"In Feb 2020 we asked the custodian of my wife HSA to close her unused HSA account and do a excess contribution refund. " So you did part 2 but not part 1.
Good, there is no need to close her HSA.
Most married couples tend to use on HSA belonging to one spouse or the other, but once one of you turns 55, then there is an advantage to having two, because if the owner of an HSA is 55, then he/she can contribute an extra $1,000 to his/her own HSA, without regard to the Family limit. For two people over 55, this turns the $7,000 annual HSA contribution limit for Family coverage to $9,000.
But if that is too far away for you and the HSA fees are eating you up, just spend the last of the money in her HSA, reduce the balance to zero, and let it die a natural death (i.e., close it) - you can always reopen one later if you still have HDHP coverage.
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