Glossary

2503(c) trust

A trust for a minor where gifts for the minor child qualify for the gift tax annual exclusion if the child has to withdraw all of the trust assets at age 21. • Also called an "irrevocable minor's trust."

abeyance

(1) Temporary suspension. • Example from Harbor Tech LLC v. Correa, 73 Misc.3s 1211(A), 2021 N.Y.Slip Op. 50995(U) (Kings Co. Civil Court Oct. 14, 2020, Stoller, J.): "ORDERED that the entirety of Petitioner's motion and the balance of Respondent Correa's cross-motion in Harbor Tech LLC v. Correa, Index # 60788/2019 (Civ. Ct. Kings Co.) remains in abeyance pending the stay of that proceeding . . . ."

(2) In property law, the opposite of vesting. • Black's Law Dictionary (10th Ed.) defines abeyance as "[a] lapse in succession during which no person is vested with title." • Example: "Allen, J. By the assignment of the 2d of July, 1875, and the acceptance of the trust by the defendants and Trimble the assignees named therein, the property real and personal of the assignors, vested in the assignees in trust for the creditors. The title did not remain in the assignors, nor was it in abeyance awaiting the giving of security by the assignees as required by the statute, or the performance of any condition subsequent to the assignment. The creditors of the assignors acquired an interest in the assigned estate, and could enforce the execution of the trust." Brennan v. Willson, 71 N.Y. 502 (1877).

abstract fees

Expenses that a real estate buyer generally pays to research the property's title.

accumulation planning

Planning that focuses on building wealth so an individual can have enough assets on which to retire. • Accumulation planning includes retirement planning and allocating assets between different classes of investments (such as bonds and stocks). Accumulation planning is performed by financial advisors, who typically invite the assistance of attorneys (to draft trusts and other estate planning instruments) and accountants (to prepare tax returns and assist with complex tax planning). See estate planning; c.f. decumulation.

activities of daily living (ADLs)

Basic personal tasks of everyday life: Bathing, dressing, toileting, transferring (walking), and continence.

ademption

The “extinction or withholding of some legacy in consequence of some act of the testator which, though not directly a revocation of the bequest, is considered in law as equivalent thereto, or indicative of an intention to revoke.” In re Dittrich, 53 Misc. 2d 782, 784, 279 N.Y.S.2d 657, 660 (Sur. Ct., Queens Co. 1967).

adjournment

The postponement of a court proceeding by a judge. • A judge can adjourn a case for the judge’s own reason or at the request of one of the parties to the case. The judge halts the proceeding and sets a date for the parties to return to court.

administrator cum testamento annexo (c.t.a.)

An administrator c.t.a. is appointed to act as a personal representative in a probate proceeding in any one of three circumstances: (1) The will does not name an executor. (2) The will names an executor, does not name a successor executor, and the named executor cannot qualify as the executor of the estate. (3) The will names an executor, names a successor executor, and both the named executor and the successor executor cannot qualify as the executor of the estate. • Reasons executors (or successor executors) can fail to qualify include: (1) Refusing to accept the appointment, (2) dying before or during a probate proceeding, or (3) becoming mentally incapacitated before or during the probate proceeding. • An administrator c.t.a. to whom letters have been issued is an executor (SCPA 103(20)) and a fiduciary (SCPA 103(21)). • See executor, fiduciary.

administrator de bonis non (d.b.n.)

After an administration proceeding is commenced, an administrator d.b.n. may be appointed to complete the administration of the estate if the administrator dies, resigns, becomes incapable of serving, or for any other reason is removed from office. See executor, fiduciary.

advance-and-protect strategy

An investment strategy that attempts to reduce risk by looking for investment opportunities to capture growth when the market is rising, but getting out of investments to protect principal when the market is falling. • Advance-and-protect strategy differs from the traditional diversification approach, which rides things out in rising and falling markets. It is touted to be good for retirees. See Jacqueline Sergeant, How One Firm Shields Retirees From Market Volatility, Financial Advisor, April 1, 2022 (reporting about Piershale Financial Group, who uses the advance-and-protect strategy and just "rotated to 100% cash for the time being").

affidavit

A written statement of facts made voluntarily and under oath.

answer

A pleading that states the defendant’s position to the case.

annuitant

The beneficiary of an annuity.

asset protection

Planning that shields assets from plaintiffs, ex-spouses, and other creditors. • See estate planning.

Battle of Hastings

A battle in 1066 in which William the Duke of Normandy defeated the Anglo-Saxon King, Harold II, and became King of England.

bear market

A drop of at least 20% from a recent peak.

bench trial

A trial by a judge, as opposed to a trial by jury.

beneficiary

A person who is entitled to some or all of an estate. See NY SCPA 103(8).

