What Happens to Credit Card Points When You Die?

When a credit card account holder passes away, the status of their accumulated credit card points and rewards becomes a significant consideration. These rewards are typically not considered personal property but a revocable license granted by the issuing financial institution or loyalty program. This means the terms and conditions of the specific program govern what happens to them, and these policies can vary widely. Understanding these policies is important for both account holders planning their estates and for those managing the estate of a deceased loved one.

Default Treatment of Credit Card Points

Credit card points are considered a revocable license granted by the issuer, not property owned by the cardholder. This means points do not automatically become part of a deceased individual’s estate for distribution to heirs. The financial institution or loyalty program maintains control over these rewards.

The common default is that credit card points are forfeited or expire upon the death of the primary account holder. Financial institutions often include clauses stating that points have no cash value and are not transferable. This policy simplifies administration for companies and aligns with points as a privilege, not an inheritable right.

While forfeiture is a frequent outcome, some programs offer exceptions. Some issuers might automatically convert accrued rewards into a statement credit upon notification of the cardholder’s death. This credit would then be applied to any outstanding balance. However, this is not a universal practice and depends on the specific program’s rules.

Navigating Loyalty Program Policies

Policies regarding credit card points after death are not uniform across all issuers or loyalty programs. Each credit card company and its associated rewards program establishes its own unique terms and conditions. These varying policies mean the fate of accumulated points can range from immediate forfeiture to potential redemption or transfer under specific circumstances.

To ascertain the specific policy, consult the terms and conditions or program agreements provided by the credit card issuer or loyalty program. These documents often contain sections addressing account closure due to death, transferability, or redemption options. However, these clauses may not always be explicitly clear regarding post-death scenarios.

If the written terms are ambiguous, contact the program’s customer service department. Representatives can clarify their company’s specific procedures and requirements, such as whether a death certificate or other legal documentation is needed. Some programs may allow a one-time redemption by an estate executor, while others may permit transfers to a family member’s account.

For example, American Express Membership Rewards may allow a one-time redemption by an executor. Chase Ultimate Rewards may state that points are forfeited upon death, though they might sometimes be redeemed as a statement credit. Policies can change, so direct inquiry is often the most reliable method to understand current rules.

Steps for Account Holders and Estate Executors

Account holders can take proactive steps to manage their credit card points and preserve their value before death. One approach is to redeem points for goods, services, or cash back while still alive. Another option, if permitted, is to transfer points to a family member’s account. Some programs may also allow designating a beneficiary or pooling points with another individual.

Maintaining an organized record of all credit card accounts, loyalty program memberships, and login information can simplify matters for estate administrators. This record should include account numbers, current point balances, and contact details for each program. While directly transferring points through a will is generally not possible, an estate plan can include instructions for an executor on how to access and attempt to redeem or transfer points according to program rules.

For estate executors or surviving family members, the first step after a cardholder’s death is to identify all existing credit card and loyalty accounts. This involves reviewing the deceased’s financial records and contacting credit bureaus to obtain a list of open credit cards. Prepare necessary documentation, such as a copy of the death certificate, as this will likely be required by financial institutions.

Upon identifying accounts with accumulated points, the executor should contact each credit card issuer and loyalty program directly to inquire about their specific post-death policies. This includes asking about options for redemption, transfer, or conversion into a statement credit. Some programs may impose time limits, such as 60 to 90 days, within which points must be claimed or redeemed before permanent forfeiture.

Points in Joint Accounts and for Authorized Users

The treatment of credit card points differs when an account involves more than one individual, such as in joint accounts or for authorized users. In a true joint credit card account, both individuals are equally responsible for the debt and have equal ownership of the accumulated points. If one joint account holder dies, the surviving joint holder typically retains ownership of the account and associated points without interruption.

This differs significantly from situations involving authorized users. An authorized user is permitted to make purchases on the primary account holder’s credit card but does not have legal ownership of the account or points. When the primary account holder dies, the authorized user’s access to the account is terminated. All points accrued on that account generally remain tied to the primary account and become subject to the issuer’s post-death policies for single-owner accounts.

Authorized users should immediately cease using the deceased primary account holder’s card, as continued use can be considered fraudulent. While authorized users are typically not responsible for any outstanding debt, their ability to access or redeem points depends on the primary account holder’s loyalty program terms and the estate executor’s actions. Unless a specific program allows transfer to an authorized user, the points are usually lost to them.