What happens to your health savings account (HSA) if you die?
Your health savings account will be passed on to your surviving spouse or named beneficiary.
- If your spouse is the recipient, no taxes will be assessed if the funds are used for qualified health expenses.
- If someone other than a spouse is the beneficiary, that person will have to pay any applicable taxes.
- If you are unmarried and do not have a named beneficiary, the money is disbursed to your estate and subject to any applicable taxes.
If you have a beneficiary listed on your HSA, your beneficiary will be able to submit an HSA Death Distribution Request Form along with a notarized copy of the death certificate, and request the HSA be sent to the estate. It may also be converted to an HSA in the surviving spouse’s name.
If no beneficiary is listed on your HSA, the state of Indiana requires the HSA distribution to be made to the estate of the deceased. Extra documentation may be requested to process a death distribution to an estate.
If you need assistance with completing the HSA Death Distribution Request Form, please contact WEX directly at +1-800-284-8412 or at IUSupport@wexinc.com.