What to do when a Lively account holder dies
Contact Lively — 6-step process, and 4 required documents
When an account holder at Lively 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 Lively's Lively Support (1-888-576-4837) to access and distribute the funds.
Death claims at Lively can be started through an online portal, which streamlines the initial notification and document upload. Phone options are also available.
Death claim process
To file a claim after an account holder's death, here is what Lively requires:
Filing a claim
Required Documents
- A certified copy of the death certificate
- The beneficiary's identifying information
- Certified Letters Testamentary or Letters of Administration (if the estate is the beneficiary)
- Trust documentation identifying the trustee (if a trust is the beneficiary)
What to know at this institution
Lively is primarily an email/portal and phone service; the beneficiary or executor first notifies Lively Support (support@livelyme.com or 1-888-576-4837), and Lively supplies the death distribution instructions and a fair-market-value statement for the estate. The spouse vs. non-spouse tax distinction is the controlling estate fact: a surviving spouse keeps the account as their own HSA with no tax on the transfer; a non-spouse beneficiary takes the fair market value as taxable income and the account stops being an HSA at death; an estate beneficiary reports the value on the decedent's final income tax return. A non-spouse beneficiary can reduce the taxable amount by the accountholder's qualified medical expenses paid within 12 months of death. Lively directs members to consult a tax or legal advisor for their situation.
Prepare your letter of instruction to Lively
Lively accepts a claimant-drafted letter of instruction. We draft it for you — addressed to Lively's verified claims department, with the documents it requires enclosed.
Build your letter of instructionTo process a claim, Lively needs A certified copy of the death certificate, The beneficiary's identifying information, Certified Letters Testamentary or Letters of Administration (if the estate is the beneficiary), and Trust documentation identifying the trustee (if a trust is the beneficiary). Death certificates and court documents must be certified copies—photocopies are not accepted.
Frequently asked questions
If the beneficiary is someone other than a spouse, the HSA ends on the date of death. The funds are distributed and the fair market value of the account on the date of death is taxable income to the beneficiary. The beneficiary can use the funds to pay the accountholder's qualified medical expenses for up to 12 months after death without tax on those amounts.
The surviving spouse, an adult child, or the executor of the estate notifies Lively of the death by contacting Lively Support at support@livelyme.com or 1-888-576-4837. Lively provides the death distribution instructions and prepares a document stating the fair market value of the account as of the date of death. Lively typically requests a certified death certificate and the beneficiary's identification; an estate provides Letters Testamentary or Letters of Administration, and a trust beneficiary provides trust documentation.
Lively offers investing on the HSA balance through a self-directed Schwab Health Savings Brokerage Account or a guided portfolio managed by Devenir. Invested balances pass under the same HSA beneficiary designation as the cash account, so the spouse, non-spouse, or estate treatment applies to the full account value at death.
Lively's Lively Support can be reached by phone at 1-888-576-4837 and email at support@livelyme.com for questions throughout the claims process.
Sources
Data sourced from Lively primary sources (6 pages reviewed). How we research.
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