New research reveals how the psychology of mortality influences estate planning, life insurance, annuities, charitable giving, healthcare decisions, and inherited wealth—and how financial advisors can use these insights to improve client outcomes.

Why do clients who understand the importance of estate planning continue to put it off? Why can a small change in wording dramatically increase interest in an annuity? And why do so many beneficiaries spend inherited wealth much faster than anticipated?

The answers may have less to do with financial knowledge and more to do with human psychology.

During a recent Financial Experts Network webinar, Estate Planning: What Advisors Can Learn from End-of-Life Financial Decisions Across Insurance, Annuities, and Healthcare, Russell James, Professor in the School of Financial Planning at Texas Tech University, explored research revealing how reminders of mortality influence financial decisions.

Drawing on experimental studies and research involving estate planning, charitable giving, insurance, annuities, healthcare directives, and inheritances, James demonstrated that the way advisors introduce and discuss financial decisions can significantly affect client behavior.

His central message: Effective estate planning requires understanding not just what clients should do financially, but how they think and feel about decisions involving their own mortality.

1. Why Do Clients Avoid Estate Planning?

Estate planning is one of the clearest examples of a financial decision that forces individuals to confront their own mortality.

James introduced the psychological concept of mortality salience, which describes the awareness of one's own death.

Research suggests that mortality reminders generally trigger two types of responses.

Response One: Avoidance

For many people, the immediate response is to avoid thinking about the issue.

This may involve procrastinating, dismissing the urgency of planning, becoming distracted by other priorities, or avoiding conversations about death altogether.

Clients may acknowledge that they need a will, trust, or healthcare directive while repeatedly postponing the process.

James noted that approximately half of Americans age 55 and older lack estate planning documents, illustrating the widespread nature of this challenge.

Response Two: The Desire for a Lasting Legacy

When individuals move beyond avoidance, a different motivation often emerges.

They become interested in creating something that continues after their lifetime.

Psychologists describe this as symbolic immortality: the desire for one's values, identity, relationships, and life story to endure.

This may involve providing for children and grandchildren, establishing charitable legacies, supporting a surviving spouse, or preserving family wealth across generations.

Advisor takeaway: Clients may resist conversations centered on death but respond positively to discussions about protecting loved ones and creating a meaningful legacy.

2. The Words Advisors Use Can Change Client Decisions

One of the most compelling findings from the webinar was how strongly wording can influence financial behavior.

James presented research involving annuities, which naturally require individuals to consider how long they might live.

In one experiment, approximately 40% of individuals contemplating an annuity reported death-related thoughts, compared with just 1% of those contemplating an IRA.

Even more revealing was how people responded to different descriptions of the same annuity.

Participants showed greater interest when payments were described as continuing:

Each year you live

Interest declined when the identical payments were described as continuing:

Each year you live until you die

The financial product had not changed. Only the language had changed.

James explained that explicitly mentioning death activated psychological avoidance, reducing interest in the annuity.

The same principle applies to life insurance.

Instead of beginning a conversation by asking clients to consider their death, advisors might discuss protecting a spouse's retirement security or ensuring children can complete their education.

Once clients recognize the positive purpose of the planning, insurance becomes a natural part of the conversation.

Advisor takeaway: Lead with the financial benefit clients want to achieve, rather than the mortality-related event the product addresses.

3. Don't Lead With Death: A Better Approach to Estate Planning Conversations

James emphasized that advisors seeking greater participation should avoid making death the central theme of their initial outreach.

Consider two approaches to attracting clients to an educational event.

One promotes a seminar about preparing for death.

The other focuses on protecting family assets, reducing taxes, and planning for a financially secure future.

Although both programs might eventually cover the same estate planning strategies, the second approach is likely to attract a broader audience.

James shared an example involving a charitable organization that mailed approximately 30,000 estate planning appeals emphasizing death and received no response cards.

The organization later introduced charitable bequests within a broader survey about supporters' interests and charitable activities.

That survey generated a 22% response rate.

A subsequent mailing to nonrespondents produced an additional 18% response rate.

The organization was essentially asking for the same information, but the less threatening approach generated substantially greater engagement.

