are a valuable asset. Many people don’t think about including them in their estate planning efforts, which is a big mistake. With some aforethought and planning, you may be able to transfer your valuable loyalty program points to your loved ones.
Every rewards program is different, so each has its own rules that apply to transferring points or miles. The best approach for transferring the program benefits is to start giving them away while you are alive. If you are no longer traveling or you have more points accumulated than you will ever use, start gifting them to family and friends now. Many companies allow you to purchase airline tickets with your miles to be used by anyone. Additionally, you can use your points to buy gift cards, hotel stays or other benefits.
If you are still using your points or miles and you are not ready to gift them to others, you should create a list of your accounts, user names and passwords. This will allow your loved ones to access your accounts if you should die. Many companies that do not allow you to transfer points allow somebody who logs into your account to redeem points or miles.
You should also check into adding family members to your account. Some credit card companies that provide points or miles for every dollar you spend may allow you to add your spouse or other secondary user to your account. If you don’t want this other person to be able to make charges on your credit card, stick it in a safe deposit box with your estate planning documents. Once you pass, the secondary user may have access to your accumulated benefits.
Lastly, you should consider setting forth who you want to leave your program benefits to in your estate plan. Many companies will honor the transfer of points or miles if they are specifically transferred in a will or other estate planning document.
The Astill Law Office has provided high quality legal services for over 30 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.