What to do when a HealthEquity account holder dies
Contact HealthEquity — 7-step process, 7 required documents, and healthequity reviews the form within two business days of verifying the deceased account holder; the check or transfer follows the selected option. any hsa investments are liquidated to cash first, which adds settlement time.
Member Services (HSA)
Phone1-866-346-5800
Mailing Address
HealthEquity, PO Box 14374, Lexington, KY 40512
FSA, LSA, HRA and commuter benefits
COBRA and direct bill
Not yet a member
WebsiteLearn more→
Member Services (HSA)
Phone1-866-346-5800
Mailing Address
HealthEquity, PO Box 14374, Lexington, KY 40512
FSA, LSA, HRA and commuter benefits
COBRA and direct bill
Not yet a member
WebsiteLearn more→
Member Services — HSA account closure due to death
Phone1-866-346-5800
Toll-Free1-866-346-5800
Fax1-801-727-1005
Mailing Address
HealthEquity, Attn: Member Services, PO Box 14374, Lexington, KY 40512
WebsiteNotify online→
Verified Jul 2026
When a HealthEquity account holder passes away, the next step depends on how the health savings accounts were set up. Accounts with beneficiary designations or trust ownership transfer outside of probate. Accounts titled solely in the deceased's name require the estate's legal representative to work with HealthEquity's Member Services — HSA account closure due to death (1-866-346-5800) to access and distribute the funds.
Death claims at HealthEquity can be started through an online portal, which streamlines the initial notification and document upload. Phone and mail options are also available.
Death claim process
Here is the step-by-step death claim process at HealthEquity:
Filing a claim
1
Call HealthEquity Member Services at 866-346-5800 (24/7/365) to report the death. There are no branches — everything is done by portal, mail, or fax
2
Get the form: "Health savings account (HSA) instructions upon death of account holder." It is downloadable at resources.healthequity.com/Forms/HSA_Instructions_Upon_Death_Form.pdf, and inside the member portal via the Support icon > Fill out a Form
3
Identify which fork applies — this drives the tax outcome, not just the paperwork:
- Surviving spouse (named, or deemed the beneficiary when none was named): the HSA becomes the spouse's own HSA. Options on the form are transfer to the spouse's existing HealthEquity HSA, open a new HealthEquity HSA and transfer, transfer to the spouse's HSA at another custodian, or close and take a check (a check is taxable to the extent it is not used for qualified medical expenses)
- Named non-spouse beneficiary: the only option on the form is close the HSA and send a check to the named beneficiary. The account STOPS being an HSA on the date of death and the full fair market value is taxable income to that beneficiary for the year of death (IRC Section 223(f)(8)(B))
- Estate (no beneficiary named and no surviving spouse, or the estate is the named beneficiary): HealthEquity liquidates and pays the estate, and the fair market value is reported on the decedent's FINAL income tax return rather than on a beneficiary's return
- Minor beneficiary: an adult guardian must hold and manage the funds until the beneficiary reaches the age of majority; HealthEquity requires guardianship paperwork plus proof of the parent/guardian relationship (birth certificate, adoption paperwork), and the check is issued to the estate or to the guardian in care of the minor
4
Reduce the tax before you file the claim: qualified medical expenses the decedent incurred before death and that are paid within 12 months of the date of death can be reimbursed from the HSA and are not taxable to the beneficiary (IRC Section 223(f)(8)(B)). Gather the decedent's unpaid medical bills before requesting closure
5
Mail or fax the completed form with a copy of the death certificate to HealthEquity, Attn: Member Services, PO Box 14374, Lexington, KY 40512, or fax 801-727-1005
6
HealthEquity liquidates any HSA investments to cash before processing — in-kind transfers of investments cannot be made, so the invested balance is sold at whatever the market is on the processing date
7
HealthEquity reviews the form within two business days of verifying the deceased account holder, then issues the check or transfer per the option selected. The decedent's HealthEquity Visa debit card (issued by The Bancorp Bank, N.A.) can no longer be used — a survivor must not spend from it after the date of death
Required Documents
- Completed "Health savings account (HSA) instructions upon death of account holder" form
- Copy of the death certificate
- Surviving spouse transferring to an outside HSA: a transfer request form from the receiving HSA trustee or custodian
- Surviving spouse with no HealthEquity ID: a HealthEquity HSA enrollment form
- Executor or personal representative: letters testamentary, a court appointment or decree, or a small estate affidavit (Affidavit for Collection of Personal Property)
- Guardian of a minor beneficiary: guardianship paperwork plus birth certificate or adoption paperwork
- For a trust beneficiary: trust certification or the trust pages establishing the trustee's authority to receive the funds
Claims Contact
What to know at this institution
The single most important fact: a HealthEquity HSA does not behave like an IRA. There is no stretch, no rollover, and no inherited-HSA. A surviving spouse keeps it tax-free as their own HSA. Any other beneficiary — child, sibling, friend, or trust — has the account terminate as an HSA on the date of death and must include the full fair market value in income for that year, reduced only by qualified medical expenses of the decedent paid within 12 months of death (IRC Section 223(f)(8)(B)). With no beneficiary and no spouse, the value lands on the decedent's final income tax return. Two custodial-agreement details matter to executors: (1) if a non-spouse beneficiary's address is unknown or incorrect, the designation is void and the money passes to the estate; (2) uncashed distribution checks are voided and returned to the account after 180 days, and HealthEquity may charge a maintenance fee to hold funds for a non-spouse beneficiary or an estate until claimed, so do not sit on the check. The HSA is not escheatable unless the member dies with no surviving spouse beneficiary.
