New Jersey § 3b:19b-17

§ 3b:19b-17.

a. As used in this section, “ payment ” means a payment that a trustee may receive over a fixed period of time or during

the life of one or more individuals because of services rendered or property transferred

to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets

or from a separate fund created by the payer or by another, including a private or

commercial annuity, an individual retirement account and a pension, profit- sharing,

stock-bonus, or stock-ownership plan. b. To the extent that a trustee can readily ascertain the part of a payment from a

separate fund held for the benefit of the trust that represents the then undistributed

net income of the fund realized since the trust acquired its interest in the fund,

a trustee shall allocate that part to income. The trustee shall allocate to principal the balance of the payment. c. If no part of a payment is allocated to income under subsection b. of this section,

and all or part of the payment is required to be made, a trustee shall allocate to

income 10 percent of the part that is required to be made during the accounting period

and the balance to principal. If no part of a payment is required to be made or the payment received is the entire

amount to which the trustee is entitled, the trustee shall allocate the entire payment

to principal. For purposes of this subsection, a payment is not “required to be made” to the extent

that it is made because the trustee exercises a right of withdrawal. d. If, to obtain an estate tax or gift tax marital deduction for a trust, the trustee

must allocate more of a payment to income than provided for by this section, the trustee

shall allocate to income the additional amount necessary to obtain the marital deduction. e. This section does not apply to payments to which section 18 of this act applies.