What? Boomers Who Want To Leave An Inheritance?

If they don't say, the advisor can notice how they describe their lives. For instance, Lubbers says he has noticed that boomers who put away a good percentage of their own incomes tend to want to leave an inheritance to their kids. "Typically, they are in a dual-income family. They see their parents living a long time, and they want to protect their assets, not waste them." They will come back for visits, and they talk easily about their plans, he says.

Other boomers may indicate that they have not accumulated as much as they should have, he continues. Often, they are looking to get something from someone else rather than thinking about what to leave to their own heirs. These are boomers who usually have not yet planned to leave an inheritance, he says.

Even some wealthy boomers have not yet started planning, Lubbers notes. They tend to focus more on getting something from someone else, he says. "They'll say something like, 'Here's what I have and I want to get the best return'…You have to encourage them or push them a bit to think differently and to come back for more visits."

Other wealthy boomers are very receptive, however. For instance, Grant of California points out that older boomers, now in their 60s, tend to be wealthier than their younger counterparts. In this case, the advisor can encourage the boomer to start estate planning (if not already done) by raising questions about the non-financial aspects of inheritance, he says.

These boomers often use the internet and generally feel better informed about the financial aspects of life, Grant says. "But they don't know how to make sure their kids don't become spoiled. Or, they don't know how to make sure they pass on their values to their heirs."

In such instances, the advisor can approach the planning sessions as an educational tool. Specifically, have discussions about family matters that go along with the estate documents, he suggests. Point out that "this is not just a succession plan but also an educational plan."

For instance, he might point out to such a client that asset preservation is not sufficient. "If we just preserve and don't improve, that's not what life is about."

He does the cash flow analysis to ensure the client is taken care of and won't run out of money. But he says he then moves on to ways to leave a legacy consistent with the non-financial aspects discussed earlier.

Boomers who receive such an education end up better off and more centered, he says.

What if a boomer still does not want to make a formal estate plan or do any of the related financial activities? "I don't want them as clients," says Grant, echoing the views of several advisors contacted by National Underwriter in recent years. "I try to send them to someone else."

But boomers who have not yet started legacy planning are not always a lost cause.

Grant says he is seeing more boomers who are becoming cognizant of how they invest their money. That is a place to start, he indicates. They are developing "a more self-aware–as opposed to selfish–investment philosophy," he says, because they don't want to outlive their money.

Similarly, Lubbers of Kansas has noticed that in the past 2 years, more of the all-for-me boomers have been coming back, saying they don't want to blow it all, that they need to protect their money and leave something to the kids. An unexpected event often triggers this new attitude, he says. An example is when someone in the family is laid off, making the boomer become worried or panicky. This changes perceptions and expectations, he says.

"When everything is going good, it's hard (for the boomers) to think that way," Lubbers observes.

At such times, Lubbers will respond by doing some comprehensive planning, the goal being to "put them in the court" as much as they will allow. If the boomer asks for more, he will then expand the planning.

Can an advisor inject a jolt so the boomer doesn't have to experience an unfortunate event before being motivated to change?

Perhaps, says Lubbers. "Maybe remind them of layoffs that occurred locally, or talk about someone the boomer knows who had something happen (that upset their plans)."

That's easier to do in a small town than a big town, he allows. If successful, the advisor then can make the point that things like this could happen to the boomer, too. "It can start the conversation," he says.

Funkhouser believes that when the student is ready, the teacher will appear.

"Too many times, we're talking to a wall," he explains, noting that some boomers just say their heirs will get what's left over–and that's it. He says he attempts to raise a values-based discussion and to provide some education–for instance, by pointing out that it's not a plan to say that "the heirs will get what's left over." He says he tries to cultivate a relationship of trust. But if he can't get anywhere, he moves on. It's a matter of rate of return on emotional investment, he says.

That doesn't mean Funkhouser gives up on boomers who have not yet planned their estates. "We all go through periods when we are more receptive and less receptive…The boomers will get there."