What Happens to Your Frequent Flyer Miles When You Die?
Estate planning involves more than just traditional assets; it includes those you might not immediately think of, like frequent flyer miles and rewards points. These assets can hold significant value, especially since rewards points and travel miles hold real value for a dream vacation or a spontaneous weekend getaway.
But have you ever considered what happens to these miles after you pass away? It's a question that is frequently overlooked in estate planning. By understanding how to manage and transfer these valuable rewards, you can plan with peace of mind and ensure your travel legacy lives on.
Understanding Airline Policies on Frequent Flyer Miles
Non-Transferable vs. Transferable Miles
When it comes to frequent flyer miles, one of the most critical aspects to understand is whether these miles are transferable or not. Generally, most airline loyalty programs stipulate that miles are non-transferable, meaning they cannot be moved from one account to another, either during the member's lifetime or after their death.
For instance, American Airlines' AAdvantage program clearly states that miles are not transferable and do not constitute property of the member. However, the airline may, at its discretion, credit accrued miles to specified persons under certain conditions.
Some airlines, on the other hand, offer limited transfer options, often with specific conditions and fees. For example, Delta Air Lines allows members to transfer miles to other SkyMiles accounts. This comes with a fee and certain limitations on the number of miles that can be transferred in a calendar year.
Case Examples of Major Airlines
To better understand the varying policies, let's look at a few examples from major airlines:
American Airlines: As mentioned, American Airlines does not allow miles to be willed or inherited. However, they may consider transferring miles to beneficiaries on a case-by-case basis following the member's death. This decision is entirely at the airline's discretion and may involve additional fees and documentation.
Delta Air Lines: Delta has a more structured approach, allowing miles to be transferred between SkyMiles accounts. These transfers are subject to fees and annual limits. However, Delta's policy does not explicitly permit the transfer of miles upon the member's death, although there have been instances where such transfers have been allowed.
Southwest Airlines: Southwest takes a stricter stance. Rapid Rewards points become inactive upon the member's death and cannot be transferred to anyone else. This means that any accumulated points are essentially forfeited upon the member's passing.
Understanding these specific policies is essential for effective estate planning. It highlights the importance of reviewing the terms and conditions for each account to determine the best course of action for your frequent flyer miles.
That’s where having an experienced Texas estate attorney, like Reyna Law, makes all the difference. We know how to navigate those tricky details and draft your plan in a way that gives your family the best chance of retaining and using those miles. Let's ensure your family is protected—even down to those little things like travel rewards that can make a big difference later.
Legal Considerations and Estate Planning for Frequent Flyer Miles
Include Miles in Your Will
When it comes to estate planning, including your frequent flyer miles in your will is an important step to ensure these valuable assets are transferred according to your wishes. While the law does not recognize airline miles as assets that can be directly bequeathed, many airlines may, at their discretion, allow the transfer of miles to beneficiaries if the proper documentation is provided.
To increase the likelihood of a successful transfer, it is advisable to include explicit instructions in your will about who should inherit your miles. This should include the names of the beneficiaries and detailed information about the frequent flyer accounts involved.
For instance, airlines like American Airlines and United Airlines may transfer accrued mileage to individuals named in court-approved divorce decrees or wills. This process typically requires satisfactory documentation and, in some cases, the payment of applicable fees.
Additionally, ensuring that your loved ones have access to your account information, such as login credentials and associated email addresses, can simplify the process of claiming and using the miles after your passing.
You can achieve this by leaving a detailed list of account information with your will or entrusting it to a reliable individual. Furthermore, consider the option to mention your rewards in your will or trust and assign a beneficiary if the program permits it, ensuring a seamless transfer.
The Role of Estate Executors
The estate executor plays a pivotal role in managing and distributing your assets, including your frequent flyer miles. Their responsibility is to carry out the instructions outlined in your will and ensure that all assets are handled according to your wishes.
When it comes to frequent flyer miles, the executor must navigate the specific policies of each airline. This involves gathering essential documentation, such as a death certificate and a copy of the will, and submitting these to the airline. They should also account for any fees related to transferring miles and ensure these fees do not significantly reduce the value of the miles being transferred.
Prompt communication with the airline and adherence to their specific procedures are essential for the executor. Taking a proactive approach can help minimize delays or complications during the transfer process, ensuring a smoother experience for your beneficiaries. It means your best shot at preserving these assets for your loved ones is through solid estate planning.
At Reyna Law, we dig into these program rules for you and help craft a plan that aligns with your travel goals—and protects your loved ones’ ability to benefit from the miles you worked hard to earn. By working with us, you’re not just hiring a lawyer—you’re gaining a partner who plans holistically, helping you make smart, compassionate choices to give the best future for your family.
