What Happens to Your Airline Mile Stash if You Pass Away or Divorce?
February 2016
We all know airline rewards miles have value. They are an asset. It’s no surprise then that many wish to leave their treasure trove of frequent flyer miles to a loved one when they pass - because what better memorial than the gift of travel? And it’s also prudent to determine in advance how miles are treated in the case of divorce. Let’s dig into the details.
Does your favorite airline reward program allow transfers if you pass away or upon divorce? The short answer is nothing is uniform across the airline programs and it often depends on the customer service agent you make your request to, because many airlines make case-by-case decisions.
And, if you’re on the receiving end of miles as part of a divorce, it’s prudent to make sure the airline will even allow a transfer and if so, at what cost, prior to agreeing to accept miles as an asset If the request is denied those miles have no value.
Let’s look at the transfer policies across the major airlines:
Alaska Mileage Plan:
While we could not locate an official Alaska Mileage Plan policy regarding transfers upon death or divorce, it’s our understanding that if a Mileage Plan member passes away, Alaska requires a copy of the death certificate before a transfer of miles to the surviving spouse's account can be processed. In the case of a beneficiary, a copy of the death certificate and legal proof confirming the beneficiary is required. Alaska Mileage Plan miles expire 24 months after the last account activity in the member's account, which leaves a good amount of time to accomplish a transfer.
In regard to divorce, it’s our understanding if the divorce allows for miles to be shared, the member will likely have to transfer online using the Transfer Mileage Plan Miles option. The price to transfer a mile is 1 cent per mile plus a $25 fee for each transaction, which results in a very expensive transfer especially if you intend to transfer a small number of Mileage Plan miles.
If you transfer miles it will cost you approximately 1.08 cents per mile for 30,000 miles and up to 3.5 cents per mile for 1,000 miles! And because you’re simply transferring existing miles instead of buying new ones, you have to factor in the value of the shared miles (which we value at 2 cents per mile). This makes it a very expensive transaction at any purchase level and will negatively effect the overall value of the miles. Be sure to factor in those transfer costs when estimating the value of mileage assets.
American’s written policy states: Neither accrued mileage, nor award tickets, nor status, nor upgrades are transferable by the member (i) upon death, (ii) as part of a domestic relations matter, or (iii) otherwise by operation of law. However, American Airlines, in its sole discretion, may credit accrued mileage to persons specifically identified in court approved divorce decrees and wills upon receipt of documentation satisfactory to American Airlines and upon payment of any applicable fees.
With American it’s certainly worth the effort if you have the proper will and/or legal paperwork. But do so in a timely manner because miles expire 18 months after the last account activity in the member's account. And it’s our understanding a $150 fee could be assessed if they make an exception to allow the transfer.
If you have any trouble with your transfer request, we suggest you hang up and call back to speak to another agent. If you are still unsuccessful, you can always use the Transfer AAdvantage Miles option. The price to transfer a mile is 1.25 cents per mile plus a $15 fee for each transaction, which results in a very expensive transfer especially if you intend to transfer a small number of miles.
If you transfer miles, the cost will range between 1.28 cents per mile for 50,000 miles and 2.75 cents per mile for 1,000 miles! And because you’re simply transferring existing miles instead of buying new ones, you have to factor in the value of the transferred miles (which we value at 2.0 cents per mile). This makes it a very expensive transaction at any purchase level and will negatively affect the overall value of the miles. Be sure to factor in those transfer costs when estimating the value of mileage assets.
Delta’s written policy states: Miles are not the property of any member. Except as specifically authorized in the Membership Guide and Program Rules or otherwise in writing by an officer of Delta, miles may not be sold, attached, seized, levied upon, pledged, or transferred under any circumstances, including, without limitation, by operation of law, upon death, or in connection with any domestic relations dispute and/or legal proceeding.
Unfortunately, Delta’s rules regarding death and divorce have become a lot more restrictive in recent years and you shouldn’t count on success - although it is certainly worth the effort to try for a significant number of miles. One positive note - SkyMiles no longer expire so at least you have some extra time to work on the request.
In a divorce situation you can always use the Transfer SkyMiles option. The price to transfer a mile is 1 cent per mile plus a $30 fee for each transaction, which again results in a very expensive transfer especially if you intend to transfer a small number of SkyMiles.
If you transfer miles it will cost you approximately 1.1 cents per mile for 30,000 miles and up to 4 cents per mile for 1,000 miles! And because you’re simply transferring existing SkyMiles instead of buying new ones, you have to factor in the value of the transferred miles (which we value at 1.5 cents per mile). This makes it a very expensive transaction at any purchase level and will negatively affect the overall value of the miles. Be sure to factor in those transfer costs when estimating the value of mileage assets.
United’s written policy states: Accrued mileage and certificates do not constitute property of the member and are not transferable other than as authorized and/or sponsored by United.
From this policy it’s evident United decides on a case-by-case basis. In the case of a death, it is worth a valiant effort to try for a significant number of miles. But do so in a timely manner because miles expire 18 months after the last account activity in the member's account.
In a divorce situation, if United won’t grant a fee free transfer you can always use the Transfer MileagePlus Miles. The price to transfer a mile is 1.5 cents per mile plus a $30 fee for each transaction, which results in a very expensive transfer especially if you intend to transfer a small number of miles.
If you transfer miles, the cost will range between 1.6 cents per mile for 25,000 miles and 7.5 cents per mile for 500 miles! And because you’re simply transferring existing miles instead of buying new ones, you have to factor in the value of the transferred miles (which we value at 1.5 cents per mile). This makes it a very expensive transaction at any purchase level and will negatively affect the overall value of the miles. Be sure to factor in those transfer costs when estimating the value of mileage assets.
The Wrap-Up:
It is not uncommon for airline employees to be incredibly sympathetic when faced with the death of a member’s loved one or even divorce and, if you don’t have success, it may be best to hang up and try again. Sometimes it comes down to who you have on the other end of the line.
Based on the hassle and restrictions, it’s a good practice to use your miles while you are healthy enough to travel. And take the extra step to define your wishes regarding your miles in your will.
In the case of a pending divorce, use those miles! Maybe the joys of travel will help to strengthen your marriage. But if divorce is imminent, make sure the airline will allow a transfer and if so at what cost prior to agreeing to accept miles as an asset. If the request is denied or the transfer is very expensive, those miles may have little to no value.
We encourage you to share this one with family and friends. And enjoy your miles while you are healthy and happy! And remember, if your miles are significant, consult with an estate planner or attorney to review the specifics of your circumstance.
And go ahead and sign up for complimentary email alerts so you never again miss an important trvlvip Perk, Tip or Blog post!