How to Set Up a WisPACT Trust

We have already discussed a bit of background on WisPACT trusts.

WisPACT trusts are useful tools for disabled beneficiaries, allowing them to set aside assets that normally would push them over an asset limit and make them ineligible for various government programs.

Today, I want to explain a bit more about the who, what, and where of setting up a WisPACT trust.

WHO:
Either a disabled person or a loved one can set up a WisPACT trust.

As discussed in part one of this post, if a disabled person puts their own money into a WisPACT trust, that is called a first party or WisPACT Trust I style trust.  If another person wants to set aside funds for the disabled beneficiary, they would use a third party or WisPACT Trust II style trust.

Sometimes, we will run into a circumstance where the disabled person needs to put their own funds into a WisPACT trust but is unable to sign documents for themselves.  In those circumstances, we can have the disabled person’s Power of Attorney or Guardian create the trust on their behalf.

WHAT:
The easiest asset to transfer to a WisPACT trust is cash.  WisPACT routinely holds onto cash assets for their members, keeping separate track of the amount of funds that each beneficiary has in their respective accounts.

WisPACT can also hold onto other types of assets for beneficiaries.  In certain circumstances, WisPACT can hold onto vehicles, real estate, retirement accounts, and all sorts of other unique assets.  However, the process to transfer these assets into the trust is more involved and requires additional pre-planning to accomplish.

WHERE:
WisPACT’s main office is located in Madison, Wisconsin.  WisPACT uses Chemical Bank from Michigan as the trustee for their trusts.

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Jon L. Fischer

Estate Planning and Elder Law Attorney at McCarty Law LLP

Jon focuses his practice on estate planning, probate matters, and Medicaid planning as he aims to help clients in their time of need.

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