Practical Conversation Starters

Advisors might begin with questions such as:

• What financial opportunities would you most like to create for your children or grandchildren?
• Are there family values or traditions you would like to preserve?
• What would make financial decisions easier for your family in the future?
• Are there charitable organizations or causes that have played an important role in your life?
• What would you like your wealth to accomplish over the next generation?

These questions introduce estate planning through positive objectives rather than fear.

Advisor takeaway: Estate planning conversations can begin with family, financial security, and personal values before moving into the technical details of wills, trusts, and beneficiary arrangements.

4. Why Legacy Planning Is So Powerful

When clients begin thinking about their own mortality, research suggests they become increasingly interested in creating a lasting positive impact.

James described how this motivation can influence decisions involving life insurance, charitable gifts, family trusts, and retirement income.

For example, clients may be more receptive to an inheritance strategy when it is presented as a way to provide educational opportunities for grandchildren or financial security for future generations.

The same psychological principle applies to charitable giving.

James discussed research involving nearly 10,000 participants who evaluated different descriptions of charitable bequests.

The most effective wording connected the charitable gift to supporting causes that had been important during the donor's life.

Why does this work?

Because charitable giving becomes more than a financial transaction. It becomes an extension of the client's personal story.

James also described brain-imaging research suggesting that charitable estate planning decisions activate areas associated with autobiographical memory.

In other words, individuals often connect charitable gifts to meaningful experiences, relationships, and personal identity.

Advisor takeaway: Rather than beginning with how much a client wants to leave to charity, explore why particular causes matter and how charitable giving can reflect the client's life story.

5. A Simple Change in Language Tripled Charitable Bequests

One of the webinar's most striking examples involved the power of social norms.

James described an experiment involving approximately 3,000 people completing actual estate planning documents.

Participants were randomly assigned to different groups.

Some received no charitable giving prompt. Others were asked whether they wanted to leave money to charity.

A third group received a statement explaining that many other people like to leave money to charity in their wills.

The results were significant.

• 3 times as many participants included charity in their wills when presented with the social-norm statement.
• 2 times larger average charitable gifts were recorded in that group.
• 6-fold combined effect on charitable bequest giving, as described by James.

He explained that similar findings were replicated in U.S. research.

The lesson is not that advisors should pressure clients to make charitable gifts.

Instead, accurately presenting charitable planning as an option that other people consider can make the subject feel more familiar and approachable.

Charitable Estate Planning Can Also Increase Current Giving

James highlighted another important finding: research showed that individuals increased their current charitable giving by approximately 77% after adding a charity to their estate plans.

He suggested that including charity in an estate plan changes how individuals think about philanthropy.

Rather than viewing donations solely as discretionary spending from current income, clients begin considering charitable giving as part of their overall wealth.

Advisor takeaway: Estate planning discussions may create opportunities to help clients integrate lifetime charitable giving with their long-term philanthropic goals.

6. The Same Psychology Applies to Healthcare Directives

The webinar demonstrated that mortality-related avoidance extends beyond financial products.

James discussed research involving advance healthcare directives, including living wills and healthcare powers of attorney.

A death-focused intervention was less effective at encouraging completion of these documents than a positive approach emphasizing healthy aging.

He also highlighted research identifying an effective message for living wills: explaining that many people complete these documents to relieve family members of difficult decisions.

This approach works because it connects an uncomfortable planning topic to a positive family benefit.

Instead of focusing exclusively on incapacity or end-of-life medical decisions, advisors can explain how healthcare directives may reduce uncertainty and emotional stress for loved ones.

Advisor takeaway: Position healthcare planning as an opportunity to protect family members from difficult decisions, rather than simply preparing for a medical crisis.

7. Why Do So Many Heirs Spend Their Inheritances So Quickly?

Perhaps the most surprising part of the webinar involved the psychology of inherited wealth.

James presented research published in 2026 examining inheritance outcomes among adults age 50 and older.

The findings revealed that:

42% of heirs age 50 and older experienced a decline in net worth to or below their pre-inheritance level within approximately 12 months of receiving an inheritance.

James also discussed research indicating that much inherited wealth is depleted within several years, with the largest inheritances generally taking longer to dissipate.

These findings raise an important question: Why do individuals who manage their own money responsibly sometimes behave differently after receiving an inheritance?

James suggested that inherited wealth carries an emotional burden that ordinary financial assets do not.

