Do Frequent Flier Miles Expire When You Do?

 

Accumulated frequent flier miles can be valuable assets, but what happens to those miles after somene dies?  Can a spouse or other heirs inherit them, or do the miles simply evaporate like a contrail?

The answer to whether they can be inherited depends on the airline, but consumer experts say that even if the airline’s official policy is “no,” with a little perseverance the answer could still be “yes.”

“What you often find is that the formal policy, as found in their terms and conditions, says that frequent flier miles cannot be given away through wills, but when you call the customer service center you find out that yes, in fact they will allow that,” Tim Winship, editor of FrequentFlier.com, told The New York Times in 2012. “What you get is two very different versions of what they will and won’t do.”

For ecample, JetBlue’s official policy seems unambiguous and airtight: “14. Miscellaneous Provisions. 14.1 Points are non-transferable and may not be combined among TrueBlue Members, their estates, successors and assigns. Accrued Points and Award Travel do not constitute property of Member and are non-transferable (i) upon death, (ii) as part of a domestic relations matter, or (iii) otherwise.”

However, the website NerdWallet reported in January 2014 that when it called JetBlue’s customer service department, it was told that a beneficiary could inherit by supplying a death certificate and proof of beneficiary status.

Other airlines put their mixed message right in their official policy statement.  American Airlines currently states that: “Neither accrued mileage, nor award tickets, nor status, nor upgrades are transferable by the member (i) upon death, (ii) as part of a domestic relations matter, or (iii) otherwise by operation of law. However, American Airlines, in its sole discretion, may credit accrued mileage to persons specifically identified in court approved divorce decrees and wills upon receipt of documentation satisfactory to American Airlines and upon payment of any applicable fees.” [emphasis added]

United is more succinct: “Accrued mileage and certificates do not constitute property of the member and are not transferable other than as authorized and/or sponsored by United.” [emphasis added]

In 2013, the website airfarewatchdog made five separate calls to United sales reps about inheriting MileagePlus accounts and reported that it “received a myriad of answers from a flat-out ‘no’ to a full-on ‘yes.’ It appears that some agents will allow you to transfer miles between the account of the deceased and a beneficiary.”  But, as do many airlines, United charges a fee for transfers -- in their case $150. 

 “It never hurts to ask,” advises The Points Guy. “Airline employees have shown themselves to be endearingly human when faced with a customer’s grief.”

This has been the case with Delta, which caused some turbulence among its customers a couple of years ago when it announced it was disallowing transfers of miles after death, an abrupt shift from its former policy of permitting them via an affidavit. Although miles are now officially forfeited upon death, when airfarwatchdog contacted Delta in 2013 “a phone agent admitted that Delta would not know of one's death unless notified (hinting that the onus is on the family member to enforce this policy).”  A year later, NerdWallet reportedthat “If you have access to the [SkyMiles] account in question, miles can be transferred for a processing fee and a fee per mile. WorldPerks accounts should have already been transferred, but if not can be transferred at no cost.”

If you know your deceased spouse’s or other relative’s frequent flier number and password, what’s to stop you from simply using the miles?  That’s certainly possible, although misrepresenting yourself would violate mileage program rules.  Moreover, you could easily have miles left over that are not sufficient for a ticket unless transferred to another account.  You could also run into problems if you use a different credit card than the one linked to the deceased frequent flier’s account, or have a different address or last name. 

“I make it a point not to recommend that my readers break program operators’ rules, even if they are rules I disagree with,”FrequentFlier.com’s Tim Winship writes. “So I will leave you with a question: Is it worth the risk of being discovered and losing the miles to avoid the hassle and, possibly, the expense of going through authorized channels?”

Your spouse or heir will probably have a better argument with the airline if you specify in your will who should inherit your miles or points. And, as The Points Guy points out, “If you’re in the unfortunate situation of knowing you’ll soon die, either use the heck out of those miles, or start transferring them now.” 

