Protecting Assets for Individuals with Disabilities
A Wispact Trust is a special needs trust designed to protect the assets of individuals with disabilities while ensuring continued eligibility for public benefits such as Medicaid and Supplemental Security Income (SSI). These trusts allow individuals to maintain financial security without jeopardizing crucial government assistance.
What is a Wispact Trust?
Wispact, Inc. is a Wisconsin-based nonprofit organization that administers pooled and individual special needs trusts. These trusts help individuals with disabilities preserve their assets while maintaining eligibility for public benefits.
There are two main types of Wispact Trusts:
1. First-Party Trust (Self-Funded)-Trust I
- Funded with the beneficiary’s own assets (e.g., inheritance, lawsuit settlement, or savings).
- Allows the individual to qualify for Medicaid and SSI while using the trust for supplemental needs.
- Medicaid payback provision applies upon the beneficiary’s passing.
2. Third-Party Trust-Trust II
- Funded by parents, grandparents, or other loved ones for the benefit of an individual with disabilities.
- No Medicaid payback requirement.
- Allows funds to be used for enhanced quality of life expenses, such as medical care, housing, and recreational activities.
Benefits of a Wispact Trust
- Preserves Medicaid & SSI Eligibility – Assets in the trust are not counted against resource limits.
- Provides Financial Security – Funds can be used for housing, therapy, travel, and personal care.
- Professionally Managed – Wispact oversees trust administration to ensure compliance with regulations.
- No Need for Individual Trustee – Wispact handles financial management, reducing family burdens.
How We Can Help
At Eckert & Krautkramer, LLC, we provide comprehensive legal assistance for:
- Establishing First-Party & Third-Party Wispact Trusts
- Determining Eligibility & Compliance with Medicaid & SSI Rules
- Coordinating Estate Planning for Families with Special Needs Beneficiaries
- Advising on Proper Trust Funding & Asset Transfers
