This is a guest post, written by Andy Masaki: Andy is a blogger and financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life. In this article he shares some research on whether you can pass on reward points to beneficiaries in a Will.
Most people opt for a rewards credit card or a loyalty card to earn from spending. You can either get cashback offers or accumulate reward points on your every purchase. After you accumulate a substantial amount of reward points, you can redeem it later on while making another purchase.
If you are a frequent traveler, you can sign up for an airline’s frequent flyer program as well! You can find many airline networks like Star Alliance, Oneworld, etc., consisting of domestic and international carriers. If you sign up with their frequent flyer program, you can earn miles while traveling with their partner carriers too.
No doubt, signing up for a rewards card or a loyalty program is a good way to save money. Let’s say, you are accumulating hundreds of thousands of reward points or miles to redeem afterward. But have you ever thought what will happen to your reward points or miles after your demise? Can you pass on your reward points to your heirs when you write your Will?
After an individual’s death, his or her assets will be gathered, business affairs settled, debts paid, necessary tax returns filed, and assets distributed as the deceased individual directed in their will. This distribution of assets will be conducted on behalf of the decedent by a person acting in a fiduciary capacity, either as the executor (in some states called a personal representative) or as a trustee, depending upon how the decedent held his or her property.
The executor plays a very important role after the testator (the deceased will maker) dies as they have a number of duties including the task of tracking down assets, paying creditors, and making sure beneficiaries named in the will receive property to which they are entitled. Being an executor is not a simple role and should not be taken on without serious consideration. To help you gain an informed perspective on the duties of an executor, we have outlined some general information and frequently asked questions that all executors should consider.
What are blended families?
Blended families is a term that includes families for whom one or both partners have children from a previous marriage. In other words, your spouse may not be the biological parent of your children. Blended families have become increasingly common, especially as the divorce rate in many countries including the United States hovers around fifty percent. There are several nuances that emerge when you write a Will for a blended family situation.
Blended families have to balance bequests between children from previous marriages and the current marriage.
Put simply, if you leave everything to your spouse in your Will, and they are not the biological parent of your children, there is every chance that their life would move on. There is then a distinct possibility that your children may not even be a factor in their estate plan.
Blended Families illustrated
Let us take the following scenario: