Every year, millions of Canadians spend time and money in the pursuit of rewards on everything from groceries to flights through an array of loyalty programs. As time goes by and the points accrue, the collection can become quite considerable and valuable.

So, when a dedicated member dies, what happens to all of their points?

The short answer: It depends on the rewards program.

Some programs will allow a deceased member鈥檚 loved ones to easily transfer the points into their own account at no charge, while others have strict policies when it comes to gifting rewards.

Aeroplan

For example, in the popular Aeroplan program, which allows members to collect miles by purchasing flights and goods, beneficiaries are able to request a no-charge transfer of the dead member鈥檚 points into their own account.

The recipient of the points will have to provide information about the original member鈥檚 account along with copies of the death certificate and the part of the will that names the beneficiaries in order to obtain the transfer.

Air Miles

Air Miles, on the other hand, has slightly different requirements for the transfer of points from one account to another in the event of a death.

According to its terms and conditions, Air Miles states that beneficiaries are able to merge their own account with the deceased member鈥檚 or take over ownership of the account (if they don鈥檛 have one of their own) provided they submit a letter from the executor or administrator of the estate along with proof of death documents.

WestJet

WestJet鈥檚 credit card program also requires proof of death and a letter from the executor or administrator of the estate before it will transfer a dead member鈥檚 collected WestJet dollars to a beneficiary鈥檚 account. The company said the rewards must be claimed within 90 days after the deceased member鈥檚 account is terminated.

Lionel Tupman, an estate and trust lawyer and partner at Tupman & Bloom LLP, said consumers need to be aware of the terms and conditions of the loyalty program they sign up for if they鈥檙e interested in bequeathing their rewards to their loved ones one day.

鈥淧eople have to read the fine print,鈥� he told CTVNews.ca 鈥淪ome points are transferrable, others are not, which means they expire on death.鈥�

PC Optimum

Loblaw鈥檚 PC Optimum is one program in which points expire when a member dies.

The company鈥檚 terms and conditions state: 鈥淯pon the death of a program member, the member鈥檚 account will be closed and any PC Optimum points in the account will be forfeited.鈥�

However, PC Optimum members are permitted to transfer points to other members 鈥渁t the company鈥檚 discretion鈥� while they are still living.

While some loyalty programs explicitly state in their terms and conditions that their rewards don鈥檛 have monetary value, Tupman said others do not and the points collected through these programs should therefore be considered legal property, which can be legally transferred to a beneficiary.

鈥淧eople sign up for rewards programs for a reason, which is to get the benefit from it and they sometimes spend thousands of dollars, even millions of dollars conceivably, pursuing the points,鈥� he said. 鈥淚t鈥檚 probably something people should take into account when they sign up for these programs to determine whether or not they can actually leave their points to someone else.鈥�

鈥楢 lot of people don鈥檛 think about it鈥�

Patrick Sojka, the founder of RewardsCanada.ca, said most companies in Canada are 鈥減retty good鈥� at permitting the transfer of a loyal member鈥檚 points without charging a fee.

鈥淎 lot of people put their time and effort into these programs and into these companies,鈥� Sojka said. 鈥淎t the very least, these programs can help pass that on to their other family members or close relatives.鈥�

If the company is less accommodating, Sojka said there is another avenue consumers can take to use their deceased loved one鈥檚 points after they鈥檙e gone.

鈥淢ake sure that your family has access to your accounts, your login credentials, basically, your program number and passwords because most programs allow people to book hotels, flights, you name it, in the name of somebody else,鈥� he said. 鈥淒on鈥檛 let the program know that person passed away.鈥�

Sojka did admit, however, this option is something of a 鈥済rey area鈥� and potentially problematic if the company wants to speak with the original account-holder when booking travel, for example.

With Canadians holding more than 175 million memberships in customer loyalty programs, according to a 2017 census by Colloquy, which provides research on the industry, the question of where all of these hard-earned points will go after death is becoming increasingly prevalent.

Tupman said lawyers at his practice are coming across the question on a more frequent basis. So much so, that they offer wills with specific clauses in them pertaining to digital assets, such as reward points.

鈥淚 think it鈥檚 something that鈥檚 going to become increasingly more common,鈥� he said. 鈥淲e鈥檙e going to see a lot more of it. When people are preparing their wills, it鈥檚 something they should ask their lawyer about as to whether or not they can include that.鈥�

As more consumers collect more points, Sojka said they should be treating their rewards as part of their financial portfolio.

鈥淎 lot of people don鈥檛 think about it,鈥� he said. 鈥淲here you have beneficiaries or people who have access to your financial stuff, it should be the same for loyalty programs because for some people there鈥檚 a lot of money invested in them and a lot of value in them.鈥�

Popular loyalty programs:

  • Aeroplan: Allows no-charge transfer of miles to another account with death certificate, beneficiaries in will
  • Air Miles: Permits merger of accounts or takeover of deceased members account with letter from executor of estate, proof of death documents
  • WestJet: Credit card program allows transfer of WestJet dollars free of charge with death documentation, must be claimed within 90 days of notice of death
  • American Express: Beneficiary can take over deceased鈥檚 account, transfer to new account, or redeemed with letter from executor of estate and copy of death certificate
  • PC Optimum: Earned points cannot be transferred to another account after death and will be forfeited
  • Scene: Reward points can be transferred to another account with documents validating death
  • HBC Rewards: Points can be inherited through a valid legal will if copy of death certificate, letter from executor of estate, and other documents submitted
  • Canadian Tire Triangle Rewards: In the event of a death, membership in the program is immediately terminated and all electronic money is cancelled in the account without compensation.