What happens to the FHSA in the event of the account holder's death ?

No contributions or transfers can be made to a deceased holder's FHSAs after their date of death. Also, transfers cannot be made from the deceased holder's FHSAs to another of the deceased holder's FHSAs, registered retirement saving plans (RRSPs) or registered retirement income funds (RRIFs) .

Distributions from the deceased holder's FHSAs can only be made to (or on behalf of) designated beneficiaries. If no beneficiaries have been designated, the amounts from the FHSA will be paid to the estate of the deceased holder.

Check for more information here at the CRA website : Death and FHSAs - Canada.ca (opens in a new tab)