What to do when a Further account holder dies

If anyone other than your spouse is the beneficiary, the HSA ends on the date of your death. The account is closed and the remaining balance is paid to the beneficiary by administrative check. The value of the HSA becomes taxable to that beneficiary in the year of death.

If no beneficiary is named and you are married at the time of death, your spouse is deemed the beneficiary and can keep the account as their own HSA. If you are not married and no beneficiary is on file, the account passes to your estate, the HSA ends as of the date of death, and its value is taxable to the estate on the accountholder's final income tax return.

Yes. Before the account is closed or transferred, the beneficiary or estate administrator can file claims for the accountholder's unclaimed eligible medical expenses incurred before the date of death, such as copays, deductibles, prescriptions, and other qualified costs. The estate administrator completes the HSA Withdrawal Request form to do this. Amounts paid for those expenses are not taxable.

Contact Further Member Services at 800-859-2144 to report the death and request death distribution instructions. Further requests a death certificate and proof of identity for the spouse and beneficiaries, plus the HSA Transfer Form (spouse) or HSA Close Account Request Form (non-spouse or estate). Documents can be submitted by secured email to further.documents@hellofurther.com, by fax to 866-231-0214, or by mail to Further, P.O. Box 64193, St. Paul, MN 55164-0193.

A trust can be named on an HSA beneficiary designation. A trust does not receive the tax treatment available to a surviving spouse: when the HSA passes to anyone other than a spouse, the account ends on the date of death and its value is taxable. Further directs members to consult a tax or legal advisor before naming a trust as HSA beneficiary.