Estate Planning with Katrina Hofstetter from Cornerstone Legal

This month Katrina Hofstetter of Cornerstone Legal shares about Estates & Home Purchasing and some special considerations.

Estates & Home Purchasing: What Families Should Know Before (and After) Buying

Spring has a way of getting us thinking about fresh starts, and for many families, that includes the possibility of a new home.

Between open houses, inspections, and closing dates, there’s a lot to keep track of. But what is one piece often overlooked? 

How does your home purchase fits into your estate plan? We sat down with Katrina Hofstetter of Cornerstone Legal to talk through a few important, and often unexpected, considerations for families navigating home buying.

Buying a Home from an Estate? Here’s What to Watch For

If you’re purchasing a home from a family where the previous owner has died, the process can look a little different.

Whether the home is being sold through a Trust or a Probate estate, the person handling the sale (a Trustee or Personal Representative) may not actually know much about the property.

That means:

• Seller disclosures may be limited
• Many boxes may be checked as “unknown”
• Details like roof age, appliance condition, or past issues may not be available

In short: you may not get the full picture of the home’s history.

This doesn’t mean you shouldn’t move forward, but it does mean you’ll want to be extra thorough with inspections and due diligence.

For Sale By Owner (FSBO)? It Can Still Be Done Right

Buying a home without a realtor can feel intimidating, but it doesn’t have to be.

Even in a For Sale By Owner (FSBO) situation, you can still have a structured, professional process by working with:

• A real estate attorney
• A title company

These professionals can:

• Prepare and review documents
• Handle title work
• Manage the closing process

Bottom line: You can still have a smooth, formal transaction, even without a broker involved.

After Closing: Yes, You Own Your Home

One of the most common misconceptions Katrina hears? “I don’t really own my home yet — I have a mortgage.”

Not true.

After closing, you receive a deed, which means:

✔ You own the property
✔ You have control over it
✔ You can make decisions about how it’s protected and transferred

Even with a mortgage, that ownership matters, especially when it comes to estate planning.

Protecting Your Home: Two Common Options

Once you own your home, there are ways to protect that investment for your family.

Trust Planning

A Trust can:

• Provide long-term protection
• Help avoid Probate
• Ensure children or beneficiaries are cared for according to your wishes

This is especially important for families with:

• Minor children
• Complex assets
• Long-term planning goals
• Ladybird Deed (Enhanced Life Estate Deed)

A Ladybird Deed is a simpler option that many families don’t know about.

It allows you to:

• Keep ownership of your home during your lifetime
• Name a beneficiary directly on the deed
• Automatically transfer the property upon death

Think of it like: A beneficiary designation (but for your home).

And importantly, you can still:

• Have a mortgage
• Take out a Home Equity Line of Credit (HELOC)
• Sell the home
• Maintain full control

If you still own the property at the time of your death, it passes directly to the named person, without going through Probate.

The Bottom Line

Buying a home is one of the biggest investments your family will make.

But it’s not just about the purchase, it’s about what happens next.

Taking a little time to understand:

• how ownership works
• how your home fits into your estate plan
• and how to protect it

…can make a meaningful difference for your family down the road.

Want to Learn More?

Katrina Hofstetter of Cornerstone Legal shares more practical, real-life guidance like this through her website, social media, and her Built in the 517 podcast, where she highlights local businesses and community stories.Want to Learn More?

Katrina Hofstetter of Cornerstone Legal shares more practical, real-life guidance like this through her website, social media, and her Built in the 517 podcast, where she highlights local businesses and community stories.

You can also reach out to Katrina Hofstetter at Cornerstone Legal by visiting www.cornerstonelegalplc.com or emailing [email protected].

She’s here to help you protect what matters most—with clarity, compassion, and a mom’s perspective.

Be sure to mention that GLAMoms sent you. 😊

This month Katrina Hofstetter of Cornerstone Legal shares about organizing your essential documents and other important papers beyond a Will. 

Katrina Hofstetter has a calm, grounded presence—and mom humor to match. She understands that conversations about estate planning can feel overwhelming, but they’re essential if you want to ease the burden on your family. It’s not just about paperwork—it’s about making sure your wishes are known, especially in blended families or when you’re juggling a lot of responsibilities.

When it comes to estate planning, the best first step isn’t a complicated legal document—it’s a simple binder.

