That depends on who you have named as your beneficiary on the HSA. With the Health Savings Account (HSA), you deposit pre-tax dollars into an account for your health care needs. Any earnings on the balance accumulates tax-fee. If your beneficiary is your spouse, he/she can use the dollars just as you would. If your spouse uses the dollars for anything other than health care, ordinary income tax will be owed. If your beneficiary is non-spousal, the HSA dies with you. Your heir will have to withdraw the funds and pay tax on the distribution.

disclosures:http://www.hechteffect.net/?page_id=31