How to Prepare for the Transfer of Your Frequent Flyer Miles
Documenting Your Miles
To ensure a smooth transfer of your frequent flyer miles, it is essential to keep detailed and organized records. This includes documenting your frequent flyer account numbers, login credentials, and any associated email addresses. Having this information readily available will help your executor or beneficiaries navigate the process of claiming and using your miles after your death.
It is also important to keep a copy of your will and any relevant provisions related to your frequent flyer miles with your other estate planning documents. This documentation should clearly specify who you intend to inherit your miles, as this can serve as critical evidence when the airline reviews the transfer request.
In addition, make sure to review and update your documentation periodically to reflect any changes in your airline accounts or beneficiary designations. This proactive approach will help avoid any confusion or delays in the transfer process.
Communicating with Beneficiaries
Clear communication with your beneficiaries is essential in ensuring that your wishes regarding your frequent flyer miles are respected. Inform your beneficiaries about the existence of your frequent flyer accounts and provide them with the necessary information to access these accounts.
This includes sharing your account numbers, login credentials, and any specific instructions on how to manage the miles after your death.
It is also advisable to discuss your intentions with your beneficiaries while you are still able to do so. This conversation can help them understand the airline's policies and the steps they need to take to claim and use the miles.
By keeping your beneficiaries informed, you can ensure that they are prepared to handle the transfer process efficiently and in accordance with your wishes.
Furthermore, consider involving your estate planning attorney in these discussions to ensure that all aspects of your estate plan, including your frequent flyer miles, are well-coordinated and aligned with your overall estate planning strategy.
Let’s Secure Your Travel Legacy Together
Your frequent flyer miles tell a story—of hard work, family vacations, dreams, and adventures. You earned those rewards with your time, your travel, your spending—shouldn’t your family benefit?
This is your invitation to take the first step. Book your free Peace of Mind Planning Session today. We serve families across Austin, Dripping Springs, and the surrounding areas. We’re ready to meet you where you are—emotionally and geographically. Let’s talk about your travel wishes, your estate plan, and how we can turn uncertainty into peace of mind.
Your children deserve a future where your love and your loyalty rewards continue to show up for them, even when you no longer can.
Let’s make sure your travel legacy lives on—and your miles should go the distance.
FAQ
Do frequent flyer miles belong to the account holder, or are they the property of the airline?
Frequent flyer miles are technically owned by the airline, not the consumer. These miles are part of the airline's loyalty program and are subject to the airline's terms and conditions.
How can I ensure that my loved ones can access and use my frequent flyer miles after I pass away?
To ensure your loved ones can access and use your frequent flyer miles after you pass away, several steps can be taken:
Provide Account Access: Share your login information, including usernames, passwords, and security questions, with a trusted loved one so they can log in and use the miles.
Check Airline Policies: Understand the specific transfer policies of your airline’s loyalty program. Some airlines, like American Airlines, allow miles to be transferred after death with proper documentation, while others, like Delta, do not.
Use Points Pooling: If available, set up points pooling programs, such as those offered by Frontier, JetBlue, or Spirit, to allow miles to be shared among family members.
Include in Estate Planning: Mention your frequent flyer miles in your will and indicate your wish for them to be transferred to a specific person. However, this does not guarantee the airline will honor the request.
Are there any airlines that allow the transfer of frequent flyer miles to beneficiaries after the account holder's death, and if so, what are the requirements?
Yes, several airlines allow the transfer of frequent flyer miles to beneficiaries after the account holder's death. Here are some examples:
American Airlines: Transfer is allowed within one year of death with a death certificate and an affidavit. The process can be done online.
Frontier Airlines: Transfer is possible with a death certificate or a letter from the estate’s executor. Miles can also be transferred through the Family Pooling Program.
Air Canada Aeroplan: Transfers are allowed at the airline's discretion.
Alaska Mileage Plan: Transfers are possible through the "Memorial Miles" program.
ANA Mileage Club: Legal heirs have up to 180 days to send documentation.
United MileagePlus: Transfers are allowed at the airline's discretion.
Virgin Atlantic Flying Club: Transfers are possible once satisfactory documentation is provided.
Can I include my frequent flyer miles in my will or trust, and if so, how effective is this in ensuring they are passed on to my desired beneficiaries?
You can include your frequent flyer miles in your will, but their transfer is not guaranteed. Each airline has its own policies, often stating that miles are nontransferable. However, many airlines may transfer them at their discretion if proper documentation from the will is provided.
Including a clear provision in your will and leaving account details can improve the chances of the miles being transferred to your desired beneficiaries.
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