Overview
Fidelity Investments is one of the largest asset managers in the world, administering millions of Health Savings Accounts (HSAs) and brokerage accounts. When an account holder passes away, the estate representative or beneficiary must notify Fidelity's Transition Services team to secure the assets and initiate the transfer process.
This guide specifically covers Fidelity's process for HSAs and other investment accounts. Crucial Note for HSAs: The tax treatment of an HSA after death depends entirely on who the beneficiary is. If the spouse is the beneficiary, it remains an HSA. If anyone else is the beneficiary, the account stops being an HSA and the fair market value becomes taxable income to the beneficiary.
Fidelity offers a dedicated online notification tool and a specialized Transition Services department to assist with these complex rules.
This guide provides informational guidance only. It is not legal advice, and SwiftProbate is not a law firm. Laws and institutional procedures change — verify current requirements directly with Fidelity and consider consulting a qualified attorney.
Notification Process
How to Notify Fidelity of a Death
Step 1: Gather Initial Information
Before contacting Fidelity, have the following ready:
- Decedent's full legal name and date of birth
- Date of death
- Social Security number
- Account numbers (if known)
- Your name and relationship to the decedent
- A certified copy of the death certificate (electronic copy for online upload)
Step 2: Notify Fidelity (Online or Phone)
Option A: Online Notification (Recommended)
Fidelity allows you to report a death and upload documents digitally, which is often faster than mailing.
- URL: Fidelity Death Notification
- You will need to create a secure login or use your existing Fidelity login.
Option B: Call Transition Services
Contact Fidelity's dedicated Transition Services team:
- Phone: (800) 544-4374
- Hours: Mon–Fri, 8:00 AM – 8:00 PM ET
When you reach an agent, they will:
- Verify the decedent's identity
- Place a deceased flag on the account(s), freezing trading and withdrawals
- Open a case file and provide a case reference number
- Explain the specific tax implications for the HSA based on the named beneficiary
Step 3: Submit Required Documents
If you did not upload documents online, mail them to Fidelity's processing center.
Regular Mail:
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
Overnight/Express Mail:
Fidelity Investments
100 Crosby Parkway
Covington, KY 41015
Step 4: Wait for Processing
After Fidelity receives your documents, expect:
- Document review: 3–5 business days
- Account opening/transfer: 5–10 business days after approval
Step 5: Receive Funds / Transfer Assets
Once approved, the process differs by beneficiary:
- Spouse: Assets move to a Spousal HSA in their name.
- Non-Spouse: A check or non-HSA brokerage account is opened, and a 1099-SA is issued for tax purposes.
Required Documents
Documents Fidelity Requires
The exact documents depend on account type, account value, and whether the estate is going through probate.
Always Required
| Document | Details |
|---|---|
| Certified death certificate | Original or clear copy (if uploaded online) |
| Government-issued photo ID | Of the person claiming the account |
| Fidelity Transition Form | Specific to the account type (provided by Fidelity) |
HSA Specific Documents
| Document | Details |
|---|---|
| HSA Distribution Form | Required for non-spouse beneficiaries to liquidate the account |
| Spousal HSA Application | If the spouse is assuming the account |
If There Is a Will (Testate Estate)
| Document | Details |
|---|---|
| Letters Testamentary | Issued by the probate court — must be certified and dated within 60 days |
| Copy of the will | Often required if no beneficiary is named |
| EIN (Employer Identification Number) | For the estate, if opening an estate account |
If There Is No Will (Intestate Estate)
| Document | Details |
|---|---|
| Letters of Administration | Issued by the probate court |
| EIN | For the estate |
Trust Accounts
| Document | Details |
|---|---|
| Trustee Certification | Fidelity's specific "Certification of Trust" form is often required |
| Successor Trustee ID | Government-issued photo ID |
Account Types
How Fidelity Handles Different Account Types
Health Savings Accounts (HSA)
Spouse Beneficiary: The HSA is treated as the surviving spouse's own HSA. No taxes are due, and the funds remain tax-advantaged.
