This answer is way off. Cash is generally not taxable unless subject to the estate tax if it is a large enough amount. HSA inherited for a non spouse is fully taxable as ordinary income.Cash outside of a tax advantaged account is fully taxable.
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Unless you are a spouse you need to pay taxes on the value of inherited HSA. Not necessarily true for cash.
I believe an HSA is nearly the worse thing to leave behind.
Also an HSA can be used to pay for the final expenses of the deceased after death, sheltering other assets from that expense. Since most health expenses tend to be right before death this is significant.
HSA is definitely not the worst to leave behind, if you are even lucky enough to leave anything in the first place.
Statistics: Posted by AJ07 — Mon Oct 06, 2025 5:47 pm — Replies 23 — Views 2187