A New Way To Think About Estate Planning
A Boston-area wealth planning expert is championing a different concept in estate planning that focuses on improving generational wealth based on need and circumstances as opposed to an even distribution of wealth to the surviving heirs.
Stephen Martiros, founder of Kindros, a non-profit website dedicated to financial literacy for all ages, developed this innovative concept with his own family in mind. The results have been “life changing” for several of his family members.
A “GRAND” NEW IDEA
Martiros’s approach involves distributing his mother’s estate while she is still alive, focusing on her grandchildren rather than her children. This strategy emerged as her grandchildren faced over a quarter million dollars in student loans, with interest rates soaring as high as 13%. Remarkably, this total debt has been reduced to just $66,000 over seven years, with many family members completely free from student loans.
“I have worked with trust and estate lawyers for many years,” Martiros explains. “Typically, estate planning principles aim to transfer wealth in a way that reflects the wealth owner’s wishes for the next generation. However, it often results in equal distribution, which doesn’t necessarily address individual needs.”
DON’T WAIT
At 64, Martiros proposed this plan to his mother, who embraced the idea wholeheartedly. She wanted to direct her estate—largely inherited from his father—toward those who needed it most: her eight grandchildren. Rather than waiting until after her death, she aimed to alleviate the financial burdens of her grandchildren, particularly their student loans.
Martiros created a detailed spreadsheet outlining the student loan debts of his siblings’ children, excluding his own twins, who graduated debt-free. This included eight nieces and nephews, one of their spouses, and his sister, who still had outstanding debt from an advanced degree.
Crunching the Numbers for Family
Many family members had multiple loans, totaling 28 different debts that needed addressing. The family recognized that to improve their overall lifestyle, they had to include the spouse’s debt, which was among the largest burdens.
Martiros’s passion for helping others stems from his late father, who grew up in a small Albanian village devoid of electricity or commerce. This upbringing instilled a strong sense of community and support for family members. Thus, the plan was twofold: to assist those in need and to provide immediate help rather than waiting until after his mother’s passing.
Despite the unconventional approach of skipping a generation, the entire family supported the initiative. “One of my principles is to think holistically,” Martiros states. “It’s essential to understand each person’s unique circumstances and challenges.” Traditional estate planning often fails to provide timely assistance to those who need it most, he notes.
Martiros emphasizes the importance of fully paying off loans. “If someone has a $20,000 student loan with a $300 monthly payment, paying off half doesn’t reduce that payment,” he explains. “We aimed to eliminate loans entirely to relieve the monthly burden.”
“We assessed who faced the most acute situations based on total payments and monthly obligations. This balancing act was crucial,” he adds. “It was a game changer for many. Some became debt-free, while others received significant relief.”
THE OUTCOME
For one niece, eliminating her student debt allowed her to pursue an advanced degree. Another found her debt reduced enough to manage payments effectively, while one individual saw her debt drop from $60,000 to $20,000.
Martiros’s mother passed away at 85, feeling fulfilled in her mission to help her family. “She didn’t have the resources to pay everyone’s debts entirely, but she felt she made a substantial impact,” he shares.
The family plans to continue this supportive mindset. “We’ll likely keep helping those who need it most. Creating better conditions for family members fosters financial health and reduces stress, instilling hope and direction,” he concludes.
Stay on top of your finances with Senior Planet from AARP. Join us for live lectures on finance, money management, budgeting tips, articles, and more. Check out all our offerings here. Questions? Call our Senior Planet Tech Hotline: 888-713-3495.
Rodney A. Brooks is an award-winning journalist and author. The former Deputy Managing Editor/Money at USA TODAY, his retirement columns appear in U.S. News & World Report and Senior Planet.com. He has also written for National Geographic, The Washington Post, and USA TODAY and has testified before the U.S. Senate Special Committee on Aging. His book, “The Rise & Fall of the Freedman’s Bank, And Its Lasting Socio-economic Impact on Black America,” was released in 2024. He is also the author of “Fixing the Racial Wealth Gap.” His website is www.rodneyabrooks.com
Your use of any financial advice is at your sole discretion and risk. Seniorplanet.org and Older Adults Technology Services from AARP make no claim or promise of any result or success.