Most Caregivers Are Now Entitled to Minimum Wage and Overtime Pay

 

The federal government recently extended minimum wage and overtime protections to most home health care workers. If you are hiring a caregiver for yourself or an elderly loved one, you need to become familiar with the rules, even if the paid caregiver is a family member.

Under the Fair Labor Standards Act (FLSA), employers who hire casual babysitters and domestic service workers to provide "companionship services" to elderly persons or persons with illnesses, injuries, or disabilities are not required to pay the minimum wage or provide overtime pay. Therefore, if you directly hire a caregiver whose job it is to solely keep the elderly person company (for example, taking the client for walks, playing games with the client, reading, or accompanying the client on errands), then FLSA protections do not apply.

However, the companionship services exemption is not applicable when the caregiver spends more than 20 percent of his or her workweek performing "care services." Care services are defined as assisting the client with activities of daily living, including dressing, feeding, bathing, toileting, transportation, light housework, managing finances, taking medication, and arranging medical care. Caregivers who perform tasks for the entire household and caregivers who perform medical services are also not covered under the companionship exemption. In addition, if a home health care agency is the caregiver's employer, the home health care agency cannot ever claim the companionship exemption.

The rules for live-in caregivers are slightly different. If you hire the live-in caregiver directly, you must pay the caregiver minimum wage, but you are not required to pay overtime. Third-party employers (such as health care agencies) that hire live-in workers are required to pay overtime. Under the FLSA, to be a "live-in" home care worker, the worker must either live at the client's home full-time or spend at least 120 hours or five consecutive days or nights in the client's home per week. Caregivers who live with clients are not necessarily working the entire time they are at the house, and employers do not need to pay for sleep time, mealtime, or other off-duty time.

You can hire family members as care workers and the same rules apply to them as to non-family care providers. If you hire family members, you must pay them overtime and minimum wage as long as they are spending more than 20 percent of their time on care services. However, it is very important to have a written plan of care detailing the family member's working hours and obligations, so it is clear what is work time and what is family time.

The federal minimum wage in 2016 is $7.25 per hour, but states may have higher rates. Employees who are entitled to overtime pay can receive one and a half times their normal rate for every hour worked over 40 hours a week.

Regardless of whom you hire to provide care for yourself or your loved one, you should have a written caregiver contract detailing the caregiver's rights and responsibilities. Contact your attorney to make sure you are following the law when it comes to hiring a caregiver.

Beware of Non-Lawyers Offering Medicaid Planning Advice

 

In recent years a number of non-lawyers have started businesses offering Medicaid planning services to seniors. While using one of these services may be cheaper than hiring a lawyer, the overall costs may be far greater.

If you use a non-lawyer to do Medicaid planning, the person offering services may not have any legal knowledge or training. Bad advice can lead seniors to purchase products or take actions that won't help them qualify for Medicaid and may actually make it more difficult. The consequences of taking bad advice can include the denial of benefits, a Medicaid penalty period, or tax liability.

As a result of problems that have arisen from non-lawyers offering Medicaid planning services, a few states (Florida, Ohio, New Jersey, and Tennessee) have issued regulations or guidelines providing that Medicaid planning by non-lawyers will be considered the unauthorized practice of law. For example, in Florida, a non-lawyer may not render legal advice regarding qualifying for Medicaid benefits, draft a personal service contract, determine the need for or execute an income trust, or sell income trust kits. In Florida the unlicensed practice of law is a felony that is punishable by up to five years in prison, while in Ohio practicing law without a license is subject to civil injunction, civil contempt, and civil fine

Applying for Medicaid is a highly technical and complex process. A lawyer knowledgeable about Medicaid law in the applicant’s state can help applicants navigate this process. An attorney may be able to help your family find significant financial savings or better care for you or your loved one. This may involve the use of trusts, transfers of assets, purchase of annuities or increased income and resource allowances for the healthy spouse.

Called for Jury Duty? You May Be Excused Based on Your Age

 

In many states, seniors have the right to decline jury duty based on their age. But the age limits and rules vary by state and by type of court, so if you are summoned for jury duty, check with the court to determine if you are exempt.