The money is directly associated with the death of a loved one.

For some heirs, that association may encourage rapid spending because the assets serve as an uncomfortable reminder of loss.

Other heirs respond in the opposite direction.

They refuse to spend inherited money because they feel obligated to preserve it as a symbol of their loved one's memory.

Both reactions demonstrate how inherited assets can become emotionally different from money accumulated through earnings or investments.

Advisor takeaway: Advisors should not assume that financially responsible heirs will automatically manage inherited assets in the same way they manage their existing wealth.

8. Should Clients Leave Their Inheritance as One Lump Sum?

James challenged the assumption that transferring an entire inheritance immediately at death is always the best approach.

Given the research on inherited wealth, he encouraged advisors to discuss whether clients want their assets to create immediate financial flexibility or a lasting stream of support.

One practical question advisors can ask is:

How much of your inheritance would you like your heirs to receive immediately, and how much would you prefer to distribute over time?

Depending on the client's objectives, possible strategies may include:

• Trusts providing distributions over time.
• Income arrangements designed to support beneficiaries.
• Educational funding provisions for children or grandchildren.
• Incentive-based distributions tied to employment or other goals.
• Asset protection provisions.
• Structured payments or annuity arrangements where appropriate.

James also suggested that some clients may benefit from providing heirs with explicit instructions about acceptable uses of inherited funds.

For example, a parent might explain that inherited money is intended to help a child purchase a home, travel, or improve financial security.

Such guidance may reduce the emotional uncertainty heirs experience when deciding whether to spend inherited assets.

Is There a Minimum Inheritance That Requires a Trust?

During the question-and-answer session, James was asked whether a particular dollar amount should trigger more sophisticated inheritance planning.

His response emphasized that the client's goals—not a specific dollar threshold—should determine the planning structure.

If clients are comfortable allowing heirs to spend the inheritance freely, complicated restrictions may be unnecessary.

If they want the wealth to support beneficiaries over many years, additional planning may be appropriate.

Advisor takeaway: Inheritance planning should focus on the intended purpose of the wealth, not simply the amount transferred or the potential tax consequences.

9. Family Dynamics Can Make Estate Planning More Complicated

The audience discussion explored several situations in which family relationships can complicate estate planning.

Blended Families

James discussed emerging research suggesting that married individuals in blended families may be less likely to complete estate planning documents than those in traditional nuclear families.

This is particularly concerning because blended families may have more complicated beneficiary relationships and competing financial interests.

He suggested that avoidance of potentially difficult family conversations may contribute to the lack of planning.

Choosing Trustees and Executors

James also discussed the potential for conflict when one sibling is placed in charge of decisions affecting other family members.

For families with substantial wealth or complicated relationships, an independent professional trustee may help reduce disputes.

However, the appropriate arrangement depends on the estate's size, complexity, and family circumstances.

Special-Needs Beneficiaries

The discussion also addressed families with special-needs beneficiaries.

James recognized that certain situations may benefit from family members serving in support or guardianship roles because of their personal knowledge and relationships.

These arrangements require careful coordination with appropriate legal and financial professionals.

Advisor takeaway: Estate planning should account for family relationships, potential conflicts, and beneficiary needs—not merely the distribution of assets.

10. Five Practical Lessons Financial Advisors Can Apply Immediately

The research presented by Russell James offers several practical opportunities to improve client engagement.

1. Start with positive financial goals. Introduce estate planning through family protection, financial security, and legacy objectives rather than death-related concerns.

2. Choose language carefully. Small wording changes can influence how clients respond to annuities, insurance, charitable giving, and healthcare planning.

3. Connect recommendations to personal values. Ask clients what they want their wealth to accomplish and which people or causes matter most to them.

4. Discuss inheritance outcomes before designing distributions. Help clients understand that receiving inherited wealth can create emotional and behavioral challenges.

5. Make planning structures reflect the client's intentions. Consider whether lump-sum distributions, ongoing income, trusts, or written guidance best support the desired outcome.

These approaches do not replace sound financial, legal, or tax planning. They help advisors communicate those strategies in ways that clients are more likely to understand and act upon.

