Even though it does seem backwards, if the Health Savings Account (HSA) is inherited from a spouse, then it is considered to be your HSA with no tax implications if the money is used to pay your medical expenses.
If it is inherited from anyone other than your spouse, then the HSA funds are included as part of your income. Any medical expenses that you pay for the decedent within one year of their date of death from the account are not included in your income.
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