Overview
UMB Bank (UMB Healthcare Services) is a leading provider of Health Savings Accounts (HSAs) and benefit spending accounts. When an HSA account holder passes away, the process for handling the funds depends heavily on who the designated beneficiary is.
This guide covers the specific steps to notify UMB Healthcare Services, the forms required to claim HSA funds, and the tax implications for spouses versus non-spouse beneficiaries. UMB operates nationally, so federal HSA rules generally apply alongside state probate laws where applicable.
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 UMB Bank and consider consulting a qualified attorney or tax professional.
Notification Process
How to Notify UMB Bank HSA of a Death
Step 1: Gather Initial Information
Before contacting UMB, have the following ready:
- Decedent's full legal name and date of birth
- Date of death
- Social Security number
- HSA account number (found on statements or debit card)
- Your name and relationship to the decedent
- A certified copy of the death certificate
Step 2: Call UMB Healthcare Services
Contact the UMB Healthcare Services support team to report the death and initiate the claim process:
- Phone: (866) 520-4472
- Hours: Mon–Fri, 7 AM – 7:30 PM CT; Sat, 8 AM – 5 PM CT
When you speak with a representative, they will:
- Verify the decedent's information
- Place a deceased flag on the account to freeze the debit card and online access
- Confirm the listed beneficiary (if any)
- Provide the HSA Deceased Distribution Form (or direct you to download it)
Step 3: Complete the HSA Deceased Distribution Form
This is the primary document required to release funds. You can typically find it on the UMB HSA Forms page.
- Spouse Beneficiary: Select the option to transfer the HSA to your own name (becoming your HSA).
- Non-Spouse Beneficiary: Select the option for a taxable distribution check.
- Estate: If no beneficiary is named, the executor must sign and request a distribution to the estate.
Step 4: Submit Required Documents
Mail or fax the completed form and death certificate to UMB.
Mail to:
UMB Bank
Attn: HSA Operations
P.O. Box 419226
Kansas City, MO 64141
Fax to:
(844) 560-6761
Step 5: Receive Funds
- Spouses: Funds are transferred to a new or existing UMB HSA in your name.
- Non-Spouses/Estates: A check is issued for the fair market value of the account as of the date of death (or date of distribution, depending on investment liquidation).
Required Documents
Documents UMB Bank HSA Requires
The documentation needed depends on who is claiming the funds.
Spouse Beneficiary
| Document | Details |
|---|---|
| Certified death certificate | One certified copy |
| HSA Deceased Distribution Form | Select "Spouse Transfer" option |
| Enrollment Form | If you do not already have a UMB HSA |
Non-Spouse Beneficiary
| Document | Details |
|---|---|
| Certified death certificate | One certified copy |
| HSA Deceased Distribution Form | Select "Distribution to Beneficiary" option |
| Government-issued photo ID | Copy of driver's license or passport |
| W-9 Form | To certify your Tax ID for the taxable distribution |
Estate (No Beneficiary)
| Document | Details |
|---|---|
| Certified death certificate | One certified copy |
| HSA Deceased Distribution Form | Signed by the Executor/Administrator |
| Letters Testamentary / Administration | Court documents proving your authority to act for the estate |
| EIN (Employer Identification Number) | For the estate (required for the 1099-SA tax form) |
Account Types
How UMB Handles HSA & FSA Accounts
Health Savings Account (HSA)
HSAs are trust accounts that pass directly to beneficiaries if named.
- Spouse Beneficiary: The HSA becomes the spouse's HSA. No taxes are due immediately.
- Non-Spouse Beneficiary: The HSA ceases to be an HSA on the date of death. The fair market value is taxable income to the beneficiary in the year of death.
- No Beneficiary (Estate): The funds are paid to the estate and are taxable on the decedent's final income tax return.
Timeline: 7–14 business days after documents are received.
Flexible Spending Account (FSA)
FSAs generally do not transfer.
- Medical FSA: Claims can usually be submitted for expenses incurred prior to the date of death. Any remaining balance is typically forfeited to the employer's plan.
- Dependent Care FSA: Similar rules apply; claims for care provided before death are eligible.
Timeline: Varies by employer plan rules.
Investment HSA
If the HSA funds were invested in mutual funds:
- Investments must be liquidated into cash before distribution.
- Market fluctuations between the date of death and date of liquidation may affect the final value.
- UMB will handle the liquidation once the Deceased Distribution Form is processed.
State Considerations
How Your State Affects the UMB Process
UMB Bank is based in Missouri but operates nationally. While federal IRS rules govern the tax treatment of HSAs, state probate law dictates who can claim the account if no beneficiary is named.
- Probate Thresholds: If the HSA is payable to the estate, you may need formal probate unless the total estate value is below your state's "small estate" limit.
- Community Property: In states like Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, a spouse may have rights to HSA funds even if they are not the named beneficiary.
Key State Variations
| State | Small Estate Threshold | Community Property? | Notable Rules |
|---|---|---|---|
| Missouri (UMB HQ) | $40,000 | No | UMB is familiar with MO small estate affidavits |
| California | $184,500 | Yes | Spousal consent often needed to name non-spouse |
| Texas | $75,000 | Yes | Community property laws apply |
For detailed probate requirements, see our state and county probate guides.
Timelines
How Long UMB Takes to Release Funds
| Account Type | Estimated Timeline | Key Factor |
|---|---|---|
| HSA (Spouse Transfer) | 5–10 business days | Fastest option; internal transfer |
| HSA (Beneficiary Payout) | 7–14 business days | Requires document review & check issuance |
| HSA (Estate Payout) | 10–20 business days | Depends on verification of court documents |
| Investment Liquidation | +3–5 business days | Adds time if funds are in mutual funds |
Note: Missing signatures or incorrect tax ID numbers on the W-9 are common causes for delay.
Tips & Pitfalls
Common Pitfalls and Tips
Do Not Use the Debit Card After Death
Using the decedent's HSA debit card after their date of death is considered an unqualified distribution and can lead to tax penalties and legal issues.
Qualified Medical Expenses
The estate or beneficiary can use HSA funds to pay for the decedent's qualified medical expenses incurred before death, provided they are paid within one year of the date of death. This can reduce the taxable amount for non-spouse beneficiaries.
Tax Implications Are Significant
- For Non-Spouses: The entire HSA balance is treated as ordinary income. UMB will issue a 1099-SA form.
- For Estates: The value is included in the decedent's final tax return.
Check for Employer Contributions
If the decedent was still employed, check if the employer made a final contribution or if one is pending. Wait for this to post before closing the account.
Investment Market Risk
If the HSA is invested, the value will fluctuate until UMB liquidates the assets. You cannot direct trading in the account after the owner's death until you have legal authority.