Estate Planning for Loyalty Programs Most Families Forget
Frequent-flyer miles and hotel reward points can represent thousands sometimes tens of thousands of dollars in value, yet they are often overlooked in estate planning. Unlike bank accounts, real estate, or investment portfolios, loyalty program points are governed by contract terms, not probate law. That means what happens at death depends entirely on the rules of each airline or hotel program.
Understanding how these programs work can help families avoid losing valuable rewards.
They Are Not Property in the Traditional Sense
Most airline and hotel programs state in their terms that miles and points are not owned property, but rather a personal membership benefit. Because of this, they may not automatically pass under a will or trust.
Programs typically reserve the right to:
- Cancel miles at death
- Allow transfers only at their discretion
- Require specific documentation
- Limit who may receive the account
This means planning ahead is essential.
Airline Programs That May Allow Transfers at Death
Policies change frequently, but some airlines will allow miles to be transferred to a family member after death if proper documentation is provided.
Common examples include:
- American Airlines AAdvantage
- Delta SkyMiles
- United MileagePlus
- Southwest Rapid Rewards
In most cases, the airline will require:
- Death certificate
- Proof of relationship
- Request from executor or family member
- Account information
Even when allowed, transfers are not guaranteed and are subject to the airline’s discretion.
Hotel Rewards Programs Often Have Similar Rules
Hotel programs may allow transfers, but many require the account holder to have authorized the transfer before death.
Programs with transfer options may include:
- Marriott Bonvoy
- Hilton Honors
- World of Hyatt
- IHG One Rewards
Some programs allow intra-household transfers, which can be useful for planning during life.
Practical Estate Planning Tips
1. Keep a List of Loyalty Accounts
Maintain a record of:
- Airline programs
- Hotel programs
- Account numbers
- Usernames
- Approximate balances
This list should be kept with your estate planning records.
2. Include Digital Asset Instructions
Your will or trust should authorize your executor or trustee to access digital accounts, including loyalty programs.
This can be done through a digital asset clause consistent with the Revised Uniform Fiduciary Access to Digital Assets Act (adopted in Texas).
3. Consider Transferring Points During Life
If allowed, transferring or pooling points while living is often easier than trying to transfer them after death.
4. Make Sure Your Executor Knows
If no one knows the accounts exist, the points may expire or be canceled.
Why This Matters for High-Net-Worth Families
Clients with significant travel, business ownership, or multiple credit-card reward programs may accumulate large balances.
It is not unusual for families to lose:
- International business-class tickets
- Luxury hotel stays
- Companion passes
- Credit-card reward balances
All because no one knew how to claim them.
Family Meetings Can Prevent This Problem
One of the best ways to avoid losing digital assets — including airline miles and hotel points — is to hold a family meeting as part of your estate planning.
During these meetings we review:
- Where assets are located
- Who is in charge
- How accounts are accessed
- What your family should do first
When families understand the plan, fewer assets get lost.
THRASH, CARROLL & SANCHEZ LAW GROUP
Estate Planning and Probate • Tax Law • Business & Real Estate Law
Austin, Texas
Helping families preserve what they built — point by point.
Contact us at info@TCSLawgroup.com or call our office at 512-263-5400