New Jersey § 3b:19b-6

§ 3b:19b-6.

a. Each beneficiary described in subsection d. of section 5 of this act is entitled

to receive a portion of the net income equal to the beneficiary's fractional interest

in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom

this section applies, each beneficiary, including one who does not receive part of

the distribution, is entitled, as of each distribution date, to the net income the

fiduciary has received after the date of death or terminating event or earlier distribution

date but has not distributed as of the current distribution date. b. In determining a beneficiary's share of net income, the following rules apply: (1) The beneficiary is entitled to receive a portion of the net income equal to the

beneficiary's fractional interest in the undistributed principal assets immediately

before the distribution date, including assets that later may be sold to meet principal

obligations. (2) The beneficiary's fractional interest in the undistributed principal assets shall

be calculated without regard to property specifically given to a beneficiary and property

required to pay pecuniary amounts not in trust. (3) The beneficiary's fractional interest in the undistributed principal assets shall

be calculated on the basis of the aggregate value of those assets as of the distribution

date without reducing the value by any unpaid principal obligation. (4) The distribution date for purposes of this section may be the date as of which

the fiduciary calculates the value of the assets if that date is reasonably near the

date on which assets are actually distributed. c. If a fiduciary does not distribute all of the collected but undistributed net income

to each person as of a distribution date, the fiduciary shall maintain appropriate

records showing the interest of each beneficiary in that net income. d. A fiduciary may apply the rules in this section, to the extent that the fiduciary

considers it appropriate, to net gain or loss realized after the date of death or

terminating event or earlier distribution date from the disposition of a principal

asset if this section applies to the income from the asset.