New Jersey Statutes Appendix - Former Title 3A Administration of Estates Decedents and Others 3A § 14A-4

(a) all distributions to an estate by a corporation in the shares of the distributing corporation, whether in the form of a stock split or stock dividend or cash in lieu of fractional shares, shall be principal, unless any such distribution is 4% or less of the number of shares of such stock held in the estate on the record date of such distribution (or, if there is no record date, the date of the declaration thereof by the corporation), in which case such distribution shall be income;

(b) all rights to subscribe to securities of a corporation held in an estate accruing by reason of the ownership of securities of the corporation creating such rights;

(c) the proceeds of the sale of all rights described in paragraph (b) of this section;

(d) all distributions of corporate assets to stockholders on the liquidation of a corporation whose stock is held in an estate;

(e) all distributions, whenever made, of corporate assets to stockholders of a corporation whose stock is held in an estate, which are designated by such corporation as a return or distribution of capital or a division of corporate property.