Does a spouse who inherits an HSA retain reimbusrement benefits for the deceased spouse’s unclaimed medical expenses?
HSA owner dies before being reimbursed for accumulated unclaimed medical expenses. The spouse inherits the HSA. Does the spouse who inherited the HSA retain the benefit of being reimbursed for the decease spouse’s (Original HSA owner) unclaimed medical expenses?
Thanks in advance for your help.
Permalink Submitted by David Mertz on Tue, 2017-01-24 17:15
Yes. If ths surviving spouse is the designated beneficiary, the surviving spouse automatically becomes the owner of the deceased spouse’s HSA, and the establishment date of the HSA remains the same. A spouse can use a tax-free distribution from their (now) own HSA to pay for qualified medical expenses of their deceased spouse incurred anytime after the establishment of the HSA.