03/21/2024

New Legislation Proposed to Ease Funeral Expenses

Reprinted with the Permission of the National Funeral Directors Association

Families facing the unexpected loss of a loved one may find relief in new legislation introduced in the House of Representatives today. Endorsed by the National Funeral Directors Association, the “Funeral Coverage Act of 2024” (H.R. 7963) introduced by Rep. Kevin Hern (R-OK), would designate funeral expenses as a qualified expense eligible for coverage under Health Savings Accounts (HSAs). This means that families that have saved money for healthcare expenses can use those funds for funeral and burial expenses after the person dies and no longer needs the money for healthcare costs.

If the law allowed funeral expenses to be deemed a qualified expense for which HSA funds could be used, the beneficiary of an HSA could use the proceeds from a decedent's HSA to pay for the funeral on a tax-free basis...KEEP READING