Five Common Questions and Answers About Estate Planning Psychology

1. Why do clients procrastinate when it comes to estate planning?

Research suggests that thinking about one's mortality can trigger avoidance behaviors, including procrastination and reluctance to discuss wills, trusts, and end-of-life decisions.

Russell James explained that this response can occur even among clients who understand the financial importance of planning.

Financial advisors can encourage greater engagement by introducing estate planning through positive objectives, such as protecting loved ones, preserving family wealth, and creating a lasting legacy.

Rather than beginning with the consequences of dying without a plan, advisors can focus on what clients want their wealth to accomplish for the people and causes they care about.

2. How can financial advisors make estate planning conversations more effective?

The language advisors use can significantly influence client responses.

James recommends introducing planning through family protection, financial security, personal values, and meaningful goals rather than emphasizing death.

Research also suggests that accurate social-norm statements can help normalize estate planning decisions.

For example, explaining that many people choose to include charitable gifts in their wills may encourage clients to consider whether philanthropy belongs in their own estate plans.

The objective is not to pressure clients, but to make potentially uncomfortable conversations more approachable and relevant.

3. Why does the wording used to describe annuities matter?

Experimental research found that individuals expressed greater interest in annuities described as providing payments each year they live rather than payments continuing until they die.

Although the financial benefits were identical, the death-related wording increased psychological avoidance.

James explained that annuities can remind clients of their mortality because the payments are connected to longevity.

Advisors may improve communication by emphasizing lifetime income, retirement security, and protection against outliving assets while clearly explaining the product's actual terms, costs, risks, and limitations.

4. Why do some beneficiaries spend inherited wealth so quickly?

Inherited money often carries emotional associations with the death of a loved one.

James presented research showing that 42% of heirs age 50 and older experienced a decline in net worth to or below their pre-inheritance level within approximately 12 months.

Some beneficiaries may spend inherited funds quickly, while others avoid spending them altogether because they feel obligated to preserve the money.

James emphasized that these behaviors can occur even among individuals who otherwise manage their finances responsibly.

Advisors can help families anticipate these challenges and consider distribution strategies that support the client's intended financial outcomes.

5. Should clients leave their inheritance as a lump sum or distribute it over time?

There is no universal answer.

James emphasized that the appropriate strategy depends on the client's goals rather than a specific inheritance amount.

Clients who want their wealth to provide long-term financial support may consider trusts, structured distributions, or income arrangements.

Others may prefer to give beneficiaries unrestricted access to inherited assets.

Advisors should explore how much clients want heirs to receive immediately, whether ongoing financial support is important, and whether written instructions could help beneficiaries understand the intended purpose of the inheritance.

The central consideration is whether the distribution strategy supports the client's wishes and the needs of the beneficiaries.

The Bottom Line: Estate Planning Is About More Than Money

Estate planning involves some of the most personal decisions clients will ever make.

It requires individuals to consider their mortality, family relationships, personal values, financial responsibilities, and hopes for future generations.

Russell James's research demonstrates that these emotional and psychological factors can influence whether clients begin planning, which strategies they select, and how beneficiaries ultimately use inherited assets.

For financial advisors, the opportunity is significant.

By understanding the psychology behind financial decisions, advisors can help clients overcome avoidance, engage in meaningful conversations, and create plans that reflect what matters most to them.

The ultimate goal of estate planning isn't simply to transfer wealth. It's to help clients create a lasting impact that reflects their values, supports their loved ones, and carries their intentions into the future.

About the Webinar

Estate Planning: What Advisors Can Learn from End-of-Life Financial Decisions Across Insurance, Annuities, and Healthcare was presented by Russell James, Professor in the School of Financial Planning at Texas Tech University, through Financial Experts Network on October 22, 2026.

The webinar explored behavioral research related to mortality, estate planning, life insurance, annuities, charitable giving, healthcare directives, and inheritance decisions.

For additional research, presentations, and educational resources from Russell James, visit EncourageGenerosity.com.

Visit Financial Experts Network for webinar replays, educational summaries, and continuing education opportunities for financial professionals.

Educational Disclaimer: This article summarizes research and concepts discussed during the webinar and is intended for educational purposes. The research findings describe study populations and should not be interpreted as predictions for individual clients. Estate planning, insurance, annuity, trust, and healthcare strategies should be evaluated in consultation with qualified financial, legal, and tax professionals.