What Happens to Your Bundle of Hotel Points if You Pass Away or Divorce?
May 2015
We all know hotel rewards points have value. They are an asset. But how much consideration have you given to what happens to them in the case of death or divorce? Let’s find out if and how your favorite hotel rewards program handles transfers under those circumstances.
The short answer is nothing is uniform across the programs. Let’s look at the transfer policies across the major hotel groups:
Hilton HHonors:
Hilton’s policies differ depending on whether your points were earned before or after 2004. Prior to 2004, Hilton points were accrued under the banner of their Mutual Fund program and that program has more clear cut rules regarding death and divorce.
Hilton’s post-2004 policy regarding transfers upon death has changed for the better in recent years. As long as the transfer occurs within a year of the member passing and you can provide the required documentation you have a very good chance of success. If you have the Mutual Fund (pre-2004) the points will go either to the surviving spouse or, upon the death of both spouses, to a designated heir via the post-2004 transfers process.
Unfortunately Hilton’s rules regarding divorce are quite restrictive for non-Mutual Fund points and you shouldn’t count on success - although it is certainly worth the effort to try if you have a significant number of points. You are in luck if you have the Mutual Fund (pre-2004) type of accrued points, which allows a 50% split to each spouse without a fee.
At any time a member can elect to use the Transfer Points option (you must first sign into your HHonors to get to the page) to transfer points to any HHonors member. If you elect this option you will incur a fee of .25 cents for each point transferred. This is an expensive way to acquire points since we only value HHonors points at .5 cents per point, which means you will pay 50% of what we believe the points are worth in fees to transfer them. How this fits into one’s estate planning is worth considering.
Hilton’s terms and conditions addressing death and divorce can be found by clicking here.
Hyatt Gold Passport:
Hyatt has a very flexible policy regarding death for those beneficiaries who have the same residential mailing address as the grantor. If the beneficiary resides elsewhere we suggest contacting Hyatt to discuss the requirements.
Unfortunately Hyatt’s rules regarding divorce are quite restrictive and you shouldn’t count on success - although it is certainly worth the effort to try if you have a significant number of points. Regarding transfers, Hyatt only allows the transfer of points for a specific award redemption only.
In any case, make your request in a timely manner because Hyatt Gold Passport points expire 12 months after the last account activity in the member's account in all cases.
Hyatt’s terms and conditions addressing death and divorce can be found by clicking here.
IHG Rewards Club:
IHG allows ease of transfer at death without fees to a member’s beneficiary as long as the proper documentation is provided and the request is made within one year of death.
While the terms do not address divorce, we don’t believe IHG will allow a cost-free transfer. The grantor will likely have to use the Transfer Points option and incur a fee of .5 cents for each point transferred. This is very expensive since we only value IHG points at .7 cents per point, which means you will pay about 70% of what we believe the points are worth in fees to transfer them. How this fits into one’s estate planning is worth considering.
IHG’s terms and conditions addressing death and divorce can be found by clicking here.
Marriott Rewards:
Marriott allows ease of transfer with the proper documentation to a spouse or domestic partner in the case of death. For non-spouse or non-domestic partner beneficiaries we suggest contacting Marriott to discuss the requirements.
Unfortunately Marriott’s rules regarding divorce are quite restrictive and you shouldn’t count on success. Here again, it is certainly worth the effort though for a significant number of points. Regarding transfers, Marriott only allows the transfer of points to a spouse or domestic partner for a specific award redemption only.
Marriott points expire 24 months after the last account activity in the member's account so you have plenty of time to make your request.
Marriott’s terms and conditions addressing death and divorce can be found by clicking here.
Starwood Preferred Guest (SPG):
Starwood is perhaps the most straightforward.
SPG allows ease of transfer without disclosed fees with the proper documentation in the case of death and divorce.
Starpoints expire 12 months after the last account activity so make sure you complete your required documentation within that time frame.
Starwood’s terms and conditions addressing death and divorce can be found by clicking here.
The Wrap-Up:
It’s always a good practice to use your hotel points while you are healthy enough to travel. But if you’ve accumulated significant points, take the extra step to do some advance contingency planning and define your wishes regarding your points in your will.
In the case of a pending divorce, we suggest using those points to travel. Who knows, maybe the luxurious hotel stays will help to strengthen your marriage. But if divorce is imminent, make sure the hotel group will allow a transfer and at what cost before agreeing to accept points as an asset because if the request is denied or the transfer is expensive those points have little to no value.
We encourage you to share this one with family and friends and to enjoy your points while you are healthy and happy. And if the situation warrants, consult with an estate planner or attorney to ensure happiness ever after.
And if you haven’t already, sign-up for complimentary alerts so you never miss an important TRVLVIP update on the travel loyalty programs you care about most.