Katrina, a local mom and estate planning attorney with Cornerstone Legal, recently sat down with Greater Lansing Area Moms to share why starting with something as straightforward as a binder can make a meaningful difference. In it, you can gather all the non-legal—but incredibly important—details your loved ones may need if something unexpected happens.

What to Organize—That Isn’t in Your Will

📁 Health Info & Medical Wishes
Include your health history, prescriptions, blood type, allergies, preferred specialists, and any directions about medical treatment or end-of-life care. It’s not a legal document—but it’s often what people need most in an emergency.

💻 Usernames & Passwords
Create a secure list of your accounts and logins. Include banking, bill pay, insurance, subscriptions—anything someone may need to access quickly.

📅 Monthly Bills & Budget
List what’s due, how you pay it, and what your budget looks like. This can be more important than you think if someone needs to temporarily manage your finances.

👨‍👩‍👧‍👦 Parenting Wishes & Blended Families
Write down how you’d like your children raised if a legal guardian needs to step in. In blended families, don’t assume—communicate. Katrina recommends having two sets of original documents when necessary and making sure everyone is clear on your wishes.

🧾 Important Papers
Keep birth certificates, Social Security cards, deeds, life insurance, etc., in one organized binder—plus a digital backup.

It’s Never Too Early to Start

Whether your kids are toddlers or teens, now is the right time to start planning. Organizing these personal details may not feel urgent—but it’s one of the most thoughtful, caring things you can do for your family. If something unexpected happens, the people who love you will be able to step in with clarity and confidence. Whether you’re starting from scratch or updating what you already have, these simple steps help ensure your wishes are known and your family is supported. As Katrina gently reminds us: it’s not about fear—it’s about care. And it’s never too early to start.

Want help getting started or have questions about your family’s plan?
You can reach out to Katrina Hofstetter at Cornerstone Legal by visiting www.cornerstonelegalplc.com or emailing [email protected].

She’s here to help you protect what matters most—with clarity, compassion, and a mom’s perspective.

Be sure to mention that GLAMoms sent you. 😊

Do you have a teen heading off to college soon?  If they are 18 years old, we have some valuable information to share.

GLAMoms had the honor of speaking to Katrina Hofstetter of Cornerstone Legal about new adults going away to college and the planning considerations for new college freshmen, and it’s more than new sheets and notebooks. Katrina discusses how your 18-year-old is a legal adult and how you, as parents, no longer have legal authority over them. 

She also discusses what types of documents are important to have in place for these young adults such as a financial power of attorney (POA) and healthcare POA.

And what exactly is probate? Katrina gives a detailed description of why you and your college student want to steer clear of probate and ways to avoid it.

Is your adult child already off to school without power of attorney plans in place?  Katrina will help guide you through the process and get your family what needs to be prepared just in case. 

Or maybe you do not have an adult child, please forward this to a friend or family member who does.  

Be sure to mention that GLAMoms sent you. Thank you, Katrina!

Additional information on the importance of power of attorney, how to avoid probate and more can be found HERE.  Katrina can be reached in a variety of ways, including her popular YouTube channel, 517 Follow Friday! Below you will find her contact information linked.  

 Am I really old enough to need an Estate Plan?

 Age truly isn’t an indicator in the Estate Planning field.  There are many young individuals and couples who benefit from Estate Planning.  The most common triggering event for younger clients is the birth of their first child.  Young parents can utilize Estate Planning to provide for Guardians of their children if they become incapacitated or pass away.  The custody and care of your children is not something that any parent wants to leave up to a stranger (the Probate Court Judge), or open to conflict among family members. 

Setting up a Living Trust is also a crucial step when you have minor children to avoid Probate Court Conservatorships for each child.  If both parents pass away, the minor children cannot directly inherit their parent’s assets.  Each child requires a Probate Court Guardian and Conservator until they turn 18.  If you set up a Living Trust and fund your assets into the trust, your Successor Trustee can manage and protect your children’s inheritance until they turn 18 – no Probate Court involvement at all.

 Do I have enough assets to set up an Estate Plan?

 Too often Estate Planning is perceived as synonymous with wealth.  This just isn’t the case.  The types of assets you have, and sometimes the value of certain assets, may guide me in making a recommendation about the best form of planning to address your concerns and accomplish your goals.  But every person, regardless of the value of their assets, will benefit from some level of Estate Planning.  It’s important to understand that an Estate Plan is not just a Will or Living Trust.  An Estate Plan also consists of Powers of Attorney, which are crucial to avoid Probate Court adult Guardianships and Conservatorships when you become incapacitated. 

