Successor in Interest. If the Account Owner dies before the entire interest in the account is distributed, the entire account will be disposed of as follows: • If the Beneficiary is the Account Owner’s spouse, the HSA will become the spouse’s HSA as of the date of death. • If the Beneficiary is not the Account Owner’s spouse, the HSA will cease to be an HSA as of the date of death. If the Beneficiary is the Account Owner’s estate, the fair market value of the account as of the date of death is taxable on the Account Owner’s final return. For other Beneficiaries, the fair market value of the account is taxable to that person in the tax year that includes such date.
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Samples: Scope of Agreement, Scope of Agreement, Scope of Agreement
Successor in Interest. If the Account Owner dies before the entire interest in the account is distributed, the entire account will be disposed of as follows: • If the Beneficiary is the Account Owner’s 's spouse, the HSA will become the spouse’s 's HSA as of the date of death. • If the Beneficiary is not the Account Owner’s 's spouse, the HSA will cease to be an HSA as of the date of death. If the Beneficiary is the Account Owner’s 's estate, the fair market value of the account as of the date of death is taxable on the Account Owner’s Own- er's final return. For other Beneficiaries, the fair market value of the account is taxable taxa- ble to that person in the tax year that includes such date.
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