New Jersey § 3a:15-3

§ 3a:15-3.

INCREASED VALUE TO BE INCOME a. Increments in value measured by increases in redemption values of United States

savings bonds and United States treasury savings certificates issued upon a discount

basis and not bearing interest pursuant to the Act of Congress, approved September

24, 1917, as amended ( 31 U.S.C.A. 757c ), now or hereafter held by a fiduciary acting under a will, or trust instrument,

under which income of the estate, trust or other fund in which such bonds or certificates

are held is payable to an income beneficiary, shall be income whether or not such

increments are actually realized by maturity or redemption of such bonds. PAYMENTS TO INCOME BENEFICIARY ON ACCOUNT OF INCREASED VALUE b. Such fiduciary may pay to the income beneficiary out of any principal funds in

the fiduciary's hands or may transfer from the principal account to the income accounts

the amounts of such increments or such amounts of such increments as the income beneficiary

may be entitled to and in case such payment or transfer is so made the increments

in value of such bonds or certificates, or such amounts of such increments as the

income beneficiary may be entitled to, shall be added to and thereafter held as a

part of the principal. APPORTIONMENT OF INCREASED VALUE ON COMMENCEMENT OR TERMINATION OF RIGHT c. Upon commencement of or upon termination of the right of the income beneficiary

to receive income, that part of the increment in value of such bonds or certificates

which accrued after the commencement of or up to the time of termination of right

to receive income, respectively, shall be apportioned to income.