Non-Spouse Beneficiary: The account ceases to be an HSA on the date of death. The fair market value is taxable income to the beneficiary.
Estate as Beneficiary: The value is included in the decedent's final income tax return.
Timeline: 5–15 business days
Joint Accounts (JTWROS)
The surviving joint owner typically needs only a certified death certificate to have the decedent's name removed. The account usually converts to an individual account for the survivor.
Timeline: 3–5 business days
POD / TOD Beneficiary Accounts
Named beneficiaries claim funds with a death certificate and ID. No probate is required. Fidelity will open a "Beneficiary Distribution Account" (BDA) or issue a check.
Timeline: 5–10 business days
Individual Accounts (Probate Required)
Accounts held solely in the decedent's name with no beneficiary designation require Letters Testamentary or Letters of Administration from probate court.
Timeline: 3–6+ months (depending on court process)
Retirement Accounts (IRA, 401(k))
Named beneficiaries must open an Inherited IRA (Beneficiary Distribution Account). Distribution rules (10-year rule vs. stretch) depend on the beneficiary's relationship to the deceased under the SECURE Act.
Timeline: 5–10 business days
State Considerations
How Your State Affects the Fidelity Process
Fidelity operates nationally, but probate is governed by state law. Your state determines:
- Whether probate is required and how long it takes
- Small estate thresholds — estates below certain values can skip formal probate
- Community property rules — in community property states (AZ, CA, ID, LA, NV, NM, TX, WA, WI), a spouse may have rights to the account even if not named as a beneficiary.
Key State Variations
| State | Small Estate Threshold | Community Property? | Notable Rules |
|---|---|---|---|
| California | $208,850 | Yes | Spousal property petitions can speed up transfer |
| Texas | $75,000 | Yes | Muniment of Title is a faster probate option |
| Florida | $75,000 | No | "Summary Administration" available for small estates |
| New York | $50,000 | No | Voluntary Administration for small estates |
For detailed probate requirements, see our state and county probate guides.
Timelines
How Long Fidelity Takes to Release Funds
| Account Type | Estimated Timeline | Key Factor |
|---|---|---|
| HSA (Spouse) | 5–10 business days | Simple transfer to new HSA |
| HSA (Non-Spouse) | 10–15 business days | Taxable distribution processing |
| Joint account | 3–5 business days | Just need death certificate |
| POD/TOD beneficiary | 5–10 business days | Beneficiary claim form + death cert |
| Trust account | 10–20 business days | Trust review by legal team |
| Probate (simple estate) | 3–6 months | Depends on court processing time |
| Probate (complex estate) | 6–18+ months | Disputes, taxes, or multiple jurisdictions |
Fidelity's "Transition Services" team is generally efficient, but missing documents or unclear beneficiary designations will pause the clock.
Tips & Pitfalls
Common Pitfalls and Tips
HSA Tax Trap for Non-Spouses
If you are a non-spouse beneficiary of an HSA, do not use the funds for medical expenses incurred after the death. The account is no longer an HSA, and the money is just cash (taxable as income). You can, however, use the funds to pay for the decedent's qualified medical expenses incurred before death, if paid within one year.
Do Not Sell Assets Immediately
Once notified, Fidelity freezes the account. Do not attempt to log in with the deceased's credentials to sell stock or mutual funds. This is unauthorized access and can cause tax reporting errors.
Cost Basis Step-Up
For taxable brokerage accounts (not HSAs or IRAs), the assets typically receive a "step-up" in cost basis to the value on the date of death. This eliminates capital gains tax on appreciation that occurred during the decedent's life.
Keep the Case Number
Fidelity assigns a Case Reference Number when you first call. Keep this handy for every follow-up call to skip the general queue.
Automatic Investments
Be aware that automatic investments (SIP) and withdrawals (SWP) stop immediately upon notification. Ensure other bills paid from these accounts are covered.