Billionaire Minimum Income Tax

A tax proposed by President Biden on households worth at least $100 million. It is a 20% levy on all income and unrealized appreciation on investments. See Hani Sarji, Biden Proposes Billionaire Minimum Income Tax in 2023 Budget, But It's a Gimmick, Wills, Trusts, Estates, April 12, 2022.

boundary line agreement

A means of resolving a dispute over the boundary line between properties. This agreement avoids litigation to determine the exact boundary of properties.

brownfield site

Land that was previously used for industrial or commercial purposes and that may be contaminated by toxic waste. • A brownfield site is sometimes simply called a "brownfield."

burgage tenure

In feudal times, a tenure that prevailed in some places by custom that provided that on the death of an owner, land descended to the youngest son. C.f. gavelkind tenure, primogeniture.

bylaws

An internal corporate document that contains the rules for the corporation for such things as meetings and voting. • Bylaws of a corporation are “internal” because they are not filed with the state.

callable certificate of deposit

A callable certificate of deposit is a certificate of deposit (CD) that allows the issuer (not the purchaser) to redeem the CD after a specified period of time. • The issuer is likely to redeem the certificate of deposit when interest rates decline. The purchaser's CD could end upon maturity, upon redemption by the issuer, or upon the purchaser's sale of the CD on the secondary market. Like all CDs, a callable certificate of deposit presents a significant lock-in risk to purchasers who might need the funds prior to maturity. See Hani Sarji, What Is a Callable Certificate of Deposit?, Wills, Trusts, Estates, April 2, 2022.

capital gains tax

A tax on the sale of an asset (such as a home, stocks, or cryptocurrency).

capital loss

A loss from the sale of an asset for less than its purchase price.

catch-up contribution

If permitted by a 401(k), 403(b), governmental 457(b), SARSEP or SIMPLE IRA plan, participants who are age 50 or over at the end of the calendar year can also make catch-up elective deferral contributions beyond the basic limit on elective deferrals. See elective deferral contributions.

codicil

An amendment to a previously executed will. • A codicil can add to, modify, or revoke parts of a will. EPTL 1-2.1. It can confirm the will in whole or in part by republication. Id. But a codicil cannot revoke the entire will. Id. A codicil must be executed with the same formalities as a will (which are set forth in EPTL 3-2.1) because the term “will” generally includes a “codicil.” EPTL 1-2.19(b).

collateral heirs

Cousins, nieces, nephews, uncles, and aunts.

Committee for a Responsible Federal Budget

A nonpartisan, non-profit organization that educates the public and policymakers on issues with significant fiscal policy impact and advocates for fiscal responsibility. https://www.crfb.org/

community spouse

For purposes of Medicaid, the spouse who does not need long-term or nursing home care. This spouse continues to live in the community.

CPLR § 408

In New York, "[d]iscovery in special proceedings is not as broad as in other civil proceedings. CPLR 408 governs discovery in special proceedings and requires leave of court for any disclosure with certain exceptions . . . ." Matter of K.Z. v. P.M., 29 Misc. 3d 572, 2010 NY Slip Op 20335 (Family Court Orange Co. 2010). • Failing to obtain leave of court for disclosure can be used to challenge a discovery subpoena in special proceedings (such as landlord and tenant summary proceedings). Example: "In reply to Respondent Soto's opposition that Petitioner did not satisfy the elements necessary for leave to obtain discovery pursuant to CPLR §408, Petitioner's counsel affirms, inter alia, that the subpoena is a trial subpoena, not a discovery subpoena." Harbor Tech LLC v. Correa, 73 Misc.3s 1211(A), 2021 N.Y.Slip Op. 50995(U) (Kings Co. Civil Court Oct. 14, 2020, Stoller, J.).

creator

See settlor.

Danegeld

In feudal times, a direct tax levied throughout England.

death-put redemption clause in a certificate of deposit

A feature in a certificate of deposit that allows a decedent's estate to redeem the CD at face value in the event the holder of the CD dies before the CD's maturity date. • See Hani Sarji, What is a Death-Put Feature of a Certificate of Deposit?, Wills, Trusts, Estates, April 3, 2022.

death tax

A term that applies either to an estate tax or an inheritance tax.

decumulation

The phase in life when someone retires and must live off of their retirement savings without running out of money. • See Stephen Chen, Why Retirement Decumulation Is The New Accumulation, Forbes, Sept. 30, 2019 ("It’s much more complex than the accumulation of assets.").

de facto

Existing in fact; having effect even though not legally recognized. C.f. de jure.

de jure

Existing according to law. C.f. de facto.

demesne

Part of a manor either kept by a lord in his own hands or farmed for his own profit.

