R

The phenomenon where different people have contradictory interpretations of the same event, highlighting the subjective nature of perception and memory.

The rationale of a decision; the legal basis of a decision.

See treasury stock.

See real property.

Land and any permanent structures on it. • Real property is commonly known as “real estate.”

“[A]n identifiable event before accrued income is reportable by taxpayers.” Sloan G. Speck, The Realization Rule as a Legal Standard, 16 Colum. J. Tax. L. __ (forthcoming 2024) (SSRN link).

A legal document that contains a summary of the events of an estate administration from the date of death to the closing of the account and that is reviewed and signed by the interested parties at the time the estate was closed, who acknowledge receipt of all property to which each party is entitled, and who agree “to release the executor from all liability with respect to the administration of the estate, to indemnify the executor against any expenses or claims which may at any time be asserted against the executor, and to refund to the executor any amount of such party’s total distribution which is either needed to so indemnify the executor or later discovered to be an overpayment to such party.” Susan B. Reuben, Informal Settlement of Estates, NYSBA course book, Fall 2020. • This document is sometimes called a “Receipt, Release, Refunding and Indemnification Agreement” or “Agreement Settling Account.”

See Receipt and Release Agreement.

“[A] recession is a general decline in a country’s production of goods and services, measured usually as two consecutive quarters of shrinking growth as determined by the National Bureau of Economic Research.” Caitlin Ostroff, The Dow Is Officially in a Bear Market. Here’s What to Know., WSJ, Sept. 26, 2022 (Apple News link).

The record date is the date on which a company reviews its books to determine which shareholders are eligible to receive the upcoming dividend payment. In order to receive the dividend, shareholders must be on the company’s books as of the record date. For example, if a company declares a dividend with a record date of May 1 and you own shares in the company on or before May 1, you will be eligible to receive the dividend payment.

A tax that imposes higher tax rates as income decreases. C.f. flat tax, progressive tax.

“[T]the risk of having to reinvest a maturing bond at a lower interest rate in the future. Essentially, these currently high yield levels [on short-term Treasuries and money market accounts] are fleeting and likely won’t be as high down the line when your bond matures and you want to reinvest your money.” Lisa Scherzer, Bonds Are a Great Buy Now. How to Protect Yourself., Barron’s, Aug. 19, 2023 (Apple News link).

The executor where there are two or more executors, and one or more renounce.

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. • The 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 16 (7th ed. 2020). • “Payment of the relief by the heir of a subtenant entitled the heir to immediate possession, but on the death of a tenant-in-chief, the king, by royal prerogative, was entitled to first seisin (primer seisin) of all the deceased tenant’s lands, not only those held directly of the king, but also those held of mesne lords. Only after an official inquest to determine heirship, the doing of homage, and the payment of the relief was the heir admitted to seisin or possession.” Id. Relief was an incident of tenure.

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.

A notary’s witness of documents via live audiovisual technology. It is “remote-ink” because wet ink notarization of paper documents is required. So, the witnessing is not completely electronic. C.f. remote online notarization.

A notary’s witness of documents via live audiovisual technology. It is “online” because the witnessing is completely electronic; wet ink notarization of paper documents is not needed. C.f. remote-ink notarization.

“[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.

See disclaim.

The first date the original retirement account owner was required to begin taking required minimum distributions.

For certain retirement accounts, the amount an individual must take. • RMDs “are the bare minimum one is required to take. If someone is in an advantageous tax situation, taking more than what is required can minimize taxes on the distributions later.” Jonathan I. Shenkman, Retirees Have to Pay Taxes, Too. 6 Smart Ways to Reduce Them., Barron’s, Nov. 22, 2023 (Apple News link). • “RMDs are the government’s way of getting its share of retirement savings that has grown tax-deferred for decades.” Elizabeth O’Brien, 20% of Retirees Haven’t Taken Their RMD. What Happens if You Miss the Deadline., Barron’s, Dec. 14, 2023 (Apple News link).

Trust property.

“[R]es judicata precludes a party from asserting a claim that was litigated in a prior action (see, Parker v Blauvelt Volunteer Fire Co., 93 NY2d 343, 347).” People v. Evans, 94 N.Y.2d 499 (2000).

Respecting New York WebSurrogate: A document that is listed on WebSurrogate but inaccessible because a link is not available. • Documents that have personal identifiers, like a Social Security number, would get restricted. For example, a death certificate, would get restricted. • See WebSurrogate December 2021 Upgrade Info, nycourts.gov; Hani Sarji, New York County Surrogate’s Court Records Will Be Available on WebSurrogate Starting 11/6/2023, Wills, Trusts, Estates, Nov. 3, 2023.

“[A]n employer-sponsored plan that provides business continuity through a death benefit and potential long-term cash accumulation and income distribution” that was founded by Ken Crabb. Ken Crabb, Webinar: The Restricted Property Trust–A Special Re-Broadcast, leimbergservices.com, July 20, 2023.

A trust that arises on the failure in whole or in part of an express trust.

“Retirement usually entails replacing your annual salary from a workplace with other sources to maintain your current lifestyle. Wile Social Security may cover part of your budget, . . . [t]he rest of your money will most likely need to come from your savings and investments.” Emily Lorsch, Here’s how much you need to save each month to earn $40,000, $50,000 and $60,000 per year in interest for retirement, CNBC, July 22, 2023 (Apple News link).

A fiduciary “responsible for managing the investments in a 401(k) or employer-sponsored retirement plan.” Alisa Wolfson, Fiduciary vs. financial adviser: What’s the difference?, MarketWatch, June 26, 2023.

