Estate planning as a Costco account holder

A Costco membership is a paid annual warehouse-club membership (Gold Star or Executive) tied to a named Primary Member, with a free Household Card for one household member 16 or older living at the same address. The estate-relevant assets are the membership itself, any Executive 2% annual reward certificate the account has earned, and any Costco Shop Card (stored value). The membership card is non-transferable, but Costco lets the Primary Cardholder be changed when the primary member dies, so a surviving household member can usually continue the membership instead of losing it.

After a Costco account holder dies, family members can receive the remaining membership through a complimentary transfer process.

The program allows membership to be purchased as gifts, giving members a way to share value with others. Members can also redeem membership on behalf of someone else.

What happens at death

The membership card is non-transferable, but a Costco membership does not simply end when the primary member dies. Costco issues a free Household Card to one designated household member who is 16 or older and lives at the same address, and that person can continue using the membership. Costco also publishes a "Deceased Primary" path: the Primary Cardholder can be changed in the event of a loss, so a surviving spouse or household member can have the membership reissued in their name at a warehouse membership desk (the warehouse may request a copy of the death certificate), by faxing Member Services at 425-313-6870, or by mailing Member Services the same information — in each case with the membership number, the requester's name, the requester's relationship to the primary member, and contact information. If the membership is instead cancelled, the fee is refundable in full at any time under Costco's Risk-Free 100% Satisfaction Guarantee on Membership ("We will cancel and refund your membership fee at any time if you are dissatisfied"), with an immediate refund at any warehouse counter or by calling Member Services. Two stored-value assets sit alongside the membership: the Executive 2% annual reward certificate, which never expires and can be redeemed only by an active member toward a purchase or a renewal, and any Costco Shop Card, which never expires and may be used by members and non-members alike. The 2% reward and the fee refund are not cumulative: Costco states that if an Executive Membership is cancelled or downgraded, "Any 2% Reward issued or accrued will be subtracted from the refund and forfeited to the extent it exceeds the amount of any refund." The current annual fees are $65 for Gold Star and $130 for Executive ($65 membership fee plus a $65 upgrade fee).