dependent tenure

In medieval England, after the Norman conquest, the principle that except for the king, every person holds land under some lord. • See tenure.

designated Roth contribution

A type of employee retirement contribution where a portion of an employee’s salary is withheld after-tax and transferred into an employer-sponsored retirement plan — 401(k), 403(b), or governmental 457(b) plans. • Unlike pre-tax elective contributions, designated Roth contributions are currently includible in gross income but tax-free when distributed. If a plan permits designated Roth contributions, it must also offer pre-tax elective deferral contributions. • C.f. elective deferral contribution.

devisable

The right to transfer property at death by a will.

devise

Traditionally, the transfer of any property at death by a written document called a "will." Today, the term is limited to transfers of real property by will. • NY SCPA § 103(12) defines the word devise when used as a noun as "a transfer of real property by will," and it defines devise when used as a verb (i.e., "to devise") as "to transfer real property by will."

devisee

A person who receives real property under a will. • See NY SCPA § 103(13).

disclaim

To reject a gift or a share in or payment of an estate. • New York uses the term "renunciation" instead of disclaimer.  • A disclaimer is neither an assignment nor a release. In a disclaimer, the donee refuses something. In an assignment or release, the donee accepts something before transferring it.

discretionary power of appointment

A power of appointment that permits the donee to exercise or not exercise it. NY EPTL 10-3.4(c).

disposition

NY EPTL 1-2.4 defines a disposition as "a transfer of property by a person during his lifetime or by will. Under this definition, property received from an intestate decedent is not received through a disposition because it is received neither through a lifetime transfer nor by will. Also, a court held that a surviving spouse's withdrawal from a bank account that was owned jointly with the decedent spouse is not an abatement of estate assets because it is not a disposition -- the transfer was made by the surviving spouse, not the decedent. Mason v Mason, 657 N.Y.S.2d 214 (App. Div. 3d Dep't 1997).

Domesday Book

A survey of England that William the Conqueror ordered in 1086. It is England's earliest surviving public record. • "One explanation for the name of the book is that the records were deemed by the populace to be as conclusive as the day of judgment. See, 2 Holdsworth, History of English Law 163 (1927)." Cornelius J. Moynihan & Sheldon F. Kurtz, Introduction to the Law of Real Property (7th ed. 2020) (affiliate link). • You can search the Domesday Book at https://www.nationalarchives.gov.uk/domesday/

donor

(1) Respecting powers of appointment: "the person who creates or reserves a power." EPTL 10-2.2(a).

(2) Respecting trusts: See settlor.

draftsmanship

"[T]he art of expressing in a will the known desires of the testator." Jule E. Stocker, Jonathan J. Rikoon, Pamela R. Champine, & Janine Racanelli, Practising Law Institute: Stocker and Rikoon on Drawing Wills and Trusts (2011) (explaining, "We occasionally use less current terms for their nuances: 'draftsmanship' connotes more art than 'drafting' even though it includes a reference to the time when all drafters were draftsmen.").

dwelling

"[A]ny building or structure or portion thereof which is occupied in whole or in part as the home, residence or sleeping place of one or more human beings." NY MDL § 4(4)). • See multiple dwelling.

dynasty trust

A trust that remains in place for multiple generations.

elective deferral contribution

A type of employee retirement contribution where a portion of an employee’s salary is withheld pre-tax and transferred into an employer-sponsored retirement plan — 401(k), 403(b), or SIMPLE IRA plans. • The employee contribution is generally a percentage of the employee’s compensation, but some plans permit the employee to contribute a specific dollar amount each pay period. • Also called “salary reduction contribution.” C.f. designated Roth contribution.

enfeoff

In feudal times, to give land. • Responding to the 1166 questionnaire by Henry II asking about the number of knights enfeoffed on the tenant's land and the number required by his service, the return of the Archbishop of York wrote, "[O]ur predecessors enfeoffed more knights than they owed to the king, and they did this, not for the necessities of the royal service, but because they wished to provide for their relatives and servants.” Douglas and Greenaway, 2 English Historical Documents 907 (Oxford Univ.Press, 1953), quoted in Cornelius J. Moynihan & Sheldon F. Kurtz, Introduction to the Law of Real Property 5 n.9 (7th ed. 2020) (affiliate link).

escheat

The consequence of someone dying without an estate plan and without an heir: The decedent's estate goes to the government. • In medieval times, the decedent's estate would escheat to the overlord. Today, it escheats to the state where the property is located. • See Estate of Clark, 271 A.D. 691, 696, 68 N.Y.S.2d 487 (App. Div. 4th Dep't 1947) ("[T]itle vests in the State at once, upon the death of a decedent, intestate and without heirs or distributees.").

