What to do when a HSA Bank account holder dies
Report the death to HSA Bank's Client Assistance Center at 1-800-357-6246
HSA Bank has changed ownershipAcquired, effective August 2026
HSA Bank keeps its own brand, its own 24/7 Client Assistance Center, and its own forms, but the chartered bank behind it changed: it is now a division of Santander Bank, N.A. rather than Webster Bank, N.A. Banco Santander, S.A. completed its acquisition of Webster Financial Corporation on August 20, 2026, contributed the surviving entity to Santander Holdings USA, Inc., and merged Webster Bank, National Association into Santander Bank, National Association the same day, with Santander Bank the surviving bank (Webster Financial Form 8-K, August 20, 2026). FDIC BankFind records Webster Bank, N.A. (certificate 18221) as inactive with an end date of 08/20/2026 and Santander Bank, N.A. (certificate 29950) as active, so an HSA deposit balance is now insured through certificate 29950. Section L(b) of the HSA Custodial Agreement is the clause that carried the accounts across: if the organization holding the HSA "is bought by another organization, that organization ... shall automatically become the trustee or custodian of your HSA." Estate procedures, contacts, and forms below are HSA Bank's own and were re-verified after the close.
When an account holder at HSA Bank 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 HSA Bank's Client Assistance Center (1-800-357-6246) to access and distribute the funds.
The claim process can be initiated by phone at 1-800-357-6246 or by sending documentation to hsaforms@hsabank.com. Have the account holder's full name, account numbers, and the death certificate available when making initial contact.
Death claim process
The death claim process at HSA Bank works as follows:
Filing a claim
- The accountholder's full name, date of birth, and 8- or 12-digit HSA Bank account number or full Social Security number
- Your relationship: surviving spouse, non-spouse beneficiary, trustee of a beneficiary trust, or personal representative of the estate
Required Documents
- Certified copy of the death certificate
- Claimant's name, Social Security number and government-issued photo ID
- Signed letter of instructionStating the account number, the date of death, your capacity, and how the funds should be paid.
- Certified Letters Testamentary or Letters of Administration, if the estate is the beneficiary or no beneficiary is on file
- Trust instrument or certificate of trust, plus the trust TIN, if a trust is the beneficiaryThe trust document identifies the acting trustee.
What happens to each kind of account2
- Health savings account
If the spouse is the named beneficiary, "it will be treated as your spouse's HSA after your death." For any other beneficiary, including a trust, "the Account stops being an HSA, and the fair market value of the HSA becomes taxable to the beneficiary in the year in which you die."1
If the estate is the beneficiary, or no beneficiary is on file, "the value is included on your final income tax return," and the assets are distributed to the estate.1
- Investment account
An HSA Invest self-directed balance is part of the same HSA, not a separate investment account with its own beneficiaries, and its value counts in the fair market value that drives the tax result.2
HSA Bank may have DriveWealth sell the investment assets where required by law, including "to facilitate escheatment, garnishment, probate, or other court orders." The agreement warns that "you may also incur early redemption fees and/or other related brokerage fees."1
What HSA Bank's agreement and guidance say4
- What it does when notified
The Custodial Agreement lets HSA Bank block contributions on the "death of an accountholder."1
- What it says about taxes
Section K(d) of the Custodial Agreement says "the amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death."1
HSA Bank's Help center says those expenses must have been incurred after the HSA was opened and must not already have been reimbursed by the HSA.3
HSA Bank's Help center says a surviving spouse can use the money tax-free for qualified healthcare expenses, even if not enrolled in an HSA-eligible health plan, and that one under 65 who takes a distribution for anything else pays "a 20% penalty tax on the amount distributed plus income taxes."3
HSA Bank gives no tax or legal advice and directs accountholders to their own advisor.2
- Arbitration
The Custodial Agreement has an arbitration agreement with a jury-trial and class-action waiver that binds beneficiaries: claims "may not be consolidated or joined with claims of other persons who may have similar claims other than beneficiaries on your Account and/or related accounts."1
- Which state governs the account
Connecticut law governs where state law must be applied.1
Not in HSA Bank's published guidance2
- A claim form
- How long a claim takes
Sources3
HSA Bank's Client Assistance Center can be reached by phone at 1-800-357-6246 and email at hsaforms@hsabank.com for questions throughout the claims process.
Sources
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Data sourced from HSA Bank primary sources (15 pages reviewed). How we research.
HSA Bank death claims support
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Client Assistance Center (direct)
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