What Happens to Frequent Flyer Miles When You Die?

When you think about estate planning, homes, bank accounts, and insurance typically come to mind. But what about digital and reward assets, like your frequent flyer miles and credit card points? At the Law Office of Jeffrey S. Berenholz, LLC, we emphasize the importance of comprehensive estate planning, including often-overlooked assets like travel rewards.

Understanding Frequent Flyer Miles in Estate Planning

Frequent flyer miles and rewards points are valuable assets that many people overlook in estate planning. While they aren't traditional financial assets, they still have significant monetary value. But what exactly happens to these rewards when you pass away?

Every rewards program has its own policy:

• Some allow points to transfer upon death.

• Others clearly state that rewards vanish when the account holder dies.

• A few permit points to pass to surviving spouses or estate executors, based on specific conditions.

Why Ignoring Frequent Flyer Miles Can Cost Your Heirs

Ignoring these policies can mean losing thousands of dollars in benefits. For example, imagine you've accumulated significant airline miles that your family could use for important trips or travel expenses. Without proper planning, these valuable rewards could vanish overnight, depriving your loved ones of intended benefits.

How to Safeguard Your Frequent Flyer Miles and Rewards Points

To protect these valuable assets, take the following steps:

• Review Program Policies: Carefully read the terms and conditions to understand transferability rules.

• Designate Beneficiaries: If permitted, assign a beneficiary for your miles or points within your rewards account.

• Document Clearly: Explicitly mention these rewards in your will or trust, outlining your wishes for their distribution.

• Maintain Updated Information: Regularly verify your rewards program details and ensure beneficiary information stays current.

Real-Life Example: Lost Miles, Lost Opportunities

Consider Jim, an avid traveler who has accumulated over a million frequent-flyer miles. Unfortunately, Jim didn’t mention these miles in his estate plan or assign beneficiaries. After Jim passed away, his family learned that the airline’s policy didn't allow transfers. Jim's miles—and the significant travel value they represented—were lost forever.

This scenario underscores why proactive planning is essential. Including frequent flyer miles in your estate plan ensures your loved ones can benefit from your diligent accumulation of rewards.

Making Frequent Flyer Miles Part of Your Comprehensive Estate Plan

Estate planning isn’t just about money—it’s about safeguarding all your assets, including frequent flyer miles, rewards points, and other non-traditional holdings. By consulting an experienced estate planning attorney at Jeffrey S. Berenholz, LLC, you can ensure every valuable asset is protected and allocated according to your wishes.

Don’t Let Your Frequent Flyer Miles Disappear—Take Action Today

Ready to ensure your frequent flyer miles and rewards points are protected and passed on correctly? Start by scheduling a Peace of Mind Planning Session at Jeffrey S. Berenholz, LLC. We’ll answer your questions, explain your options clearly, and share our unique flat-fee pricing.

This planning session normally costs $450, but mention this article and we’ll waive the fee!

🔗 Schedule Your Peace of Mind Planning Session Now