estate

All of the assets that someone owns. • An "estate" can have a different scope depending on the context, including probate estate, non-probate estate, gross estate for purposes of the federal estate tax.

estate planning

Planning for the accumulation, preservation, protection, decumulation, and transmission of wealth. • Estate planning is an umbrella term that encompasses different types of planning, including planning for incapacity, retirement, charitable gifting, paying for long-term care, the transmission of wealth in a family during life and upon death, and tax minimization. Estate planning is distinguishable from estate administration, a process which effectuates the plan. • A good estate plan must anticipate its successful administration. A comprehensive estate plan looks at "wealth" broadly to include not only an individual's assets, but also values. • Estate planning professionals include financial advisors, accountants, lawyers, and fiduciaries. • "Reframe your thoughts about estate planning. It is not only morbid thoughts of dying. Estate planning should be as much planning for life: retirement, illness, disability, young kids, college, etc. . . . Estate planning means retirement, insurance, and other planning." Martin Shenkman, New Year's Estate Planning Resolutions, Forbes, Dec. 28, 2022 (Apple News link).

estate tax

An estate tax is imposed on the estate of a decedent for the privilege of transferring property at death. • The IRS defines the estate tax as "a tax on your right to transfer property at your death." C.f. inheritance tax.

executor

Someone who manages a decedent's testamentary estate by probating the decedent's will, marshaling the decedent's assets, notifying creditors and persons interested in the estate's assets, paying outstanding debts, and distributing the decedent's remaining assets according to the terms of the will. • NY SCPA 103(20) defines "executor" as "[a]ny person to whom letters testamentary have been issued." • See fiduciary.

fair market value

"[T]he price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts." Reg. § 20.2031-1(b).

fee

In feudal times, land granted in return for military service. Also called a "fief."

fealty

In feudalism, a vassal's sworn loyalty and allegiance to a lord.

feudalism

The social structure of medieval Europe. It was pyramidal with the king at the top and peasants who tilled the soil at the bottom; everyone in between was both a lord over someone and a tenant under someone. The basis of rights and duties was typically status, not contract.

fiduciary

New York EPTL 1-2.7 defines a fiduciary as "[a] person who meets the description, in this part, of a 'personal representative' or who is designated by the creator or by the court to act as an assignee for the benefit of creditors, or a committee, conservator, curator, custodian, guardian, trustee or donee of a power during minority." •  New York SCPA 103(21) defines a fiduciary as any of the following: (1) An administrator[*], (2) administrator c.t.a.[*], (3) administrator d.b.n.[*], (4) ancillary administrator[*], (5) ancillary administrator c.t.a.[*], (6) ancillary executor[*], (7) ancillary guardian[*], (8) executor[*], (9) guardian[*], (10) preliminary executor[*], (11) temporary administrator[*], (12) testamentary trustee [*], (13) the donee of a power during minority, (14) a voluntary administrator, (15) a public administrator acting as administrator, (16) a public administrator[*], (17) a county treasurer[*], and (18) a lifetime trustee. In this list, "[*]" signals two things: (1) SCPA 103(21) requires letters to be issued to that person before they are considered a "fiduciary." (2) That person is also an "executor" under SCPA 103(20), which defines "executor" as "[a]ny person to whom letters testamentary have been issued." • See executor.

fieri facias

Writ of execution directing a marshal or sheriff to seize and sell a debtor's property to satisfy a money judgment. • For example, Sands v. Codwise, 5 Johns. 536 (NY Court for Correction of Errors 1808), states (emphasis added), "When he stopped payment . . . judgment was entered up against him . . . . A fieri facias was soon after issued on the said judgment, which was levied on the household furniture, and other personal property of Comfort Sands, and on his dwelling-house in Pine Street, and another dwelling-house in Cedar Street. In November, 1798, the sheriff sold the personal property taken on the execution, at public auction, to the appellant . . . ."

final

Last; not necessarily free from error. • "There is no doubt that if there were a super-Supreme Court, a substantial proportion of our reversals of state courts would also be reversed. We are not final because we are infallible, but we are infallible only because we are final." Brown v. Allen, 344 U.S. 443, 540 (1953) (Jackson, J., concurring).

freeman

In feudal times, a man who was free and might hold land but who owed some services to his lord. C.f. slave.

future interest

An estate in land to which the holder is or may be entitled to possession in the future. C.f. present interest. See reversion.

gavelkind tenure

In feudal times, a tenure that prevailed in the county of Kent and had special rules, including that on the death of an owner, land descended to all of his sons equally. C.f. burgage tenure, primogeniture.

general denial

A pointed and total denial of everything in a complaint or a paragraph of a complaint. • Example of a general denial in an answer: "Defendant denies all the allegations of the complaint." • In New York, it is "[i]mproper for [a] lawyer to interpose general denial knowing that his client has no valid defense." Opinion #469 - 6/7/77 (64-77), New York State Bar Association.

