A client of ours, a retired executive from Manhattan, passed away with over two million frequent flyer miles in his account. His children, acting as executors of his estate, saw this as a significant asset—enough for several international first-class flights. They were surprised, and frustrated, to discover that the airline’s terms and conditions stated the miles expired upon the account holder’s death. The will was silent on the matter, but even if it hadn’t been, it would not have changed the outcome.
This scenario happens more often than people think. In our work with families, we see a growing portfolio of assets that don’t exist on paper but in digital accounts and loyalty programs. The core misunderstanding is that these points and miles are property in the same way a bank account or a piece of real estate is. They are not. They are a contractual privilege, and the contract—the lengthy terms of service you agree to when you sign up—governs their fate.
The Surprising Truth: Airline Miles Aren’t Your Property
When we draft a will or a trust, we are planning for the disposition of a person’s property. New York’s Estates, Powers and Trusts Law (EPTL) § 1-2.15 defines property as “anything that may be the subject of ownership.” This includes your home, your investments, your art, and your cash.
Airline miles, however, fall outside this definition because the airline’s terms of service explicitly state that you do not own them. You are granted a limited, revocable license to use them according to the company’s rules. Because you don’t technically own the miles, you cannot bequeath them in a will. The contract you have with the airline supersedes any directive in your estate plan.
Think of it this way: your will directs who gets your house. It cannot direct your country club to transfer your membership to your child, because the club’s own bylaws control that process. Airline loyalty programs operate on a similar principle. The airline is the sole arbiter of the value, transferability, and longevity of its miles.
Airline Policies: A Patchwork of Rules
The challenge for any executor is that there is no industry-wide standard for handling a deceased member’s loyalty account. The policies are a patchwork, varying from one carrier to the next.
In my practice, I have seen the full spectrum. Some airlines have created a clear, albeit sometimes costly, process for transferring miles. Delta, for instance, generally allows for the transfer of miles from a deceased member’s account upon submission of a death certificate and other documentation. United may also permit transfers, often for a fee.
Other airlines are far more restrictive. Their official policy might be that the miles are forfeited upon death, with no exceptions. An executor who is persistent and polite can sometimes achieve a different result. A well-reasoned letter from the estate’s attorney can occasionally persuade an airline to make a one-time exception, but this is a matter of customer service, not legal obligation. We cannot and do not guarantee such outcomes.
Do not assume. Each program has its own rules, and those rules can change without notice. What was true for your American Airlines account five years ago may not be true today.
Stewardship of Your Digital Legacy
This issue extends beyond airline miles to hotel points, credit card rewards, and other digital assets. The prudent approach is one of careful stewardship. You may not control the outcome, but you can make the process easier for the person you name as your fiduciary—your executor or trustee.
While a will cannot override a corporate contract, it can and should empower your executor to access and manage your digital life. We often advise clients to compile a separate, confidential memorandum that lists these types of assets. This document, which is not part of the public probate record, can provide your executor with account numbers, login credentials, and contact information. It gives them a roadmap to follow.
This simple act of organization is a form of stewardship. It transforms a potential forensic accounting project into a manageable task for your loved ones. It acknowledges that a significant part of a modern legacy is intangible and gives your family the tools to consolidate what they can. Intentional planning here isn’t about forcing an airline’s hand; it’s about reducing the burden on those you leave behind.
The first step is often the simplest: inventory what you have. We guide our clients in creating a confidential digital asset memorandum to accompany their formal estate plan. If you would like to discuss how to structure such a document for your own family, you can schedule a planning session with our firm to review your assets.