A Boston-area wealth planning expert is championing a different concept in estate planning that focuses on improving generational wealth based on need and circumstances as opposed to an even distribution of wealth to the surviving heirs.
Stephen Martiros, founder of Kindros, a non-profit website dedicated to financial literacy for all ages, developed this innovative concept with his own family in mind. The results have been “life changing” for several of his family members.
A “GRAND” NEW IDEA
Martiros’s approach involves distributing his mother’s estate while she is still alive, focusing on her grandchildren rather than her children. This strategy emerged as her grandchildren faced over a quarter million dollars in student loans, with interest rates soaring as high as 13%. Remarkably, this total debt has been reduced to just $66,000 over seven years, with many family members completely free from student loans.
“I have worked with trust and estate lawyers for many years,” Martiros explains. “Typically, estate planning principles aim to transfer wealth in a way that reflects the wealth owner’s wishes for the next generation. However, it often results in equal distribution, which doesn’t necessarily address individual needs.”
DON’T WAIT
At 64, Martiros proposed this plan to his mother, who embraced the idea wholeheartedly. She wanted to direct her estate—largely inherited from his father—toward those who needed it most: her eight grandchildren. Rather than waiting until after her death, she aimed to alleviate the financial burdens of her grandchildren, particularly their student loans.
Martiros created a detailed spreadsheet outlining the student loan debts of his siblings’ children, excluding his own twins, who graduated debt-free. This included eight nieces and nephews, one of their spouses, and his sister, who still had outstanding debt from an advanced degree.
Crunching the Numbers for Family
Many family members had multiple loans, totaling 28 different debts that needed addressing. The family recognized that to improve their overall lifestyle, they had to include the spouse’s debt, which was among the largest burdens.
Martiros’s passion for helping others stems from his late father, who grew up in a small Albanian village devoid of electricity or commerce. This upbringing instilled a strong sense of community and support for family members. Thus, the plan was twofold: to assist those in need and to provide immediate help rather than waiting until after his mother’s passing.
Despite the unconventional approach of skipping a generation, the entire family supported the initiative. “One of my principles is to think holistically,” Martiros states. “It’s essential to understand each person’s unique circumstances and challenges.” Traditional estate planning often fails to provide timely assistance to those who need it most, he notes.
Martiros emphasizes the importance of fully paying off loans. “If someone has a $20,000 student loan with a $300 monthly payment, paying off half doesn’t reduce that payment,” he explains. “We aimed to eliminate loans entirely to relieve the monthly burden.”
“We assessed who faced the most acute situations based on total payments and monthly obligations. This balancing act was crucial,” he adds. “It was a game changer for many. Some became debt-free, while others received significant relief.”
THE OUTCOME
For one niece, eliminating her student debt allowed her to pursue an advanced degree. Another found her debt reduced enough to manage payments effectively, while one individual saw her debt drop from $60,000 to $20,000.
Martiros’s mother passed away at 85, feeling fulfilled in her mission to help her family. “She didn’t have the resources to pay everyone’s debts entirely, but she felt she made a substantial impact,” he shares.
The family plans to continue this supportive mindset. “We’ll likely keep helping those who need it most. Creating better conditions for family members fosters financial health and reduces stress, instilling hope and direction,” he concludes.
Stay on top of your finances with Senior Planet from AARP. Join us for live lectures on finance, money management, budgeting tips, articles, and more. Check out all our offerings here. Questions? Call our Senior Planet Tech Hotline: 888-713-3495.
Rodney A. Brooks is an award-winning journalist and author. The former Deputy Managing Editor/Money at USA TODAY, his retirement columns appear in U.S. News & World Report and Senior Planet.com. He has also written for National Geographic, The Washington Post, and USA TODAY and has testified before the U.S. Senate Special Committee on Aging. His book, “The Rise & Fall of the Freedman’s Bank, And Its Lasting Socio-economic Impact on Black America,” was released in 2024. He is also the author of “Fixing the Racial Wealth Gap.” His website is www.rodneyabrooks.com
Your use of any financial advice is at your sole discretion and risk. Seniorplanet.org and Older Adults Technology Services from AARP make no claim or promise of any result or success.
