The Legendary Rich Relative And Inheritance Problem

In the field of finance and behavioral counseling, there is an oft-repeated hypothetical presented to professionals in the industry that call for them to recognize that people have different priorities when it comes to reaching goals. Often called the “Rich Grandparent”, “Rich Uncle”, “Rich Aunt” or merely “Rich Relative” hypothetical, the problem goes like this:

Your rich relative dies and leaves a will making you one of several beneficiaries—the gift you are set to receive is $20,000 in cash. However, a will contest has been filed by other relatives not mentioned in the will and the case is due for trial in two years. If the will contest is successful, you will get $0 (there is a second, earlier will that will be introduced at trial in which you are not included).

You have received a settlement offer for $7,500 (after all applicable fees), and you would receive the money … Read the rest of this article!