Get reimbursements on any health savings accounts

Generally, healthcare savings accounts are setup either individually or through the decedent’s place of work as a benefit of employment. If you suspect that the decedent had a health savings account (for example, you find a health savings account card in his or her wallet), but it is not highlighted on tax forms, you might need to check with the decedent’s employer or former employer to see if it was offered there.

Healthcare savings accounts are typically considered non-probate assets. This means they pass to the person listed as beneficiary on the account, and do not pass to the estate for distribution to beneficiaries listed in the will. If there is no one listed as a recipient of the funds at death or if the recipient is also dead, the unspent money in the account might then pass to the estate. If you have questions about this, ask the estate’s attorney for more information.

There also can be tax implications to the distribution of money left in a health savings account. For example, the transfer of money might pass tax free if going to a surviving spouse, but it may trigger taxes if it goes to someone else. Be sure to consult the estate’s accountant for further information about the tax implications of these types of accounts.