Estate plans can address many different types of property and even financial obligations. Testators can name guardians for their children and leave instructions for charitable bequests. They can fund trusts as a means of incentivizing better behavior among their beneficiaries.
Typically, it is beneficial to address anything of significant value in an estate plan. Most people focus on physical and financial resources. However, there are also certain intangible assets that they may want to address as well. For example, business reward programs can be incredibly valuable, especially for high spenders and long-term customers. Is it possible to include rewards points in an estate plan?
Many rewards may be transferable
There’s nothing in Ohio state statutes that prohibits the inclusion of rewards program benefits in estate plans. Frequently, the simplest way to address them is to include them in a will or in an inventory of intangible resources. However, it is important to note that there may be restrictions on transfers based on the type of reward involved. Airline reward programs are among the strictest.
Some of the major airlines outright prohibit the transfer of rewards points to others and may include terms in their membership policies that allow for the immediate cancellation of any outstanding reward benefits at the time of a person’s death. Some airlines are more flexible, and checking with the company to learn about its restrictions is typically advisable.
Many credit card reward programs are more flexible. The benefits that people can accrue by using their credit cards as they normally do can range from free plane tickets to cash rewards and gift cards. People can potentially accrue thousands of dollars in rewards.
Checking with the credit card provider or the company running the rewards program can help validate whether a transfer is possible. There are also some smaller rewards programs operated by individual businesses that are subject to the unique rules those companies adopt.
Discussing any current rewards benefits accrued with an estate planning attorney can help people address what can be a valuable but easy-to-overlook intangible asset. Those who address all of their valuable assets while estate planning can feel confident that their beneficiaries can inherit the maximum amount possible.