Prepare your letter of instruction to HealthEquity
HealthEquity provides its own letter-of-instruction form. Answer a few questions and we complete that official form for you to print and sign.
Build your letter of instructionHow long the process takes at HealthEquity: HealthEquity reviews the form within two business days of verifying the deceased account holder; the check or transfer follows the selected option. Any HSA investments are liquidated to cash first, which adds settlement time. The most common reason for delays is missing or incomplete documentation, so submitting everything upfront is the best way to keep things moving.
HealthEquity requires several documents to process a claim, including Completed "Health savings account (HSA) instructions upon death of account holder" form, Copy of the death certificate, and Surviving spouse transferring to an outside HSA: a transfer request form from the receiving HSA trustee or custodian, and additional documentation depending on the account type. Certified copies are typically needed—photocopies are generally not accepted for death certificates or court documents.
Frequently asked questions
It depends entirely on who the beneficiary is, and the outcomes are very different. If your spouse is the beneficiary, the HSA becomes your spouse's own HSA and stays tax-free — no distribution, no tax. If a non-spouse is the beneficiary (a child, a sibling, a friend, or a trust), the account STOPS being an HSA on the date of your death and the entire fair market value becomes taxable income to that beneficiary in the year of death, reduced only by your qualified medical expenses paid within 12 months of death (IRC Section 223(f)(8)(B)). If no beneficiary is named and there is no surviving spouse, HealthEquity closes the account, pays your estate, and the value is reported on your FINAL income tax return. HealthEquity's custodial agreement says the custodian follows these rules strictly and points members to IRS Publication 969. Report a death to Member Services at 866-346-5800 (24/7).
Use the form titled "Health savings account (HSA) instructions upon death of account holder." An executor or personal representative checks the estate block, which offers one option: close the HSA and send a check. HealthEquity requires proof of your authority to act — letters testamentary, a court appointment or decree, or a small estate affidavit (Affidavit for Collection of Personal Property) — plus a copy of the death certificate. Mail or fax everything to HealthEquity, Attn: Member Services, PO Box 14374, Lexington, KY 40512, fax 801-727-1005. There are no branches. HealthEquity liquidates any HSA investments to cash first (no in-kind transfers) and reviews the form within two business days of verifying the deceased account holder. Do not let the check sit: under the custodial agreement, uncashed distribution checks are voided and returned to the account after 180 days.
Yes — HealthEquity allows it, both online (HSA tab > Beneficiaries > Add Beneficiary) and on the paper Beneficiary Designation Form, which has an explicit Estate/Trust checkbox. But understand what it costs: a trust is a NON-SPOUSE beneficiary for HSA purposes, so the account ceases to be an HSA on the date of death and the full fair market value is taxable income to the trust that year, with no rollover and no stretch. If you are married, naming your spouse directly as primary beneficiary is the only designation that preserves the tax shelter. A common structure is spouse as primary, trust as contingent, so the tax result only lands if your spouse does not survive you.
Yes, and this is the one lever a non-spouse beneficiary has. Qualified medical expenses the account holder incurred before death and that are PAID within 12 months of the date of death can be reimbursed from the HSA and are not taxable to the beneficiary (IRC Section 223(f)(8)(B)). Before requesting closure, gather the decedent's outstanding medical bills — final hospital, hospice, pharmacy, and provider invoices — and submit them for reimbursement so they come out of the balance rather than being taxed to the heir. There is no second chance once the account is closed and the check is issued.
HealthEquity's Member Services — HSA account closure due to death can be reached by phone at 1-866-346-5800 and fax at 1-801-727-1005 for questions throughout the claims process.
If the deceased held multiple HealthEquity health savings accounts, each may require a separate claim or have different documentation requirements. The Member Services — HSA account closure due to death can confirm which accounts require individual attention and which can be processed together.
Sources
Data sourced from HealthEquity primary sources (15 pages reviewed). How we research.
Member Services (HSA)
Phone1-866-346-5800
Mailing Address
HealthEquity, PO Box 14374, Lexington, KY 40512
FSA, LSA, HRA and commuter benefits
COBRA and direct bill
Not yet a member
WebsiteLearn more→
Member Services (HSA)
Phone1-866-346-5800
Mailing Address
HealthEquity, PO Box 14374, Lexington, KY 40512
FSA, LSA, HRA and commuter benefits
COBRA and direct bill
Not yet a member
WebsiteLearn more→
Member Services — HSA account closure due to death
Phone1-866-346-5800
Toll-Free1-866-346-5800
Fax1-801-727-1005
Mailing Address
HealthEquity, Attn: Member Services, PO Box 14374, Lexington, KY 40512
WebsiteNotify online→
Verified Jul 2026
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