Discovering The Mature Lifestyle
Financial planner in Minnetonka sees his work as ‘a calling.’ Page 3
Finance
February 18, 2016
February Issue
Edina attorney helps clients avoid probate BY SUE WEBBER CONTRIBUTING WRITER As she gives advice to clients seeking help with financial and estate planning, Elizabeth Michaelis said she stresses the importance of avoiding probate. “That is basic, ” she s aid. “Why wouldn’t we want to avoid it? It’s expensive, and it’s primarily attorney’s fees. I’ve never had a c lient opt for probate.” Probate can be avoided by designating a beneficiary, or establishing a trust, Michaelis said. Michaelis is the founder of Guardian Counsel Law Office in Edina. The group assists indi viduals, families, and businesses with Estate Planning, Elder Law, Business, and Nonprofit law. She notes that many people have the mistaken impression that once they have a will, their estate planning is all set. “My mantra is ‘ Don’t trust your will,’” Michaelis said. With changes in t ax law, a lo t of estate planning needs to be adjusted, she said. Michaelis emphasizes the importance of long-term care planning, the sooner the better, she said. “It might be too late to think about [long-term care] insurance, but you can look at the possibility of being eligible for benefits in order to stay in your home, or in a long-term facility,”
she said. “There are still opportunities to plan.” Long-term care costs no w are at about $6,000 p er month, she s aid. “Even the most s ecure of us e ventually will face t hat if w e live long enough,” Michaelis said. “Once you’ve had a major event, such as a heart issue or a chronic illness, the insurance becomes too expensive or prohibitive to get.” Michaelis serves on the board of Senior Community Services, a no nprofit based in Minnetonka. “The social workers there are knowledgeable in housing and care issues; t hey pay attention to care givers,” she said. Despite the real estate crisis of a few years ago, Michaelis said she is not seeing clients who are panicked about housing. That population may
be better off than younger people regarding housing, she said. “A lot of senior citizens have their houses paid for,” she said. “It’s amazing the number of people who live in the same house forever and are immune to fluctuations in t he market. The single largest asset is your home.” Noting that many senior citizens maintain a co nservative portfolio, Michaelis said she enco urages her clients to spend their money. “If you have hung onto your house and have been reasonably conservative, I would encourage you to use your money,” she said. “We’re still talking about people who have lived through the Depression. They’re not inclined to spend it at the rate they could.” Michaelis teaches community education classes on finances at locations throughout the Twin Cities. For information about upcoming classes, call 952-830-9913. Before forming Guardian Counsel in 2004, M ichaelis led a co nsulting practice specializing in stra tegic planning for Fortune 500 companies in the health care and pharmaceutical sectors. Michaelis earned her J.D. from the University of St. Thomas School of Law, and an M.B.A. from the University of Minnesota. She is a member of the Probate & Trust, Elder Law and Business Law Sections of the MinnePROBATE - TO PAGE 2
Elizabeth Michaelis, an attorney in Edina, specializes in estate planning, elder law, business and non-profit law. (Submitted photo)