The majority of states have a rule in place that allows individuals over a certain age to choose not to serve on a jury if called. How this works varies by state and by court. Some states allow anyone over a certain age to be permanently exempted; other states allow seniors to be excused from serving if they are called. Some states require notice in writing; other states have a box the senior can check on the jury summons form. The ages at which seniors can be exempted or excused are 65 (Mississippi and South Carolina), 70 (Alabama, Alaska, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, Nevada, Oklahoma, Oregon, Texas, Virginia, and West Virginia), 72 (North Carolina and Wyoming), 75 (Arizona, Indiana, New Jersey, New Mexico, New York, Ohio, and Pennsylvania), and 80 (Hawaii and South Dakota).

Some states have more complicated rules regarding seniors and jury duty. In Nevada, for example, everyone over age 65 who lives 65 miles or more away from the court is exempt from serving on a jury. Once you reach age 70 in Nevada, you are exempt from serving on a jury no matter where you live. In California, individuals with a permanent health problem can be exempted from jury duty, but if you are 70 years or older, you don't need a doctor's verification of the health problem.

Each of the federal district courts has its own rules about jury service. Many federal courts offer excuses from service, on individual request, to designated groups, including people over age 70.

What Is Required of an Executor?

 

Being the executor of an estate is not a task to take lightly. An executor is the person responsible for managing the administration of a deceased individual's estate. Although the time and effort involved will vary with the size of the estate, even if you are the executor of a small estate you will have important duties that must be performed correctly or you may be liable to the estate or the beneficiaries.

The executor is either named in the will or if there is no will, appointed by the court. You do not have to accept the position of executor even if you are named in the will.

The average estate administration takes one year, though you won't need to work full time on it. Following are some of the duties you may have to perform as executor:

• Find documents. If there is a will, but you don't already know where the will is or the will hasn't already been brought to court, you may need to find it among the deceased's belongings. If all you have is a copy of the will, you may need to get the original from the lawyer who drafted it. You will also need to get a copy of the death certificate.
• Hire an attorney. You are not required to hire an attorney, but mistakes can cost you money. You may be personally liable if something goes wrong with the estate or the payment of taxes. An attorney can help you make sure all the proper steps are taken and deadlines met.
• Apply for probate. If there is a will, the court will grant you letters testamentary. If there is no will, you will receive letters of administration. This will officially begin your work as the executor.
• Notify interested parties. Notify the beneficiaries of the will, if there is a will, as well as any potential heirs (such as children, siblings, or parents who may or may not be named in a will). In addition, you will have to place an advertisement for potential creditors in a newspaper near where the deceased lived.
• Manage the deceased's property. You will need to prepare a list of the deceased's assets and liabilities, and you may need to collect any property in the hands of other people. One of the executor's jobs is to protect the property from loss, so you will need to assure the property is kept safe. You will also need to hire an appraiser to find out how much any property is worth. In addition, if the estate includes a business, you may have to make sure the business continues to run.
• Pay valid claims by creditors. Once the creditors are determined, you will need to pay the deceased's debts from the estate's funds. The executor is not personally liable for deceased's debts. The estate usually pays any reasonable funeral expenses first. Other debts include probate and administration fees and taxes as well as any valid claims filed by creditors.
• File tax returns. You need to make sure the tax forms are filed within the time frame set under the law. Taxes will include estate taxes and income taxes.
• Distribute the assets to the beneficiaries. Once the creditors' claims are clear, the executor is responsible for making sure the beneficiaries get what they are entitled to under the will or under the law, if there is no will. You may be required to sell property in order to fulfill legacies in a will. In addition, you may have to set up any trusts required by the will.
• Keep accurate records. It is very important to keep accurate records of everything you do. You will need to create a final accounting, which the beneficiaries must review before the distribution of the estate can be finalized. The accounting should include any distributions and expenses as well as any income earned by the estate since the deceased died.
• File the final accounting with the court. Once the final accounting is approved by the beneficiaries and the court, the court will close the estate. File a final report with the court and close the estate.