Questions and Answers
If a deceased HSA owner named his spouse as primary beneficiary, can the spouse beneficiary change the contingent beneficiaries named by the original HSA owner?
Under Internal Revenue Code 223(f)(8)(A), the spouse beneficiary of a deceased HSA owner becomes the HSA owner. Many financial organizations transfer the decedent’s HSA assets into an HSA for the surviving spouse, establishing a new one if the surviving spouse does not have an HSA. The surviving spouse may establish an HSA for the purpose of receiving this death transfer, even if he or she is not eligible to make regular HSA contributions.
As for changing beneficiaries, the surviving spouse is now an HSA owner and can name and/or change the beneficiaries on his/her HSA at any time.
(Posted: 02/20/2008)
