What to do when a Optum Bank account holder dies
Contact Optum Bank — 4-step process, 8 required documents, and spouse beneficiary transfers are typically processed within 4-6 weeks after all required documentation is received. non-spouse beneficiary distributions and estate distributions may take 6-8 weeks. any hsa investments must be liquidated before distribution, which may extend the timeline.
Customer Service
Optum Bank, P.O. Box 271629, Salt Lake City, UT 84127-1629
Customer Service
Optum Bank, P.O. Box 271629, Salt Lake City, UT 84127-1629
Death Claims / Beneficiary Distributions
Optum Financial, P.O. Box 85960, 6300 Wayne Road, Westland, MI 48185 (HSA Death Distribution Request Form and required documents)
When an account holder at Optum Bank passes away, the next step depends on how the 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 Optum Bank's Death Claims / Beneficiary Distributions (1-866-234-8913) to access and distribute the funds.
To start a claim, contact Optum Bank by phone at 1-866-234-8913 or email documentation to accountholderservices@optum.com. You will need the account holder's full name, account numbers, and a certified death certificate.
Death claim process
Follow these steps to file a death claim with Optum Bank:
Filing a claim
- Notify Optum Bank of the account holder's death by calling customer service at 1-866-234-8913 (available 24/7)
- Provide the deceased account holder's full legal name, date of birth, date of death, and account information
- Optum Bank will freeze the account and initiate the death distribution process
- Request the HSA Death Distribution Request Form (available from Optum Financial)
- Complete the Death Distribution Request Form with beneficiary or estate representative information
- Submit a certified copy of the death certificate along with the completed form
- If a surviving spouse is the designated beneficiary: the HSA transfers to the spouse as their own HSA (tax-free transfer per IRC 223(f)(8)(A))
- If a non-spouse individual is the designated beneficiary: Optum distributes the fair market value to the beneficiary (taxable income to the beneficiary in the year of death)
- If no beneficiary is designated: funds are distributed to the surviving spouse or, if none, to the estate
- If the estate is the beneficiary: the fair market value is included on the decedent's final tax return (Form 1040)
Required Documents
- Certified copy of the death certificate
- Completed HSA Death Distribution Request Form
- Government-issued photo ID for the beneficiary or estate representative
- Copy of the beneficiary's/claimant's unexpired driver's license or state-issued ID
- Letters Testamentary or Letters of Administration (if claiming on behalf of the estate)
- Small Estate Affidavit (if estate qualifies under applicable state law and no probate is opened)
- Trust documentation (if a trust is the designated beneficiary)
- Transfer Form from the receiving HSA custodian (if a spouse elects to roll the HSA into their own account)
What to know at this institution
Optum Financial can only distribute HSA funds to individuals listed as beneficiaries. If no beneficiary is designated at the time of death, funds are distributed only to the estate executor. The HSA Death Distribution Request Form (form 136694A, mailed to Optum Financial, P.O. Box 85960, 6300 Wayne Road, Westland, MI 48185) has four claimant sections completed based on relationship: Part A (spousal beneficiary), Part B (non-spousal individual, company, or trustee of a trust beneficiary), Part C (executor/administrator/personal representative of the estate), and Part D (small-estate recipient). The Death Distribution Request Form, an original certified death certificate, and a copy of the claimant's unexpired driver's license or state-issued ID are required for every claim; estate claimants must also enclose Letters of Administration/Testamentary, and small-estate recipients a Small Estate Affidavit. Optum HSAs are offered or administered through ConnectYourCare, LLC, an IRS-designated non-bank custodian of HSAs and subsidiary of Optum Financial, Inc. SPOUSE BENEFICIARY: The HSA transfers to the surviving spouse as their own HSA, preserving the tax-advantaged status. The spouse can continue to use the funds tax-free for qualified medical expenses. On the form the spouse elects either to liquidate and receive the funds or to transfer them into their own new or existing Optum Financial HSA (open one at https://enroll.hsaexpress.com/). NON-SPOUSE BENEFICIARY: The account ceases to be an HSA as of the date of death. The fair market value is included in the beneficiary's gross income for the year of death. The beneficiary may deduct any qualified medical expenses of the decedent that are paid within one year of death (IRC 223(f)(8)(B)). ESTATE/TRUST BENEFICIARY: The fair market value is included on the decedent's final Form 1040. Form 1099-SA is issued to report the death distribution. If the HSA held investments, the investment positions must be liquidated and converted to cash before distribution.
Prepare your letter of instruction to Optum Bank
Optum Bank 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 instructionOpening an account for the estate itself
Checks made out to the estate deposit into an account titled to the estate, opened by the appointed executor or administrator under the estate's EIN.
Does Optum Bank offer estate accounts? →Processing timelines at Optum Bank: Spouse beneficiary transfers are typically processed within 4-6 weeks after all required documentation is received. Non-spouse beneficiary distributions and estate distributions may take 6-8 weeks. Any HSA investments must be liquidated before distribution, which may extend the timeline. Incomplete documentation is the most common cause of delays—submitting all required documents with the initial claim helps avoid additional processing time.
Documentation required by Optum Bank includes Certified copy of the death certificate, Completed HSA Death Distribution Request Form, and Government-issued photo ID for the beneficiary or estate representative, along with additional paperwork that varies by account type. All death certificates and court documents must be certified copies.
Frequently asked questions
The tax treatment depends on who is named as beneficiary. If your surviving spouse is the designated beneficiary, the HSA transfers to them as their own HSA, preserving the tax-advantaged status (IRC 223(f)(8)(A)). If a non-spouse individual is the beneficiary, the account ceases to be an HSA as of the date of death and the fair market value is included in the beneficiary's gross income. If no beneficiary is named, funds default to your surviving spouse (if any) or to your estate, where the value is included on your final tax return.
Optum Bank offers Health Savings Accounts (HSAs), Health Care Flexible Spending Accounts (FSAs), Limited Purpose FSAs, Dependent Care FSAs, Health Reimbursement Arrangements (HRAs), Medicare Advantage Medical Savings Accounts (MSAs), and Commuter Benefits accounts. HSAs are the primary product with estate planning implications because they allow beneficiary designations and have unique tax treatment at death.
If no beneficiary is designated on an Optum Bank HSA, the account first defaults to the surviving spouse (if any), who inherits it as their own HSA with continued tax-advantaged status under IRC 223(f)(8)(A). If there is no surviving spouse, the HSA ceases to be an HSA as of the date of death and the full fair market value is included on the decedent's final Form 1040 tax return. The estate executor must obtain Letters Testamentary or Letters of Administration to claim the funds, and the estate pays ordinary income tax on the entire balance. Naming any beneficiary, even a contingent one, almost always produces a better tax result than relying on the default.
Optum Bank's Death Claims / Beneficiary Distributions can be reached by phone at 1-866-234-8913 and email at accountholderservices@optum.com for questions throughout the claims process.
If the deceased held multiple Optum Bank accounts, each may require a separate claim or have different documentation requirements. The Death Claims / Beneficiary Distributions can confirm which accounts require individual attention and which can be processed together.
Sources
Data sourced from Optum Bank primary sources (11 pages reviewed). How we research.
Customer Service
Optum Bank, P.O. Box 271629, Salt Lake City, UT 84127-1629
Customer Service
Optum Bank, P.O. Box 271629, Salt Lake City, UT 84127-1629
Death Claims / Beneficiary Distributions
Optum Financial, P.O. Box 85960, 6300 Wayne Road, Westland, MI 48185 (HSA Death Distribution Request Form and required documents)
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