generation-skipping transfer

Generally, a transfer that skips the estate tax for a generation.

generation-skipping transfer tax (GSTT)

A tax on wealth transfers that skip one or more generations. • The Reagan administration enacted the GSTT in the Tax Reform Act of 1986.

gig work

An activity that earns income through a digital platform (an app or website), including driving a car for booked rides or deliveries; renting out property or part of it; running errands or completing tasks; selling goods online, renting equipment; providing creative or professional services; and providing temporary, on-demand, or freelance work. See Manage Taxes for Your Gig Work, irs.gov; The Gig Issue, Millie, Fall 2022 (Apple News link).

governance

Rules, laws, or procedures that groups or entities adopt to provide a structure for communication, decision-making, accountability, and conflict resolution.

grantor

See settlor.

grantor trust

A trust in which the grantor of the trust is treated as the "owner" of all or part of the trust for income tax purposes.

heir

A person who may inherit under the default intestacy statutes in the absence of an estate plan. • Heirs are determined when someone dies.  See the definitions of "laughing" heir, collateral heirs, escheat, lineal ancestors, and lineal descendants.

holographic will

A will that is handwritten. See, e.g., North Dakota Supreme Court: Holographic Will Not Valid When Material Portions Not Proven To Be In Decedent’s Handwriting, Probate Stars, Jan. 11, 2022.

homage

In medieval times, a ceremony in which a vassal knelt before a lord, acknowledged himself to be his lord's man, and swore allegiance to the lord. Frequently, the lord made a grant of land to the vassal or gave the vassal an annuity.

honour

In medieval times, a larger baronial estate of a lord, which was comprised of numerous smaller estates that were held by different people. • "As many as 80 English estates, situated in different regions, were combined to compose a single lord’s honour. In the course of the Norman settlement, several thousand smaller estates were compressed into fewer than 200 major honours. The lords of these honours were the men who, with William, established the new English state." Cornelius J. Moynihan & Sheldon F. Kurtz, Introduction to the Law of Real Property 2 (7th ed. 2020) (affiliate link). •  See Norman Conquest.

human composting

Having one's body turned into soil after death. • In 2019, Washington was the first state to legalize human composting. Other states that allow it are California, Colorado, Oregon, New York, and Vermont. See James FitzGerald, New York approves composting of human bodies, BBC News (Apple News link).

"I love you" will

A last will and testament in which the testator bequeaths to the surviving spouse everything that the testator owns and can pass by probate. • An "I love you" will might be simple, but it has downsides. See Hani Sarji, "I Love You" Will Might Not Show Love to Surviving Spouse, Wills, Trusts, Estates, Feb. 12, 2022.

incidents of tenure

In feudal times, implied rights granted to a lord and implied obligations imposed on a tenant that were additional to the particular services required of a tenant to the lord. These rights arose from the feudal relationship, not from any express agreement by the tenant. • See tenure.

income-driven repayment (IRD) plan

A plan that allows student-borrowers to repay their student loans as a percentage of income, instead of a standard monthly payment that is based on the amount borrowed and the interest rate.

inheritable

Property that passes at death under intestacy statutes to the owner's heirs absent a will.

inheritance tax

An inheritance tax is imposed on each beneficiary of an estate for the privilege of receiving property from the dead. C.f. estate tax.

intentionally defective grantor trust (IDGT)

A trust that is treated as owned by its creator for income-tax purposes and by the beneficiaries for wealth-transfer tax purposes.

inter alia

Among other things.

intestacy law

The law that applies when someone dies without a will, with a will that is successfully challenged, or with a will that does not dispose of all of the decedent's probate estate.

intestate

Someone who dies without a will. C.f. testate.

"laughing" heir

A distant relative of a decedent (such as a distant cousin in a foreign country), who is said to be "laughing" because the relative rejoices at receiving an inheritance, instead of feeling remorse at the loss of the decedent.

letters

SCPA 103(24) defines "letters" as a category that includes (1) letters of administration, (2) letters of administration c.t.a., (3) letters of administration d.b.n., (4) limited letters of administration, (5) ancillary letters of administration, (6) ancillary letters of guardianship, (7) ancillary letters testamentary, letters of guardianship, (8) letters of temporary administration, (9) letters testamentary, (10) preliminary letters testamentary, and (11) letters of trusteeship." It further states, "A testamentary trustee who has qualified without the issuance of letters shall be deemed for the purposes of this act to have received letters of trusteeship." • SCPA 103(20) (defining an executor) and SCPA 103(2) (defining a fiduciary) mention "letters." • See executor, fiduciary.

