New Jersey § 3b:19b-9

§ 3b:19b-9.

a. As used in this section, “undistributed income” means net income received before

the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or

net income that has been added or is required to be added to principal under the terms

of the trust. b. When a mandatory income interest ends, the trustee shall pay to a mandatory income

beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary

whose death causes the interest to end, the beneficiary's share of the undistributed

income that is not disposed of under the terms of the trust, unless the beneficiary

has an unqualified power to revoke more than five percent of the trust immediately

before the income interest ends. In the latter case, the undistributed income from the portion of the trust that

may be revoked shall be added to principal. c. When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value

of the trust's assets ends, the trustee shall prorate the final payment if and to

the extent required by applicable law to accomplish a purpose of the trust or its

settlor relating to income, gift, estate or other tax requirements.