New Jersey Statutes Appendix - Former Title 3A Administration of Estates Decedents and Others 3A § 15-3

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.

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.

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.