life estate pur autre vie

A life estate for the life of another.

lifetime trust

A trust created while the settlor is alive. C.f. testamentary trust.

lineal ancestors

Parents, grandparents, and great-grandparents.

lineal descendants

Sons, daughters, grandchildren, great-grandchildren, etc.

loophole

A way of avoiding a tax that is intentionally provided by Congress or discovered by creative lawyers.

manor

In feudal times: An estate or unit of lordship, varying in size.

measuring life

For purposes of the rule against perpetuities: An identifiable person who is alive at the time that an interest in trust is created.

mediator

A mediator is a professional, neutral person who is trained to help litigants come to an agreement about their dispute without the need for a judge to decide it.

military tenure

In feudal times, land holding from a lord in exchange for a military service to that lord, which was an obligation of a tenant to supply a specified quota of knights to the lord. • See tenure. C.f. serjeanty tenure.

mortgage protection insurance

Insurance to pay a mortgage or any remaining debts after the insured dies. It "is simply a small term life insurance policy," explains Kelly Maxwell in Mortgage Protection Insurance For Seniors (2022 Update), Seniors Mutual, Aug. 23, 2022. The age limit for mortgage protection insurance is age 80.

multiple dwelling

NY MDL § 4(7) defines a "multiple dwelling" as "a dwelling which is either rented, leased, let or hired out, to be occupied, or is occupied as the residence or home of three or more families living independently of each other. On and after July first, nineteen hundred fifty-five, a 'multiple dwelling' shall also include residential quarters for members of personnel of any hospital staff which are not located in any building used primarily for hospital use provided, however, that any building which was erected, altered or converted prior to July first, nineteen hundred fifty-five, to be occupied by such members or personnel is so occupied on such date shall not be subject to the requirements of this chapter only so long as it continues to be so occupied provided there are local laws applicable to such building and such building is in compliance with such local laws. A 'multiple dwelling' shall not be deemed to include a hospital, convent, monastery, asylum or public institution, or a fireproof building used wholly for commercial purposes except for not more than one janitor's apartment and not more than one penthouse occupied by not more than two families. For the purposes of this chapter "multiple dwellings" are divided into two classes: 'class A' and 'class B.'" • See dwelling.

natural burial

Burial "in which a body is buried without a coffin or with a biodegradable coffin." James FitzGerald, New York approves composting of human bodies, BBC News (Apple News link). • Natural burials are permitted in the United Kingdom. Id.

net asset value

The bottom-line value of a fund's assets divided by the number of outstanding shares.

Norman Conquest

The Normans' defeat of the Saxons in 1066, which changed England's ruling class and system of land holding.

obiter

A part of a judicial opinion that is not necessary to deciding the case at hand. It is not binding on subsequent cases, but is considered persuasive. • Example: "The question was considered by Judge Grover in Juliand v. Rathbone (39 N.Y. 369), but it was not necessary to decide it as the judgment was necessarily as given, whether the court held the one way or the other on the point now under consideration. The remarks of the learned judge upon that branch of the case did not necessarily embody the views of the court and may be regarded as obiter, and the judgment as passing upon the other ground suggested by him." Brennan v. Willson, 71 N.Y. 502 (1877).

occupant

"[A] person, other than a tenant or a member of a tenant's immediate family, occupying a premises with the consent of the tenant or tenants." NY RPL § 235-f.

partnership

An unincorporated organization with two or more members.

petition

A formal, written application to a court requesting a judicial decision.

postponed power of appointment

A power of appointment that "is exercisable by the donee only after the expiration of a stated time or after the occurrence or non-occurrence of a specified event.” EPTL 10-3.3(d).

power of attorney

A document in which one person (the principal) empowers one or people (the agent) to make specified financial decisions on the principal's behalf.

predecease

To die before.

present interest

An estate in land to which the holder is currently entitled to possession. C.f. future interest.

preservation planning

Planning that focuses on preserving assets for the duration of an individual's retirement, with the possibility of benefiting loved ones during life or upon death. • For example, a financial advisor might create a wealth preservation plan that allows an individual to live off retirement assets while making annual gifts to children. See estate planning.

primogeniture

The common-law rule that land descended to the oldest son on the owner's death.

probate

The process by which a will is given effect after death.

pro tanto

To that extent. • Example: "[T]he wearing apparel remained a part of the assets of the estate and, having been turned over to and accepted by the objectant, must be deemed a pro tanto satisfaction of her distributive rights, with the resultant reduction of the sum to which she is entitled to $ 126.99."  Estate of Williams, 295 N.Y.S. 56 (Sur. Ct., Kings Co. 1937) (emphasis added).

public record

A record created by a government in the normal course of its business.

put

A financial contract that gives an investor the ability to sell an asset for a set price. • A put is a bet that the asset will trade lower.

relief

In feudal times, a sum paid by a deceased tenant's heir to the lord for the privilege of succeeding to the decedent's lands. • Relief "functioned as a sort of feudal inheritance tax. Inheritance was a privilege to be paid for, not an unconditional right." Cornelius J. Moynihan & Sheldon F. Kurtz, Introduction to the Law of Real Property 2 (7th ed. 2020) (affiliate link).

remedy of distress

In medieval England, a lord who was not provided a service owed by a tenant had the right to seize any chattels found on the land.

rent

"[T]he monthly or weekly amount charged in consideration for the use and occupation of a dwelling pursuant to a written or oral rental agreement." NY RPAPL § 702.

renunciation

See disclaim.

required minimum distribution (RMD)

For certain retirement accounts, the amount an individual must take.

res

Trust property  

reversion

A future interest in property that is retained when a transferor conveys a lesser estate than the transferor had. • A revision arises automatically by operation of law. • When a transfer is made by a will, the heirs of the transferor-testator retain the reversion because they are substituted by law for the decedent.

rule against perpetuities

The rule against perpetuities serves as a backstop to prevent dynasty trusts from eroding the estate and gift tax base. The common law rule against perpetuities is that an interest in trust is void unless it is certain to vest, if at all, no later than 21 years after the end of a “measuring life” (i.e., an identifiable person who is alive at the time the interest is created). See Hani Sarji, 🔑Even Under Common-Law Rule Against Perpetuities, Trusts Can Last for Over a Century, Wills, Trusts, Estates, Feb. 11, 2022.

salary reduction contribution

See elective deferral contribution.

scoring a bill

An estimate of the economic impact of a tax bill. Scoring examines: (1) What a bill would cost taxpayers; (2) how much money will come out of the Federal Treasury; and (3) in the case of a tax bill, how much the bill would generate or reduce income to the Federal Treasury. The Congressional Budget Office (CBO), a non-partisan office, does the scoring. See Sen. Chuck Grassley, Ask Chuck: What does it mean to “score” a bill?, YouTube, Sept. 15, 2009.

seisin

In feudal times, the possession of land.

self-declared trust

A trust in which the grantor and the trustee are the same person.

self-settled trust

A trust in which the grantor retains a beneficial interest (i.e., is a beneficiary).

serjeanty tenure

In feudal times, land holding from a lord in exchange for a personal, non-military service to that lord. • "Serjeanty" is derived from the medieval Latin word, "servientia," which means "service. • The king's administrative and household officials (such as the marshal, steward, butler, and chamberlain) provided serjeanty tenure, a non-military service. See tenure. C.f. military tenure.

settlement

An agreement between litigants about a case.

settlor

A person who creates a trust. Also called, "creator," "donor," "grantor," or "trustor."

shorting a stock

Betting that the price of a stock will decrease. • See Joanna Tan, Elon Musk says he confronted Bill Gates about shorting Tesla, CNBC, April 23, 2022 (Apple News link).

skip person

For purposes of the generation-skipping transfer tax, a transferee who is two or more generations younger than the transferor. IRC § 2613. Examples: (1) In a transfer from grandparent to a grandchild, the grandchild is a skip person. (2) In a transfer from a great-uncle to a great-niece, the great-niece is a skip person.

slave

In feudal times, a person who was the property of a lord and had no lands. C.f. freeman.

spendthrift clause

A clause in a trust that protects a beneficiary's interest from the claims of creditors.

stagflation

Periods of high prices and slow growth.

Statute of Wills (1540)

A law in England that allowed land to be devised. • Prior to the Statute of Wills, land descended to the eldest son, and landowners who wanted to deviate from primogeniture turned to uses.

statutory will

Another term for the laws of intestacy (or laws of descent and distribution). • Each state has enacted statutes that provide a default distribution scheme (i.e., a default estate plan) that approximates the disposition of assets that a typical person would make upon death.

subpoena ad testificandum

An order to a witness to appear in court and give testimony.

subpoena duces tecum

An order to a subpoenaed party to appear in court and bring specified documents. • "A subpoena duces tecum for use at a hearing is not the equivalent of an order of disclosure, but an order to the subpoenaed party to have the documents in court so that the court may make appropriate direction with respect to the use of such documents. People ex rel. Hickox v. Hickox, 64 AD2d 412, 413-14 (1st Dept. 1978)." Harbor Tech LLC v. Correa, 73 Misc.3s 1211(A), 2021 N.Y.Slip Op. 50995(U) (Kings Co. Civil Court Oct. 14, 2020, Stoller, J.).

sundowner’s syndrome

"[A] state of confusion occurring later in the afternoon and night often found in individuals with dementia or Alzheimer’s." Kelly Mould, Opinion: Cognitive Decline: how to spot it, what to do, MarketWatch, Jan. 21, 2023 (Apple News link).

target-date fund

A mutual fund that gradually adjusts asset allocation over time into more conservative categories as it approaches a target retirement age.

tax installment agreement

A long-term monthly payment plan through the IRS. If you owe $50,000 or less for tax, penalties, and interest; then you can set up an installment plan online. For larger amounts, you must call the IRS.

tax planning

Creating and implementing a plan to minimize taxes. • Tax preparation is essentially forward-looking. C.f. tax preparation.

tax preparation

Reporting income and deductions on a tax return. • Tax preparation is essentially backward-looking. C.f. tax planning.

tenant-in-chief

In feudal times, a person holding land directly under the king. In Latin, the term is "tenant in capite."

tenant in capite

See tenant-in-chief.

tenure

In feudal times, land holding from a lord in exchange for a service to that lord. • Typically, the service was military service (military tenure), but it could have been non-military in nature (serjeanty tenure).

testamentary substitutes

Ways of passing property at death other than a will. • Testamentary substitutes include lifetime trusts, joint ownership with a right of survivorship, and assets that have a beneficiary designation filled out (such as life insurance and retirement plan designations).

testamentary trust

A trust that is created under a will and takes effect after the testator dies. C.f. lifetime trust.

testate

Someone who dies with a will. C.f. intestate.

The New Domesday Book

A survey of Great Britain conducted in 1874. • See Domesday Book.

the observer effect

“[T]he fact that observing a situation or phenomenon necessarily changes it,” Ken Baclawski, The Observer Effect.

the TINA effect for stocks

A market in which bond yields are so low that stocks are the only investment choice. • "Tina" stands for "there is no alternative." Investing in just stocks instead of allocating funds between stocks and bonds is considered suboptimal. See Investopedia, TINA: There Is No Alternative. • For example, the "TINA effect" occurred in August 2019 when 60% of the stocks in the S&P 500 (1.7%) and most individual sectors offered dividend yields that exceeded the yield on 10-year U.S Treasury notes (1.640%). See Michael Wursthorn, Falling Bond Yields Make Equities Hard to Ignore, WSJ, Aug. 13, 2019 (Apple News link). • In April 2022, market conditions (falling stock prices and rising bond yields) signaled the end of the TINA effect. See Dion Rabouin, Wall Street Finds New Value in Cash as Global Fears Weigh on Markets, WSJ, April 25, 2022 (Apple News link).

Thrift Savings Plan (TSP)

A retirement plan for employees of the United States government, including members of the uniformed services. See https://www.tsp.gov/

trial by judge

See bench trial.

trust

A legal device in which a settlor transfers the legal title of assets to one or more trustees, who manage and distribute the assets to one or more beneficiaries.

trust protector

One or more people named in a trust to act in a non-fiduciary capacity to ensure the trustee is adhering to the trust grantor’s intent and wishes.

trustor

See settlor.

unrealized gain

An asset that has appreciated in value but has yet to be sold.

vassal

In feudalism, an individual who swore fealty to a lord.

venue

The place of a trial.

verification

A declaration swearing that the pleadings or statements made in a document are true. NY CPLR 3020 defines a verification as a “statement under oath that the pleading is true to the knowledge of the deponent, except as to matters alleged on information and belief, and as to those matters he believes it to be true.”

vest

When a beneficiary meets all of the conditions that are necessary for an interest in trust to take effect. • An unborn beneficiary's interest is always unvested because being born is one of the conditions that are necessary for vesting. • C.f. abeyance.

villein

In feudal times, a serf, not a slave. A villein had no rights against the villein's lord (other than protection) but had the rights of a free man against third persons. A villein could not leave the manor, which the villein worked for the lord. The villein had a humble dwelling on the manor.

warrant of eviction

The legal document allowing an eviction to occur.

wash sale

Selling or trading securities (such as stocks) at a loss, and then buying substantially identical securities within 30 days before or after the date of the sale.

waste

A doctrine that limits a life tenant's use of land.

wealth transfer

The transmission of wealth to others during life (by an outright gift or transfer to a trust) or upon death (by a will, trust, will substitute, or operation of law).

wealth-transfer taxes

Estate tax, gift tax, and generation-skipping transfer tax.

words of limitation

At common law, words in a conveyance that indicate the estate that has been created. • For example, in the grant "to A and his heirs," the words "and his heirs" are words of limitation. C.f. words of purchase.

words of purchase

At common law, words in a conveyance that identify the grantee. • For example, in the grant "to A and his heirs," "A" is the only word of purchase because it identifies the recipient of the property. C.f. words of limitation.