Health Savings Accounts: Can I Put This in My Estate Plan?

May 10, 2013

Recently, during an estate planning session with one of my clients, I was asked the following question: if you have a health savings account, is that an asset that can go into a will or trust? The short answer is yes, with proper planning. For those of you who are unfamiliar, health savings accounts, or HSA’s are frequently offered as an option to employees who participate in high deductible health insurance plans, and they have become increasingly popular over the last five to eight years as insurance costs have soared. While this asset can be devised in a will or trust, like retirement plans, selection of appropriate beneficiaries can add continued tax benefit, while the wrong beneficiaries can accelerate income taxation. A great article that fully describes how HSA estate planning works and what elements you should consider in making this asset part of your  individual plan is located at www.americanbar.org/publications/probate_property_magazine_home/probate_2009_index/probate_nov_dec_2

 

Give us a call if you want to discuss HSA estate planning.  We’d be happy to help.