Notifying UMB Healthcare Services of an HSA Accountholder Death
Dealing with the death of a family member or friend can be an emotionally trying time. To help you through the process of notifying UMB when an accountholder has passed, please review the information below.
When an HSA is opened, one or more beneficiaries may be designated for the account. In certain states, a spouse’s consent may be necessary if a person other than, or in addition to the spouse, is named a beneficiary or to change an existing beneficiary designation. Accountholders may wish to consult with their attorney before making a beneficiary designation.
What happens to the HSA upon accountholder’s death?
The treatment of an HSA upon the death of an accountholder depends on who is the designated beneficiary.
- If the spouse is the designated beneficiary, it will be treated as the spouse’s HSA after death.
- If the beneficiary is someone other than the spouse, the account will no longer be treated as an HSA upon death. The fair market value of the HSA will pass to the beneficiary or becomes part of the estate and becomes taxable to the beneficiary in the year of the death.
To be a valid beneficiary designation, UMB must have on file the completed UMB HSA Beneficiary Designation form prior to the accountholder’s death. In the absence of a valid beneficiary designation, UMB will distribute the assets comprising the HSA upon accountholder death to their estate.
How to begin
The first step is to collect the deceased's full legal name, Social Security number, HSA account number(s), certified death certificate, and any other Additional Information (as detailed below)that can help identify the HSA account(s) impacted. Additionally, UMB requires the claimant to complete, sign and return the HSA Account Payout and Closing Form
If you have any questions about this process, please contact our customer service team at 866.520.4472, Monday–Friday, 7:00 a.m. – 7:30 p.m. CT, Saturday, 8:00 a.m. – 5:00 p.m. CT to discuss next steps or your specific situation.
You may want to obtain multiple copies of the certified death certificate in case you need to provide it to other agencies or for accounts at other financial institutions. You can acquire the death certificate from the funeral director who assisted with funeral arrangements, or from the Registry of Births, Deaths and Marriages in the appropriate state.
After UMB has received the death certificate, we may require additional forms depending on the type of accounts impacted. Whether or not additional documents will be necessary is determined on your specific circumstances. We can help you determine the documentation needed and can point you in the right direction to locate those documents. You can also work with your legal advisor, attorney or accountant to compile the necessary materials. Examples of additional documents needed could include letters testamentary, letter of administration, or a small estate affidavit. See details of these documents below.
Letters Testamentary/Letter of Administration:
These documents validate the HSA accountholder and confirm the individual that will handle the estate now that the accountholder has passed. The letters testamentary, or letter of administration, are necessary, in some cases, if formal validation of an estate is required by state law.
Small Estate Affidavit:
The necessity of a small estate affidavit varies from state to state. This document may help speed up the resolution of the estate through probate court and may be used to dissolve a deceased customer's HSA account when formal validation is not required under state law.
Provide Documentation to UMB
After you have collected all the necessary documents, please contact UMB Healthcare Services at 866.520.4472 for further direction or submit the documents using one of the methods below. Be certain to include contact information for UMB Healthcare Services to reach you with any questions.
Fax to our secure document server:
1010 Grand Blvd
ATTN: HCS Operations 5th Floor MS 1020502
Kansas City MO 64106
Keep in Mind
Every situation is different and process time varies depending on account structure. UMB will begin the account transfer or dissolution process as soon as all documents are received.
We understand this can be a challenging time, and we hope the information provided has been helpful as you determine the first steps to notify UMB. Please contact us at 866.520.4472 if you have any questions about this process and we will assist you however we can.
Additional Resources that may be helpful: