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“Employers’ propensity to hold on to workers even as the economy slows . . . .” Abha Bhattarai & Lauren Kaori Gurley, Labor market adds 236,000 jobs in March, powering economy on, Washington Post, April 7, 2023 (Apple News link).

A portfolio of bonds that mature at different set periods (such as every year) or that have short, medium, and longer maturity. The goal is to give you access to cash when the bonds mature without having to sell the bond. If you don’t need the cash, you can reinvest the proceeds in new bonds.

“A land trust is a trust of real estate wherein the settlor grants the realty to a trustee to have and to hold in fee simple. The trustee has full record title and under the terms of the deed in trust is entitled to all the rights, privileges and powers of record ownership. The deed in trust specifically states that a potential purchaser, lessee, mortgagee, or pledgee shall not be obliged to inquire into the authority of the trustee’s acts. This deed in trust is subject to a second document known as a land trust agreement which enumerates the beneficiary’s rights in relation to the trustee. It is important to remember, for purposes of marketability of title, that only the deed in trust is recorded. The unrecorded trust agreement lists the beneficiary’s rights with respect to the property which are: 1) the power to direct the trustee to convey or otherwise deal with the title to the property, 2) the right to manage and control the property and 3) the right to receive the proceeds and avails from the rental, sale, mortgage or other disposition of the property. The important distinguishing factor between a land trust and the so-called real estate investment trust (more commonly referred to as a business or Massachusetts trust) is that in the latter, the trustee actually manages the business by making the decisions and investing accordingly. In a land trust the duties of the trustee are severely restricted by the land trust agreement to acts affecting the title to the property and those acts can only be performed at the direction of the beneficiaries. Land Trusts in New York, 37 St. John’s L Rev. (1962) (footnotes omitted).

“[Y]ou . . . sell the most recently purchased securities. This option may mean your capital gains portion is lower and the principal is higher. This would allow you to withdraw more while keeping your capital gains low. It is another way to keep your taxable income below the bracket if you need more money in a specific year, assuming the securities were held for more than 365 days, classifying them as long-term capital gains.” Laila Maidan, How to pay 0% capital gains tax on up to $123,250 of income, Business Insider, June 22, 2024 (Apple News link). C.f. first in, first out (FIFO) method.

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.

“Lean FIRE is when someone has saved up 25 times their annual expenses–the traditional benchmark for financial independence–and spends less each year than the average American.” Tanza Loudenback, What is Fat FIRE vs. Lean FIRE? 2 different ways to retire early, Business Insider, Nov. 12, 2020 (Apple News link). “The average US household spends about $61,000 a year, according to Census data.” • “The [FIRE] movement even has offshoots, with some focusing on extreme frugality and others on building a large retirement fund or keeping a part-time job. For example, Lean FIRE represents those on the extreme side of the movement who live on less than $40,000 a year.” Laila Maidan & Kathleen Elkins, FIRE Movement: Early retirees discuss limitation, need to resume working, Business Insider, Sept. 13, 2023 (Apple News link). • See financial independence and FIRE movement; c.f. Barista FIRE and Fat FIRE.

“A transfer of personal property by will.” NY § SCPA 103(9).

“New York was, for a considerable period of time, a ‘legal list’ state, with frequent amendments. In such states the basic principle of law governing the investment of trust funds is that unless the will provides otherwise a trustee is limited to investing trust funds in certain classes of investments specified by statute and commonly referred to as ‘legal investments’ or ‘legals.’” Jule E. Stocker et al., Stocker and Rikoon on Drawing Wills and Trusts § 6:9.3, at 6-45 (Practising Law Inst. 2011).

An estate’s debts, taxes, charges, and claims.

“[T]he statutory interest rate that is applied to money judgments, beginning on the date of entry and ending on the date of satisfaction.” Jesse Dukeminier et. al., Wills, Trusts, and Estates 818 (7th ed. 2005). See NY CPLR 5004(a) (“ Interest shall be at the rate of nine per centum per annum, except where otherwise provided by statute . . .“).

“Any person designated to receive a transfer by will of personal property.” NY SCPA § 103(33). See also NY EPTL 13-4.1(d). C.f. devisee.

NY 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.” • NY SCPA § 103(20)(defining an executor) and NY SCPA § 103(2) (defining a fiduciary) mention “letters.” • See executor, fiduciary.

A type of estate where a person (the grantee) has the right to use and enjoy a property for the duration of their life. The estate is measured by the life of the grantee.

A life estate that is measured by the life of someone other than the grantee. C.f. life estate.

A type of insurance designed to provide financial security to loved ones in the event of the policyholder’s death. It typically involves paying regular premiums in exchange for a lump sum payment to beneficiaries upon the policyholder’s passing. The amount of coverage and premiums paid can vary based on factors such as age, health, and lifestyle. Life insurance is often purchased to ensure that loved ones are taken care of after the policyholder’s death and can be used to cover expenses such as funeral costs, outstanding debts, and living expenses.

“A life insurance trust is a legal entity you set up that takes ownership of your life insurance policy. Since the trust owns your life insurance policy, your estate doesn’t include the death benefit when you pass away, which helps your heirs avoid estate taxes.” Taylor DeJesus, What Is a Life Insurance Trust?, Money, Sept. 2023 (Apple news link).

A financial transaction that allows a policy owner to sell their life insurance policy to a third party for a lump sum payment. The buyer of the policy then becomes the new owner and beneficiary of the policy, responsible for paying the premiums and receiving the death benefit when the insured passes away. It can be a helpful option for individuals who no longer need or can afford their life insurance policy, or who would rather receive a lump sum payment now instead of waiting for the death benefit to be paid out.

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

Parents, grandparents, and great-grandparents.

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

An asset that can be readily converted into cash. Examples: A checking or saivngs account.

The amount of money that is being borrowed in a loan.

The amount being borrowed in a loan divided by the appraised value for the property. See David McMillin, What is a loan-to-value ratio?, Bankrate, June 27, 2023 (Apple News link) (“From a lender’s perspective, a lower LTV ratio is better than a higher one because it indicates that a loan applicant can make a larger down payment and won’t have to borrow as much money.”).

The problem of outliving retirement savings. Because people don’t know how long they’re going to live, there is uncertainty in building a nest egg that will last their life-span. • “People tend to underestimate their lifespan when planning for the future, advisers said. A 65-year-old woman today who is a nonsmoker and in excellent health has a 54% chance of living to 90, a 31% chance of living to 95 and a 13% of living to 100, according to the Actuaries Longevity Illustrator.” Ashlea Ebeling, A Retirement Tax Break That Ends the Fear of Outliving Your 401(k), WSJ, July 23, 2023 (Apple News link).

Insurance that covers the costs of long-term care, such as the cost of a home health aide to assist with some of the activities of daily living. • “Unlike health insurance, which typically has policy limits that renew each year, long-term care insurance policies instead provide coverage for a set number of years once qualifying events occur. So, choosing fewer years of coverage can lower long-term care insurance’s price.” Jake Safane, Buying long-term care insurance in your 70s? Do this to keep costs down, experts say, CBS News, June 19, 2024 (Apple News link).

Refers to the comprehensive array of paid and unpaid medical and personal care services designed to help individuals—due to aging, chronic illness, or disability—perform activities of daily living (such as eating, bathing, and dressing) and instrumental activities of daily living (such as preparing meals, managing medications, and housekeeping). These services may be delivered in institutional settings like nursing facilities, or in home and community-based environments, including home care aides, adult day programs, transportation, and supported employment. LTSS can be needed and used over periods ranging from several weeks to many years, depending on a person’s health care coverage and ongoing level of need.

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

In feudal England, the owner of a manor. • “Not only did the lord supervise the agricultural economy of the manor, but he also, through the manorial courts over which he presided in person or through his bailiff, adjudicated controversies among his tenants and regulated much of their daily lives.” Cornelius J. Moynihan & Sheldon F. Kurtz, Introduction to the Law of Real Property 13 (7th ed. 2020). • The lord had free tenants who held land in socage or by knight service. The lord retained the remaining lands (demesne lands), which the villeins worked. • A lord presided over two courts: the Court Baron (for free tenants) and the Court Customary (for villein tenants).

A landmark U.S. Supreme Court decision that held that taxpayers–in this case, spouses–cannot avoid income tax by assigning their income to others. Fruits must be attributed to the tree on which they grew, not “a different tree from that on which they grew.”