So even if you feel that the value of your Estate is small, you still have other planning needs to address.  On the opposite end of the spectrum, there are numerous planning options to protect and preserve the wealth you’ve accumulated and avoid taxes and complicated administrations.

 What is a Will?

 A Will is a set of instructions, to the Probate Court, that appoints an individual to take control of your estate (your Personal Representative) and directs the distribution of your Estate.  A Will can also be used to designate Guardians for your minor children.  When you have a Will, your Estate must be administered through your local Probate Court and your Personal Representative must follow all Michigan Court Rules related to this process.  The Probate Administration process is public and can be lengthy.  However, a Will can still be a valuable estate planning tool for many clients.

 What is a Living Trust?

 A Living Trust is also a set of instructions that appoints an individual to take control of your Estate (your Successor Trustee) and directs the distribution of your Estate.  However, a Living Trust is a planning tool that keeps the nature and extent of your Estate private.  A Living Trust avoids the publicity, length, and cost of Probate Administration by holding title or a beneficial interest in your Estate assets and containing all the necessary instructions and rules for administration.

 There are a variety of available planning options with a Living Trust, including: 

• Incapacity planning for yourself to protect and maintain your estate 
• Providing for a professional Successor Trustee 
• Planning for the care and maintenance of your pets 
• Providing for charitable giving 
• Specific distributions of property 
• Long-term discretionary trusts for your children and/or grandchildren 
• Special needs planning for children and/or grandchildren 
• Distributing personal property 
• Succession planning for your business 

Talk to me about Powers of Attorney, Conservatorships and Guardianships…

A Durable Financial Power of Attorney is a document that allows you to appoint an individual to handle your personal financial matters if you become incapacitated.  If you don’t have this document in place and you become incapacitated, the Probate Court will appoint an individual to handle your personal financial matters – a Conservator.  A Healthcare Power of Attorney is a document that allows you to appoint an individual to make your medical decisions and provide for your medical care if you become incapacitated.  If you don’t have this document in place and you become incapacitated, the Probate Court will appoint an individual to handle your medical decisions and provide for your medical care – a Guardian. 

Both of these court appointments require annual reporting and court oversight.  In most cases, your loved ones will have to pay filing fees as well as fees to a Guardian Ad Litem – your legal representative.  

Is Probate Administration really a big deal?

In Michigan, any amount of money can trigger probate.  There is a small probate process if the value of the assets is below $24,000.  But this is still a public and costly process – unnecessary red tape.  

My #1 goal with clients is to avoid probate administration.  Most estates will cost significantly more to administer through the Probate Court than you would spend to set up an Estate Plan ahead of time.  Typical legal fees in mid-Michigan will run you about $2,500-$3,000, in addition to the Probate Court filing and inventory fees.  You also lose a huge element of privacy.  Almost every document that is required to be filed with the Probate Court will become public record.  You are also required to file a Notice to Creditors in the newspaper.  

The biggest issue families face with probate administration occurs when a loved one passes away without a Will.  When this happens, the court looks to Michigan law to decide who gets what and in what proportions.  This almost never plays out the way that people want and quite often results in conflict and litigation.

So why can’t I just name beneficiaries and joint owners on my assets and call it good?

Bottom line – you certainly can.  That’s the beauty of Estate Planning.  You can choose the level of planning to put in place!  If you rely on beneficiary designations to transfer your assets when you die, you need to know and understand how those assets will pay out.  

Are you naming minor beneficiaries?  If so, you need to know going in that those minors will require Probate Court Conservatorships to gain access to your asset.  Are you naming contingent beneficiaries? 

If not, your assets may still revert to your probate Estate if your named beneficiaries pass away before you.  If you rely on naming joint owners on your assets, you expose yourself in ways that most people don’t realize.  That joint owner with a divorce on the horizon?  Your asset just became their asset for division in their divorce judgment.  The joint owner with a gambling addition or creditor issues?  Your asset just became fair game for collections.  That one joint owner child who decides they won’t share with their siblings when you pass away?  They have no legal obligation to honor your wishes…  

Thank you Katrina for sharing Estate Planning information!  Contact Katrina at Cornerstone Legal and discuss your plans in the event of your death.  It is a scary thought – but not having your plans in place and your wishes known is even more troublesome!  

And just for Greater Lansing Area Moms – Mention GLAMoms for either a free review of your existing Estate Plan or 5% off a new Estate Plan.

Content was provided by Katrina Hofstetter, Cornerstone Legal