Increasingly, Canadians are holding U.S. credit cards, particularly from American Express and Chase. The attraction is well known: stronger rewards programs, better airline and hotel partners, and no foreign currency exchange fees. Many Canadians qualify by applying with an ITIN (Individual Taxpayer Identification Number) despite having no U.S. residence.
What is rarely considered is what happens to those U.S. credit-card points when a Canadian cardholder dies in Canada.
Points Are Contractual, Not Estate Property
U.S. credit-card issuers are consistent on one point: reward points are governed by contract, not property law. Both American Express and Chase state in their cardmember and rewards program terms that points:
- have no cash value until redeemed,
- are not owned property,
- and may be forfeited upon account closure, including closure following death.
As a result, points do not automatically pass under a Canadian will. Their treatment depends entirely on the issuer’s bereavement or estate policy.
American Express (U.S. Cards)
American Express publicly acknowledges an estate process for deceased cardmembers. Its guidance for estate trustees confirms that, once notified of a cardholder’s death, Amex will close the account but may allow the personal representative to request a one-time redemption of Membership Rewards points, subject to documentation.
- This position is reflected in:
- American Express’s “Deceased Cardmembers” guidance, and
- the Membership Rewards program terms, which reserve discretion to Amex regarding point redemption following account closure.
Critically, Amex does not state that points are transferable to heirs. Any post-death redemption is an accommodation to the estate, not an inheritance right. If the estate does not act, the points may be forfeited when the account is closed.
Chase Ultimate Rewards
Chase’s published Ultimate Rewards terms take a stricter approach. Chase states that:
- Ultimate Rewards points have no value until redeemed,
- points may be lost upon account closure,
- and Chase retains discretion over how points are handled when an account is closed.
In practice, and consistent with Chase’s own guidance to estates, remaining points are typically converted into a statement credit and applied to the final balance once Chase is notified of the cardholder’s death. Chase does not provide for a transfer of points to beneficiaries or to another account holder.
From an estate perspective, Chase points usually survive only to the extent they reduce the final account balance or generate a residual refund.
Cross-Border Issues for Canadian Estates
These issuer rules create practical difficulties for Canadian estate trustees.
First, U.S. credit-card issuers are governed by their own contractual terms. A Canadian will, even if valid and probated, does not override the rewards-program rules imposed by U.S. issuers such as American Express and Chase.
Second, estate trustee must comply with U.S. issuer requirements regardless of where the estate is administered. Both issuers require formal proof of death and proof of authority to act. Canadian estate documentation is generally accepted, but the process is controlled entirely by the issuer.
Third, timing is critical. Once an account is formally closed following notice of death, unused points may be forfeited if no redemption request has been made. In practice, delay can result in a complete loss of value.
Thanks for reading,
David Morgan Smith and Tiansheng Wen