You likely have loyalty-based reward points of some kind, such as Air Miles or Aeroplan.
You might be surprised that the reward points you accumulate may not be transferable by you to your beneficiaries. It depends on the contractual terms and conditions of your program, which you likely have never read or considered. You should check on that. Alternatively, the contractual terms and conditions of your loyalty plan may require that your points be utilized within a certain period of time, or they expire. This may present an issue if you pass away, of course.
According to the CBC, your loyalty program may have sole discretion about whether your points could be transferred to another if you pass away. If they are, there could be a significant fee involved.
1) contact your loyalty program and check into the terms and conditions, including your ability to gift or bequest your accumulated points on your death or disability;
2) request your loyalty program to inform you what information or documentation would be required to successfully transfer or bequest your points on your death;
3) keep a document or memo about your loyalty points to inform your trustee or heirs about your points/program(s) and any information they may need to transfer those on your death; and
4) speak to your estate planning lawyer about incorporating into your Will a gift or bequest of your loyalty reward points, with the above information in hand.
For more information, Umair Adbul Qadir of Hull & Hull LLP provides helpful insight into dealing with your loyalty rewards programs in this recent blog.
CBC's recent article - click here.
Jason Ward – WARDS PC LAWYERS
This WARDSPC BLAWG is for general information only. It is not legal advice, or intended to be. Specific or more information may be necessary before advice could be provided for your circumstances.
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