Deceased spouse’s HSA account
My husband has an HSA and has sinced passed away. He did not establish beneficiaries on this account and it is still held with the custodian. I am 72 years old and want to know what my options are as his surviving spouse. Can I roll it over to my IRA? To my HSA? Is it now payable to the estate?
Permalink Submitted by Alan - IRA critic on Tue, 2013-11-05 21:35
Check the documents to determine the default beneficiary. If it is the surviving spouse, the account will be retitled as yours. However, more likely the beneficiary will be his estate and the value would then be included on your final joint return for the year of death. The account would cease to be an HSA and would be distributed to his estate. See p 10 of Pub 969 here:http://www.irs.gov/pub/irs-pdf/p969.pdf
Permalink Submitted by Anthony LaJeunesse on Wed, 2013-11-06 17:22
I do not have the HSA documents and the custodian only offered me a claims kit; they would not disclose any account information to me. Also, my husband passed away in 2012 and the final tax return has already been filed. If I pursue this matter and the account has to be paid to the estate, how could this affect me taxwise?
Permalink Submitted by Alan - IRA critic on Wed, 2013-11-06 18:33
They should disclose HSA provisions to the executor of his estate, since the HSA is likely payable to the estate. If they indicate that it is NOT payable to the estate, as surviving spouse you should then ask them if it is payable to you. Most likely, it is payable to his estate. You should insist on talking to senior staff of this HSA custodian, as the beneficial interest under the plan has a right to the distribution, and the custodian should want this resolved and off their books. As for the 2012 tax return, if the funds are paid to the estate, it needs to be amended to include the taxable income on that return.