Special Needs Trust Lawyer in Germantown, TN

You can protect your loved one’s future without losing benefits

A special needs trust can protect your family member’s financial stability without putting needed government benefits at risk.

What is a Special Needs Trusts?

A special needs trust is a specialized legal tool that holds and manages funds exclusively for a person with disabilities. Working with a special needs trust lawyer ensures that your trusted trustee (you, a family member, or a professional) distributes money for supplemental needs—never replacing government support for basics like food or a home.

The Basics Explained

At The Waldrop Firm, P.C., we are special needs trusts attorneys dedicated to helping families in Germantown and the surrounding areas through creating, funding, and managing special needs trusts, giving comfort knowing your loved one will be cared for properly, now and in the future.

Caring for a loved one with special needs means doing things a little differently, including estate planning.

The Perks of a Special Needs Trust

A properly drafted special needs trust holds assets separately, so they don’t count toward government benefit limits. This allows you to provide supplemental support that enhances life beyond basic government aid—without risking eligibility.

Preserves Vital Benefits: Keeps full access to SSI, Medicaid, housing assistance, and more intact.

Boosts Quality of Life: Funds “extras” like advanced medical treatments, therapy, education, adaptive equipment, transportation, vacations, entertainment, or even a companion—things that bring happiness and independence.

Protects Assets Long-Term: Shields funds from creditors, lawsuits, or poor financial decisions.

Flexible Family Planning: Integrates into your estate plan, allowing grandparents, parents, or others to contribute safely.

Why You Can’t Afford to Skip a Special Needs Trust

Even with the right intentions, leaving assets directly to a loved one with disabilities can trigger unintentional and terrible consequences. Government programs like SSI and Medicaid are “means-tested,” meaning recipients typically can’t have more than $2,000 in countable assets.

Without the guidance of a special needs estate planning attorney, you may face:

Immediately lose benefits

A direct inheritance or gift (even as little as a few thousand) can disqualify them from SSI (monthly income support) and Medicaid (necessary healthcare coverage), forcing you to “spend down” assets just to re-qualify.

Long-Term Penalties

Refusing or transferring an inheritance might be seen as a fraudulent transfer, leading to benefit suspensions for up to three years.

Family Disputes and Mismanagement

Without the right legal structure, funds could be potentially mishandled, exposed to creditors, or create conflicts among relatives.

Reduced Quality of Life

Losing access to local resources—such as specialized schools, healthcare providers, and support programs- can disrupt personal care and independence.

A special needs trust, structured by an attorney, can protect against these threats, ensuring your loved one thrives without unnecessary issues.

Your Two Special Needs Trust Options

First-Party (Self-Settled) Trust

Funded with the individual’s own assets (e.g., personal injury settlement, lawsuit award, or unexpected direct inheritance that belongs to the person with disabilities).
Ideal for protecting sudden or “windfall” assets that would otherwise disqualify the person from benefits.
Must be established before the beneficiary turns 65 (federal rule for most individual first-party trusts).
Requires Medicaid payback: Upon the beneficiary’s death, any remaining funds must first reimburse the state(s) for Medicaid costs paid during their lifetime (before anything goes to other heirs).
Often set up reactively (like after a settlement) by a parent, grandparent, guardian, court, or the competent individual themselves.

Third-Party Trust

Funded by family members or others (parents, grandparents, etc.)—never with the beneficiary’s own assets. This is the most common type of estate planning.
Provides ongoing supplemental support without jeopardizing benefits.
No Medicaid payback requirement: Upon the beneficiary’s death, remaining assets can fully pass to other chosen heirs or beneficiaries (e.g., siblings or charities).
No age limit on the beneficiary.
More flexible overall—can be part of a will or living trust, and allows the creator to name remainder beneficiaries freely.

This is often integrated into a broader estate plan; for example, a parent might work with an irrevocable trust lawyer to protect family wealth while providing for a child with disabilities.

Our recommendation as special needs trust attorneys: Choose a first-party trust if the money already belongs to the person with disabilities (but act before age 65). Choose a third-party trust for family-planned gifts or inheritances—it’s generally more powerful with no payback and greater control over leftovers.

Why us

Why Choose a Special Needs Trust Lawyer in Germantown from The Waldrop Firm

Selecting the right attorney matters as much as selecting the right trust structure. The wrong advice at the wrong moment can cost a beneficiary years of essential coverage.

David Waldrop brings over 37 years of legal experience to every special needs trust case, with bar admissions in Tennessee, Mississippi, and Arkansas. He earned his J.D. from the University of Memphis, Cecil C. Humphreys School of Law, and has served this community beyond the courtroom—as a former Germantown firefighter and former President of the Collierville Planning Commission. That background means he understands what families in Germantown are actually navigating, not just the legal framework around them.

Our firm handles first-party and third-party special needs trusts, guides families through trustee responsibilities and fiduciary duties, and ensures that every trust we draft accounts for Tennessee-specific rules and Shelby County procedures. We know the difference between a trust that technically complies and one that truly protects—and we build the latter.

