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What happens to my HSA in the event of my death?

  • Spouse Beneficiary—If your spouse is the beneficiary of your HSA, the HSA becomes his/her HSA.
  • Nonspouse Beneficiary—If your beneficiary is not your spouse, the HSA ceases to be an HSA as of the date of your death. If your beneficiary is your estate, the fair market value of the HSA as of the date of your death is included as income on your final income tax return. For other beneficiaries, the fair market value of your HSA is included as income for the recipient in the tax year of your death.