Common use of Beneficiary Issues Clause in Contracts

Beneficiary Issues. If you die and your beneficiary is your spouse, your HSA (or the relevant portion thereof) will become your spouse’s HSA as of the date of your death. If your beneficiary is not your spouse, the HSA (or the relevant portion thereof) will cease to be an HSA as of the date of your death. If the beneficiary is your estate, the fair market value of the account as of your date of death is taxable on your final tax return. For other beneficiaries, the fair market value of the account is taxable to that beneficiary in the tax year that includes the date of death.

Beneficiary Issues. If you die and your beneficiary is your spouse, your HSA (or the relevant portion thereof) will shall become your spouse’s HSA as of the date of your death. Your spouse is subject to income tax only to the extent distributions from your HSA are not used for qualified medical expenses. If your beneficiary is not your spouse, the HSA (or the relevant portion thereof) will cease account ceases to be an HSA as of and the date value of your death. If the beneficiary is your estate, the fair market value of the account as of HSA on your date of death is taxable on your final tax return. For other beneficiaries, the fair market value of the account is will be taxable to that your beneficiary in the tax year that includes the date of death.you die. Limitations & Restrictions