Q: What happens to my health savings account when I die? Do my heirs have to pay taxes on the money in it? -J.Y., Port Charlotte, Fla.
A: You should name a beneficiary for your HSA. You can name anyone you want, but selecting a spouse is preferable because a spouse can use the inherited HSA tax-free for eligible medical expenses. If you name someone other than a spouse, the HSA money is disbursed to the beneficiary and is taxable. If you don't designate a beneficiary, the money will be included in your estate and will be taxed on your final income tax return.