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What is a pooled special needs trust?

On Behalf of | Oct 4, 2021 | Trusts |

A pooled special needs trust, or PSNT, is a financial device that is designed to provide for the lifelong financial support of people with special needs, who often have ongoing medical costs as well as a limited ability to work for income. These trusts entail pooling together the financial resources of many people with special needs, investing those funds at low cost, and using the funds to pay for medical bills and other key needs.

Why a PSNT can help

People with special needs have a variety of lifelong costs that are not always predictable. These range from basic needs like Internet service and transportation to caregiver support and medical expenses that insurance won’t cover. The trust takes in funds like donations, insurance disbursements, inheritances, and other sources. The fund and its administrators also work with Social Security benefits and other benefit programs to ensure a complete spectrum of resources.

A pooled special needs trust will tend to have lower administrative costs due to the pooling effect. The administrators and other staff are also experienced with the particular needs of their clients, which is not likely to be the case with other traditional financial instruments.

For people who have loved ones with special needs, lifelong financial security is a significant concern. With a pooled special needs trust, they might feel more comfortable and confident that their financial needs will be provided for. It’s a customized solution to a complex and sometimes under-supported set of needs when you rely on government benefits alone.