Can an HSA be put in a will? Understanding the Importance of HSA for Estate Planning

Health Savings Accounts (HSAs) have become increasingly popular for managing healthcare costs, but many people wonder if they can include their HSA in their will. In short, an HSA cannot be put directly into a will because it is a personal account that is non-transferable upon death. However, there are essential steps you can take to ensure your HSA funds are managed according to your wishes and benefit your heirs.

One important aspect to consider is designating a beneficiary for your HSA. By naming a beneficiary, you can dictate who will receive the funds in your HSA upon your passing. This ensures that your HSA funds do not get tied up in probate and can be easily accessed by your chosen beneficiary.

It is crucial to keep your beneficiary designation updated, especially after major life events such as marriage, divorce, or the birth of a child. Failing to update your beneficiary information can lead to complications and disputes over your HSA funds.

Another strategy for estate planning with an HSA is to establish a trust that includes provisions for managing your HSA funds. A trust can help ensure that your HSA funds are used for their intended purpose and distributed according to your instructions.

Key Points to Remember:

• HSAs are non-transferable upon death and cannot be put directly into a will.
• Designate a beneficiary for your HSA to ensure proper distribution of funds.
• Keep your beneficiary information updated to avoid complications.
• Consider establishing a trust to manage your HSA funds as part of your estate planning.

While Health Savings Accounts (HSAs) cannot be included in a will because they are non-transferable upon your death, it's vital to take proactive steps to manage your HSA funds and ensure they benefit your loved ones after you're gone. A beneficiary designation is the best way to ensure that your HSA funds go directly to your chosen individual without going through probate.