“The core focus of retirement planning is on the accumulation of assets to live out one’s golden years. This includes regularly contributing to retirement accounts and investing those funds appropriately. Although this is unquestionably a crucial first step, an important second consideration that many investors neglect is ways to minimize expenses in retirement, which will allow one’s nest egg to last longer.” Jonathan I. Shenkman, Retirees Have to Pay Taxes, Too. 6 Smart Ways to Reduce Them., Barron’s, Nov. 22, 2023 (Apple News link).

Provides that the transfer of assets between a grantor and a grantor trust is a non-taxable event for federal income tax purposes.

Holds that a gift tax does not apply to a grantor’s payment of income tax attributable to trust income. • This holding effectively allows grantors to make additional, tax-free gifts to the trust beneficiaries.

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.

“Revolving debt is debt that is open-ended, meaning you can reuse it once you pay down your balance, as with a credit card. . . . [Y]ou get a maximum credit line and then you can spend up to that limit as many times as you need to. The available credit you have will fluctuate depending on how much credit you’ve used. With this type of debt, you must make at least the minimum payment, and the remaining balance will then transfer over to the next month with interest. “ Investopedia, Debt: The Good, the Bad and the Ugly, Aug. 2023 (Apple News link). C.f. installment debt.

The common-law right of the deceased’s next of kin to immediate possession and control of the decedent’s body for preservation and burial. This right protects the next of kin from unauthorized interference, such as improper handling, disposal, or failure to notify them about the body. A violation occurs if someone unlawfully deprives the next of kin of the body or interferes with their ability to arrange for burial or other proper disposition. The right is intended to provide solace and comfort through the ritual of burial.

“[R]isk management is just wealth management through another lens.” Joel Schoenmeyer, Early Takeaways from SVB (Post 2), LinkedIn, March 15, 2023.

“[T]he investor who bears the greater risk is compensated for it.” John H. Langbein, The Uniform Prudent Investor Act and the Future of Trust Investing, 81 Iowa L. Rev. 641, 647 (1996).

“[T]he obvious truth [is] that some securities are riskier than others. Investors demand to be paid to bear the greater risk. For example, a start-up computer software company in Silicon Valley entails a far larger risk of disappointing returns or total failure than does a seasoned blue chip such as Mobil Oil or General Electric. If you are a Silicon Valley entrepreneur who wants me to invest in your start-up firm, you must offer me an expected return (that is, a combination of dividends and capital appreciation on the securities) that is higher than Mobil or GE will pay me in order to induce me to invest in your riskier venture. This calculation is called the risk/return curve: The higher expected return on the investment compensates me for bearing the greater risk of the investment being disappointing.” John H. Langbein, The Uniform Prudent Investor Act and the Future of Trust Investing, 81 Iowa L. Rev. 641, 647 (1996).

Tools that financial advisors use to determine a client’s tolerance for risk and assign labels, such as, “highly conservative” or “moderately aggressive.” Some advisors use tools like Riskalyze, FinaMetrica, and DataPoints. Others are wary of such tools. See Morey Stettner, Risk-tolerance surveys often miss what financial advisers really need to know about you, MarketWatch, Feb. 2, 2023 (Apple News link).

“Robo-advisers use computer algorithms to create and manage an investment portfolio on a client’s goals for a minimal fee. . . . [R]obo-advisers can make economical sense for someone with fewer assets.” Alisa Wolfson, Fiduciary vs. financial adviser: What’s the difference?, MarketWatch, June 26, 2023.

For retirement: “A rollover happens when you pull money out of one plan and deposit it into another, which is different from a transfer that moves accounts between institutions.” Kate Dore, These are the 3 biggest retirement plan rollover mistakes, expert says. Here’s how to avoid penalties, CNBC, Sept. 29, 2023 (Apple News link).

“Essentially, a Roth conversion entails transferring funds from traditional retirement accounts, which are subject to taxation upon withdrawal, to Roth IRAs. This strategic maneuver is aimed at eliminating future tax-related risks, reducing the overall tax burden over time and increasing the value of one’s after-tax retirement savings.” Troy Sharpe, Roth IRA Conversions: Benefits and Considerations Beyond Taxes, Kiplinger, Sept. 29, 2023 (Apple News link).

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.

(1) “The Rule of 72 is an easy way to calculate how long it will take your investment to double in value. . . . You divide 72 by the annual rate of return you expect to earn on that investment. For example, if you expect an annual return of 8%, it would take approximately 9 years for your investment to double (72 divided by 8 equals 9).” Charles Lewis Sizemore, The Rule of 72 Is an Easy Way to Assess Your Investments. Are You using It?, Kiplinger, May 22, 2024 (Apple News link).

(2) “The Rule of 72 can also be used to assess the impact of inflation on your purchasing power. If you want to determine how long it will take for the purchasing power of your money to be cut in half due to inflation, you can use the same formula. Let’s say the inflation rate is 3%. You could divide 72 by 3 to get 24 years. Assuming a 3% rate of inflation, your purchasing power would be cut in half in 24 years.” Charles Lewis Sizemore, The Rule of 72 Is an Easy Way to Assess Your Investments. Are You using It?, Kiplinger, May 22, 2024 (Apple News link).

(*) “Remember though, the Rule of 72 is designed to be a rough estimate and its assumptions aren’t always realistic. It assumes a constant rate of return, and stock returns are anything but constant. The average return is far from indicative of the return you’re likely to get in any given year. It also doesn’t account for taxes, fees or other expenses that can chip away at your returns. And like all financial models, it’s only as good as its inputs: Garbage in, garbage out.” Charles Lewis Sizemore, The Rule of 72 Is an Easy Way to Assess Your Investments. Are You using It?, Kiplinger, May 22, 2024 (Apple News link).