Many individuals think about various accounts listed in their estate plan—financial bank accounts, insurance policies, and others. However, health savings accounts function differently than most other accounts but can be critical. They benefit both the creator of the estate plan and their beneficiaries—the individuals who will receive the assets and property after the creator of the estate plan has passed away. Below are common questions and solutions to estate planning problems involving health savings accounts. While Texans will have various uses for their health savings account, this information can assist individuals in their estate planning decisions.
What is a Health Savings Account?
A health savings account is an account that allows an individual to set aside money to pay for health expenses in the future. These funds are placed on a pre-tax basis, meaning they can be used to pay for deductibles, copayments, or other medical necessities.