In an era where jet-setting has become synonymous with modern living, the accumulation of air travel points has emerged as a game-changer, extending its influence far beyond the realm of travel. Beyond the allure of complimentary flights, the acquisition of air travel points has woven itself into the fabric of our daily lives, affecting various aspects of how we navigate and experience the world. But have you ever thought about where your hard-earned accumulated points will go when you pass away?

As we build a trove of air travel points through loyalty programs and credit card perks, it becomes essential to consider the fate of these points as part of our estate planning. Unlike tangible assets, air travel points don’t always fit neatly into traditional inheritance structures, and their handling requires careful consideration.

Various loyalty programs come with distinct policies governing the transfer or inheritance of accumulated points. While certain programs permit the seamless transfer of points to family members, others impose more restrictive terms. To navigate this, it is vital to thoroughly review the terms and conditions of each loyalty program, ensuring a comprehensive understanding of the available options.

As an example, the Terms and Conditions provided by Air Canada are as follows:

“With the exception of the specific rules relating to Aeroplan Family Sharing, Aeroplan Points, and any other benefits, privileges and rewards of the Aeroplan Program are personal to you and cannot be assigned, traded, bartered, willed, exchanged for cash, or otherwise transferred, except as may be authorized by Aeroplan, at its sole discretion and in accordance with these Terms and Conditions”

While Aeroplan does not permit the explicit bequeathing of points in a will, the company does allow the transfer of points to an individual named as a beneficiary in the deceased’s estate. This might seem contradictory, but it aligns with their internal policy. Essentially, this means that while a testator cannot specifically designate Aeroplan points as a gift in their will, the points can still be passed on to the beneficiary who receives the residue of the estate. The distinction lies in the indirect transfer of points as part of the overall estate rather than a direct bequest in the will. Hopefully, Aeroplan can update their policy and make it more flexible to members.

In order to complete the Aeroplan points transfer to the beneficiary, Air Canada requires the following information:

• First and last name
• Complete mailing address (including postal code)
• Telephone number
• Email address
• Aeroplan number (if available)
• A scanned copy of the late member’s death certificate, along with
• A scanned copy of the portion of the will that names the beneficiaries.

Aeroplan has not explicitly outlined whether a Certificate of Appointment of Estate Trustee will be necessary. However, in the event of intestacy, a Certificate of Appointment of Estate Trustee stands as the sole document capable of providing beneficiary information.

In cases where a beneficiary wishes to disclaim the points, the standard requirement is a disclaimer signed by the beneficiary.

Moreover, for those expressing a willingness to donate points to a charitable organization, a direct transfer to the said organization is not permitted by Aeroplan. Instead, Aeroplan mandates that these points must first be transferred to the beneficiary’s account before facilitating a subsequent donation to the participating charity designated by Aeroplan.

In conclusion, the challenge for frequent flyers and points accumulators arises from the fact that many organizations do not recognize points as having a monetary value or entailing property rights. In the off market, however, points are often valued at $0.02 per point. This poses a potential difficulty for individuals with substantial point accumulations. Presently, there is limited case law in estate matters concerning points.

An exception to this is found in Nathan v. Hoare, [2014] O.J. No. 1328, where a family court judge acknowledged that the Aeroplan points were part of the joint family venture. The judge ruled that both parties were jointly entitled to the miles accumulated at the time of separation and awarded the wife a monetary value of $0.02 per Aeroplan point.

As the points market continues to expand, it is reasonable to anticipate an increase in case law involving disputes over points in the future. The evolving landscape of loyalty programs and the growing recognition of the value associated with accumulated points suggest that legal precedents will become more prevalent in addressing the complexities of points distribution and valuation in estate matters.

Thanks for reading.

Tiansheng Wen