Most settlement consultants know that pooled special needs trusts (PSNTs) help preserve eligibility for needs-based benefits like Medicaid and SSI. But there’s more beneath the surface, and understanding these details can make a real difference for your clients.

Here are five pooled trust insights even seasoned consultants may not know:

#1: Pooled Special Needs Trusts Can Work with Medicare Set-Asides

Some individuals believe that PSNTs and Medicare Set-Asides (MSAs) can’t coexist—but with careful planning, they can. At Legacy Enhancement, we coordinate disbursements to protect both Medicaid and Medicare interests, ensuring compliance without limiting flexibility.

#2: Age Limitations Only Apply to First-Party Trusts

While federal law limits first-party (d(4)(A)) special needs trusts to individuals under 65, pooled trusts (d(4)(C)) have no such restriction. Injured clients over 65 can still join a PSNT and preserve Medicaid eligibility with proper planning to address state-specific transfer penalty rules.

#3: Smaller Settlements Still Deserve Protection

A common misconception is that pooled trusts are only for larger settlements. In truth, PSNTs are often the best fit for modest awards, as low as $10,000 or less, due to their affordability and built-in administration.

#4: Funds Can Be Used for More Than Medical Needs

PSNTs don’t just cover medical expenses. Funds can cover the cost of assistive technology, transportation, education, travel, service animals, and even recreational activities that enhance quality of life. Many families don’t realize the flexibility they have.

#5: Nonprofit Trusts Like Ours Are Mission-Driven

Legacy Enhancement Trust is a 501(c)(3) nonprofit, meaning we answer to people, not shareholders. Our goal is to provide responsive, ethical trust administration—not profit maximization.

Stay Ahead of the Curve

By understanding how PSNTs work, you’ll bring unmatched value to your clients. To learn more, contact Legacy Enhancement Trust today.