What happens if I die with a balance remaining in the HCSP?
In the event of your death, your spouse and/or legal tax dependents are automatically entitled to the remaining account balance for tax-free reimbursement of eligible healthcare expenses. Any remaining balance is put into an account in your spouse's name so they can use the money for reimbursement of out-of-pocket health care expenses

Please note: Current federal law does not define a domestic partner to be a qualified legal tax dependent; however, they may be named as a designated beneficiary.

What if I don't have a spouse and/or legal tax dependents?
If you do not have a spouse or legal tax dependents at the time of your death, your designated beneficiary may use the account balance for reimbursement of eligible health care expenses. Reimbursements to a beneficiary are taxed as ordinary income.

Please do not list your spouse or legal tax dependents as the beneficiary, as they are automatically entitled to the account balance upon your death.

Do I need to designate a beneficiary if I have a spouse or legal tax dependents?
Even if you have a spouse or legal tax dependents, we encourage you to designate a beneficiary because your situation may change - your spouse may precede you in death; children grow up and are no longer considered legal tax dependents (adult children who are no longer legal tax dependents can be named as the beneficiary ).

Remember!
Your surviving spouse or legal tax dependents always supersede a designated beneficiary, which is why you should not list them as your beneficiaries. The beneficiary is only eligible to receive any remaining account balance if there is no spouse or legal tax dependent.