Many news outlets have picked up on the fact that Anthony Bourdain bequeathed his frequent flyer miles to his ex-wife in his will. Here’s how she should handle them.
The will asks her to “dispose of them in accordance with what she believes to have been my wishes.” That’s it. And that’s enough. I have similar language in my will.
But what to do next is the tricky part. Forbes published a convoluted article discussing the difficulty of transferring points from one name to another. It notes that every airline has a unique policy. Some charge to transfer the points while others do not allow it.
Travel + Leisure adds:
While some airline loyalty programs are not eligible to be passed on when you do (like Delta and Southwest), others may transfer points for a fee. Those planning on bequeathing their miles should specifically mention a recipient in their will.
That’s bad advice. Here’s what you should do instead.
View from the Wing nicely outlines individual airline and hotel policies when it comes to bequeathing points. If you want to do it the official way, knock yourself out.
But that creates needless complication. With very few exceptions (Korean Air Skypass being one), your credit points and frequent flyer miles are largely flexible. By that, I mean your miles are not limited to tickets booked in your name. You can use your miles to book tickets for others. This is true for all U.S. airlines as well as popular international loyalty programs likes Aeroplan, British Airways Executive Club, and Lufthansa Miles & More.
Rather than attempt to transfer miles into the name of the beneficiary, give the beneficiary control of the deceased person’s account. The beneficiary can then use the original account to book tickets in her name or for anyone else. All you need is the account number and password to book online. When booking over the phone, you may be asked personal information (e.g., date or birth or home address) or security questions about the account holder, but the process of booking is quite straightforward. Don’t tell the agent your father died and you are using his miles. It is easiest if you just pretend to be the account holder or say you have been given permission to act on behalf of the account holder and then answer any security questions a reservations agent may ask.
The same policy applies to credit card points
The same policy applies to your credit card points. It is true that my Chase Ultimate Rewards and American Express points can only be transferred to my accounts or to the accounts of authorized cardholders, but that’s just one extra step. Once the points are transferred, bookings can be made for anyone, no matter the name on the account.
If a will sets multiple beneficiaries for the miles, the executor or trustee can act as the account manager and make bookings for the beneficiaries on the behalf of the deceased account holder.
Your will or trust should include specific instructions on how to access these points. Use programs like 1Password or Award Wallet to consolidate account numbers, credit card numbers, passwords, PINs, and security questions into a single source.
This advice may run against the letter program policies, but not the spirit. I’m trying to help you out here. It’s a low-risk, path of least resistance that allows for the easiest use of miles. It just makes sense.
CONCLUSION
A small story to illustrate my point. When my uncle died, his brother served as executor. One bank account had about $5,000. Instead of just writing himself a check from his brother’s checkbook and clearing the account out, he went to the bank, announced his brother had died, and asked to began the process of reclaiming the money in the account. A multi-week process followed, with ridiculous amounts of paperwork before the money was finally released. Fees were also involved. The problem could have been solved with one check in a matter of moments. The same logic applies to frequent flyer miles.
Think practically. There’s no need to make the process of miles disbursement a difficult process. Just ensure that all the information needed to access your accounts is readily available and updated.
Hmm… I hope this doesn’t post twice; I’ve waited 10 minutes and it hasn’t shown up.
I’m not sure I’d agree with your proposed handling of the bank account balances. IANAL, but couldn’t that be illegal? Writing a check in your family member’s name and depositing it into your (or another person’s) account could be considered fraud. After all, writing a check = forging a signature! When you go to close the account later (with its zero balance), they’ll presumably notice that the date on the check will be later than the date of the death certificate. That could trigger all sorts of alarm bells. IMHO, it’s a good thing your uncle’s brother went through the proper channels, even if it took forever.
As for the FF miles/points, I think your way of handling things make sense to a certain extent (and for Delta, etc.). For any orphan balances, however, I’d go the “official” route and have them transferred. There’s only so much you can do with <25,000 FF miles. Also, even with sizable balances, it might be better to transfer them for more/better award options.
Thanks for your comment! On the bank account issue, I noted that my uncle was the executor of his brother’s estate, so he had the authority to write checks from my deceased uncle’s account.
I’m wondering the same thing as Tennen. IANAL either, but in your bank account example, if an executor writes himself a check without going through the proper procedure to make himself an authorized signer on the account, couldn’t that be regarded as fraud? It may be a PITA to go through the bank’s process, but using the “easy button” method seems like a dangerous game to play to me.
I guess I’d have the same qualms about suggesting that you impersonate the account holder to make an award redemption. If they figure out what happened (granted, the odds of the reward program figuring it out are slim), it sure seems like you’re setting yourself up for future trouble. Personally I’d rather stick with the “I have permission to act on so-and-so’s behalf” line. That would be a true statement, at least.
Agreed, in both the abstract and in practice … even extending to the world of online banking, investments, etc. Online access is how many if not most of us deal with our own and spouses, etc. accounts – and it’s ironically how the companies want us to do it as it saves them needing more and better trained employees. Given the byzantine procedures of officially transferring, and the fees (always always the fees … because we can), it may be a gray area legally but much of life is gray. Common sense prevails.
Effective? Yes. Cheapest? Yes.
But some of us have this cross to bear called “ethics” and will do things the correct way.
Spare me your jejune self-righteousness, please.
Interesting that someone with a law degree would take offense to a comment about ethics. Just because you can do something doesn’t mean you should.
I take offense to self-righteousness, because there is usually hypocrisy at the root. I also dispute there is anything unethical about using the frequent flyer accounts in the manner in which I have outlined.
Can’t trust people that say they’d rather play by the rules? That tells me all I need to know.
Let’s deconstruct your statement.
“Can’t trust people that say they’d rather
play by the rules? use logic within the spirit of program rules? That tells me all I need to know.”If you really have a cross to bear, I suggest you read Ecclesiastes 5:2 and ponder upon your subjective, misinformed notions of morality, while trying to understand what I am suggesting is not unethical.
Sweet virtue signaling bro. Those miles were earned by the person and deeded to his heirs. Just like all assets, the heirs should have use over them.
Do what you want, more people will value this article than not. Thanks for the insight, Matt.
Haha Matthew you are a better man than I being able to read snarkiness and self righteousness into the comments.
You must admit though that it is not unreasonable to think that advocating for something that is clearly against both the letter and the spirit of these programs might be viewed by lesser mortals as “unethical,” due to conflation of adherence to arbitrary rules with ethics.
Plus you really need to control your anger. I don’t know you at all but I believe being called unethical is a real slap in the face for you. Still, no need to stoop.
Hi Belinda,
Thanks for your comment. I agree that people can have a difference of opinion, but I reject self-righteousness, even admitting that I am sometimes guilty of it myself.
I honesty wasn’t angry at the other commenter, but I was certainly annoyed by he way in which he chose to lodge his disagreement with me.
Is it not unethical for the points program to take back rightfully earned and deeded points? It’s not illegal. And I would argue it’s not unethical to use the points the person earned. Just because it’s written down does not make it ethical.