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 designated 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 in the event of a loss, 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's Member Privileges and Conditions state: "Your membership card is valid at any Costco warehouse worldwide and is not transferable" and "Cards remain the property of Costco and must be returned upon request." The same page gives one designated household member a free card: "Primary and Affiliate Members receive one additional card for one designated member of their household, who is 16 years of age or older and living at the same address." Costco also publishes a "Deceased Primary" path in its Member Services knowledge base: "There are several ways to change the Primary Cardholder for a membership in the event of a loss" — at a warehouse membership desk, by fax to 425-313-6870 (Attn: Member Services), or by mail to Costco Wholesale, Attn: Member Services, 800 Lake Drive, Issaquah, WA 98027, in each case with the membership number, the requester's name, their relationship to the primary member, and contact information. Costco publishes no document list beyond those four items, no death-certificate requirement, and no estates department. 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, whose printed date "is the date the Reward was issued. It is not an expiration date," which can be redeemed only while making a purchase or renewing a membership and only by an active member; 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 on cancellation or downgrade of an Executive Membership, "Any 2% Reward issued or accrued will be subtracted from the refund and forfeited to the extent it exceeds the amount of any refund." A separate liability runs in the background: membership fees auto-renew on the first day of the renewal month unless Auto Renewal is removed at least 72 hours beforehand. The current annual fees are $65 for Gold Star and $130 for Executive ($65 membership fee plus a $65 upgrade fee).