Special Needs Trust Lawyer in Germantown, TN
You can protect your loved one’s future without sacrificing benefits
Caring for a loved one with special needs means doing things a little differently, including estate planning. A special needs trust can protect your family member’s financial stability without putting needed government benefits at risk.
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.
What is a Special Needs Trusts?
The Basics Explained
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.
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.
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.
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.
What our clients say
Our Process, Your Results
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.
Create a legally compliant trust perfectly suited to the long-term goals.
Properly transfer assets without triggering benefit issues.
Trustee Selection & Ongoing Reviews
Choose the best manager and adjust as life changes.
Answering Frequently Asked Questions
Who can serve as trustee?
Can the trust be modified?
What assets can fund it?
Cash, investments, insurance proceeds, settlements, or inheritances (varies by trust type).
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