Airline miles and credit card points are not typically the first thing on the agenda in an estate planning meeting. For most people, they feel like a minor side note compared to the business interests, real estate holdings, and investment accounts being discussed. This is commonly seen with corporate execs who have travelled extensively for work or small business owners who have used their credit cards for company purchases.
But for clients who have accumulated significant rewards balances over years of travel and business spending, this may not be a minor issue. Rewards balances worth tens or even hundreds of thousands of dollars in redemption value can be stranded, forfeited, or significantly diminished at death if the right steps have not been taken. And the steps required vary substantially by program. This is a gap we see in estate plans consistently.
Why Airline Miles and Points Are Not Treated as Traditional Assets
Most rewards program terms and conditions treat points and miles as the property of the program, not the account holder. They are not technically an asset in the traditional sense, which means they do not transfer through a will or trust the way a bank account or investment account would. Some programs allow transfer to a named beneficiary. Others allow transfer to family members through a formal request process. Some simply terminate the balance at death.
Without knowing the specific rules of each program where a client holds a significant balance, it is impossible to know what will happen when the estate needs to be settled. And most clients, including many of the high net worth families we work with, have not looked.
What to Review Now
For clients with meaningful rewards balances, we recommend a straightforward review: list the programs where you hold points or miles, look up the transfer and beneficiary designation rules for each, and document that information alongside your other estate planning records. Your estate planning attorney and financial advisor should both be aware of these balances.
Some programs allow you to designate a beneficiary directly within the account settings. Others require a written request at the time of death, often with supporting documentation. A few will allow transfer to a surviving spouse or child without any prior designation. Knowing which situation you are in ahead of time is the only way to ensure the balance does not evaporate.
Credit Card Points vs. Airline Miles: The Rules Differ
The rules differ meaningfully between credit card rewards programs and airline loyalty programs. Credit card programs tied to a specific issuer may have different transfer provisions than the airline programs those points can be converted into. If you have converted or transferred points between programs, the receiving program’s rules govern what happens at death, not the originating program.
This is a relatively small piece of a comprehensive estate plan, but it is a gap we see consistently and one that is entirely avoidable with a bit of advance attention. If you are not sure what your programs allow, it is worth finding out before the question becomes urgent.
