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I don't think AEPhi has a formal policy regarding what happens to your badge when you die. If I have a daughter or granddaughter who joins AEPhi, she gets my badge... otherwise it will probably just end up getting passed down through my family. I do NOT want it ending up on ebay!
If you deactivate, you are supposed to return your badge. It's only really enforced for active sisters who deactivate, though - you return your badge to the chapter and they send it back.
What I'm having trouble figuring out, is what to do with my local sorority's badge. I can't wear it because I'm an AEPhi now, and anyway, the group it represents no longer exists... I don't want to give it away during my lifetime, but who should get it when I pass on?
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