Some people spend decades building up credit card rewards. Frequent travelers may accumulate hundreds of thousands of airline miles or hotel points, while everyday spending can generate sizable cash-back balances and flexible rewards over time.
Those rewards can represent real value, but what happens to them after you die isn’t always straightforward. Unlike money in a bank account, credit card rewards are governed by the terms of each card issuer and loyalty program, which determine whether your heirs can inherit or redeem them.
Depending on the program, your family may be able to claim those rewards, or they could be forfeited when the account is closed. Understanding the rules before they’re needed can help prevent valuable points and miles from being lost during estate settlement.
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Can your heirs inherit airline miles?
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Credit card rewards have become more valuable than ever. Americans redeemed $20 billion more in rewards in 2024 than they did five years earlier, leaving many cardholders with sizable balances of airline miles and hotel points. That makes it worth understanding whether those rewards can be passed on to your heirs as part of your estate plan.
Airline policies vary widely. Some carriers, including Delta Air Lines and JetBlue, generally close a deceased member’s account and do not allow miles to be transferred after death. However, JetBlue’s Family Pooling feature lets eligible family members share points during the account holder’s lifetime, reducing the risk that rewards will be lost later.
Other airlines are more flexible. United Airlines, for example, says it may transfer all or a portion of a deceased member’s miles to an authorized person. The executor may need to provide documentation, such as a death certificate or proof of executor status, and in some cases pay a transfer fee.
Because every loyalty program has its own rules, reviewing your airline’s policy before it’s needed can help your heirs understand what they may be able to inherit and what steps they’ll need to take to claim eligible rewards.
What happens to your hotel points?
Like airline miles, hotel loyalty programs have different rules for whether your heirs can inherit points after your death. Some programs allow points to be transferred to a beneficiary, while others limit who can receive them or require specific documentation.
For example, Hilton and IHG Hotels & Resorts allow points to be transferred after a member’s death if the required documentation is submitted within one year. Marriott International generally limits transfers to a legal spouse or the person named in the member’s will.
Because every hotel loyalty program has its own rules, reviewing them in advance can help your heirs understand whether points can be transferred and what documentation they’ll need to claim them.
Are credit card rewards treated differently?
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Credit card rewards aren’t limited to airline miles and hotel points. Depending on the card, you may have accumulated several types of rewards over the years, and each may have different redemption or inheritance rules.
Before determining what your heirs may be able to claim, it’s helpful to understand the different types of rewards a credit card can offer.
- Cash-back balances: Rewards earned from everyday purchases that can often be redeemed as a statement credit, direct deposit or gift card.
- Flexible rewards points: Credit card points that may be transferred to participating airline or hotel loyalty programs or redeemed through the card issuer.
- Travel portal rewards: Points that can be redeemed through a credit card issuer’s travel booking portal for flights, hotels, rental cars and other travel expenses.
- Statement credits: Credits applied directly to a credit card account, such as merchant refunds, promotional offers or certain rewards redemptions, that reduce the account balance.
These rewards can represent significant value, but whether your heirs can claim them depends on the credit card issuer. Some issuers forfeit unused rewards when an account is closed, while others allow an estate to redeem them or convert them to cash.
For example, Capital One converts eligible miles to cash after being notified of a cardholder’s death. The value is first applied to any outstanding account balance, and any remaining funds are typically sent to the estate after the required documentation is provided. JPMorgan Chase follows a similar approach by automatically redeeming Ultimate Rewards points for a statement credit.
Citigroup takes a different approach. According to its estate services guidance, an estate representative may redeem a deceased cardholder’s ThankYou points, but the rewards generally must be claimed within one year of the cardholder’s death.
Because every issuer has its own policies, reviewing your credit card’s rewards terms now can help your heirs understand what they may be able to inherit.
Does being an authorized user help?
Being an authorized user may help, but it doesn’t automatically give someone ownership of the credit card rewards. Authorized users are permitted to make purchases with the card, but the primary account holder remains responsible for the account and typically retains ownership of any rewards earned.
In some cases, a family member who already has access to the account may be able to redeem rewards before the account is closed. However, what is allowed depends on the credit card issuer’s policies.
How families can avoid losing rewards
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A little planning now can help your family avoid losing valuable rewards later. Consider taking these steps:
- Keep a list of rewards accounts: Keep a list of your accounts so your family knows where to look for potential rewards.
- Document login information securely: Keep account credentials in a secure location, such as a password manager or estate planning document, so your executor can locate your accounts if needed.
- Review program transfer rules: Every loyalty program has different rules for transfers after death. Review those policies in advance so you understand your options.
- Redeem rewards periodically: It’s possible that heirs may run into roadblocks when trying to transfer rewards. Consider periodically redeeming those rewards so they don’t go to waste.
- Discuss rewards as part of estate planning: Discuss your rewards accounts with your estate planning attorney and include any relevant instructions in your estate documents.
- Include loyalty accounts in estate inventories: Make sure your inventory includes airline, hotel and credit card rewards accounts so they aren’t overlooked during estate settlement.
Rewards aren’t an estate asset in the traditional sense
Loyalty programs usually retain broad authority over rewards balances, so rewards don’t function as an estate asset in the traditional sense. While you have full power and control over the balance in your bank account, points and miles are governed by program terms, and the points might be changed or canceled.
While rewards points might seem insignificant compared to retirement accounts or real estate, they can still have meaningful value and might be a sizable portion of an estate. By understanding the program rules in advance, your family can maximize those benefits, rather than losing them during estate management.