The Waldrop Firm serves clients in Germantown and the broader Memphis area. When you work with us, we explain everything in detail, so you understand exactly what your trust does, why it is structured the way it is, and what happens next.

What our clients say

    
 
 
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   Richard Wilcher 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had an excellent experience working with David M. Waldrop and his assistant, Andrea Underhill. They  helped my mother in November 2025 with her will and power of attorney, and the entire process was handled with professionalism, care, and attention to detail. David took the time to clearly explain every step, making sure my family fully understood our options and that we felt confident in our decisions. Andrea was equally helpful—responsive, thoroughly organized, and always willing to answer questions clearly and promptly. What stood out most was their patience and compassion for my elderly parents. Estate planning can be a sensitive topic, but they made the experience smooth and stress-free. I truly appreciate their dedication and would HIGHLY RECCOMEND their services to anyone in need of estate planning assistance or for any legal matter.
  
 
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   Eric Stone 
 
 
 
 Trustindex verifies that the original source of the review is Google. Despite the situation, Mr. Waldrop and Ms. Andrea were terrific. Particularly in having to deal with a very aggravating opposing counsel. Because of them, I feel that I got through my divorce on very favorable terms and I remain grateful for that.
  
 
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   Benjamin T Hester 
 
 
 
 Trustindex verifies that the original source of the review is Google. David’s diligence, persistence and professionalism were greatly appreciated during my case. Additionally his support staff, in particular Andrea, helped ease a lot of my frustration with her attention to detail and responsiveness. I thank them both for all their hard work!
  
 
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   J Green 
 
 
 
 Trustindex verifies that the original source of the review is Google. We were meeting with our attorney today and the a/c had gone out of the building. It is literally about 100 degree weather right now! David Waldrop was nice enough to let us meet with our attorney in his nice, cool, building. Thank you so much! ⭐️⭐️⭐️⭐️⭐️
  
 
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   LS F 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great advice and guidance on a tough situation I’m dealing with! Thank you !
  
 
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   Jessica Cannon-Macklin 
 
 
 
 Trustindex verifies that the original source of the review is Google. Mr. Waldrop & his staff were very friendly, prompt, & explained everything in detail to our family throughout our estate planning process. I would recommend his firm to anyone!
  
 
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   Delores Grandberry 
 
 
 
 Trustindex verifies that the original source of the review is Google. I am looking forward to working with Waldrop Firm, P.C. This Firm work with difficult cases. an my case is difficult. I have only seen 5 stars behind their belt. Thank you David Waldrop  for accepting  my case.

Our Process, Your Results

Every situation is different, and every plan should reflect that. Here’s what to expect by working with us:

Initial Consultation

We listen to your family's story, assess assets, and identify your loved one's specific needs to begin our planning. Our goal is always to keep your wishes and your loved one’s well-being as the goal.

Custom Drafting

Create a legally compliant trust perfectly suited to the long-term goals.

Secure Funding

Properly transfer assets without triggering benefit issues.

Trustee Selection & Ongoing Reviews

Choose the best manager and adjust as life changes.

Answering Frequently Asked Questions

What are the typical costs for establishing a special needs trust?

Costs vary based on the complexity of your family’s situation—the type of trust needed, the assets involved, and whether coordination with other estate planning documents is required. Because special needs trust law involves layered federal and state rules, having an experienced attorney draft the trust correctly from the start avoids far more expensive problems later. Contact us for a free consultation and we’ll give you a clear picture of what your situation involves.

How long does the process of creating a special needs trust usually take?

The timeline depends on the complexity of the trust and how quickly we can gather the necessary information about your loved one’s needs, assets, and benefit status. With over 37 years of experience handling these matters, we work efficiently so your loved one’s protection is not delayed longer than necessary.

Who can serve as trustee?

A reliable family member, friend, or professional—someone organized and familiar with special needs finances.

Can a special needs trust be changed or modified if circumstances change?

It depends on the type of trust. Third-party trusts often allow updates; first-party trusts carry more restrictions on modification. The right approach depends on which type you have and what change you need to make. We advise clients on whether a modification is possible and what steps are required under Tennessee law.

What assets can fund it?

Cash, investments, insurance proceeds, settlements, or inheritances (varies by trust type).

What happens if my loved one with special needs receives an inheritance or settlement directly?

This is one of the most urgent situations in special needs planning. A direct inheritance or gift—even a modest amount—can push countable assets above the program limits for SSI and Medicaid, triggering disqualification. Depending on how the funds are handled afterward, there may also be transfer penalties. Acting quickly with a Germantown special needs trust attorney can help limit the damage and get the right structure in place.

What documents do I need before my initial consultation?

It helps to bring basic financial information (account statements, insurance policies, any settlement or inheritance documents), information about your loved one’s current benefit programs, and any existing estate planning documents you have. We work through the details with you at the consultation—you don’t need everything to get started.

Consult a Special Needs Trust Lawyer for Peace of Mind

Special needs planning is a delicate yet powerful field that, if done right, can support your loved one and go above and beyond for benefits. Don’t wait any longer, contact a special needs trust attorney at The Waldrop Firm, P.C. today to get started