Are Beneficiary Designations Protected in New Jersey?

Yes. New Jersey automatically revokes an ex-spouse as beneficiary upon divorce for the following asset types: life insurance, retirement accounts, pod accounts, tod accounts, annuities.N.J.S.A. 3B:3-14; 3B:3-33.1; 3B:3-35; 3B:5-4; 3B:5-6; 3B:7-1.1; 3B:30-1 et seq. (Uniform TOD Security Registration Act); 17:16I-1 et seq. (Multiple-Party Deposit Account Act); 25:2-1(b); 39:3-30.1bVerified Jul 13, 2026 However, ERISA-governed employer plans such as 401(k)s and pensions are subject to federal law and must be updated manually regardless of state rules.

Yes. New Jersey provides full statutory protection for inherited IRAs from creditors.N.J.S.A. 3B:3-14; 3B:3-33.1; 3B:3-35; 3B:5-4; 3B:5-6; 3B:7-1.1; 3B:30-1 et seq. (Uniform TOD Security Registration Act); 17:16I-1 et seq. (Multiple-Party Deposit Account Act); 25:2-1(b); 39:3-30.1bVerified Jul 13, 2026 After the Supreme Court's Clark v. Rameker (2014) decision ruled inherited IRAs are not protected under federal bankruptcy law, state-level protections became the primary shield.

Yes. The federal Employee Retirement Income Security Act (ERISA) preempts state law for employer-sponsored plans such as 401(k)s, pensions, and group life insurance. Even if New Jersey automatically revokes an ex-spouse upon divorce, ERISA-governed plans follow the designation on file with the plan administrator. The Supreme Court confirmed this in Egelhoff v. Egelhoff (2001) and Kennedy v. Plan Administrator (2009).

When no valid beneficiary designation exists, the asset typically passes to the account holder's estate and is distributed through probate under New Jersey's intestacy laws. This can result in delays, additional costs, and the assets going to someone other than the intended recipient. See who inherits with the New Jersey inheritance calculator.

Yes. New Jersey applies a per stirpes default for beneficiary designations.N.J.S.A. 3B:3-14; 3B:3-33.1; 3B:3-35; 3B:5-4; 3B:5-6; 3B:7-1.1; 3B:30-1 et seq. (Uniform TOD Security Registration Act); 17:16I-1 et seq. (Multiple-Party Deposit Account Act); 25:2-1(b); 39:3-30.1bVerified Jul 13, 2026 If a named beneficiary dies before the account holder, the deceased beneficiary's share passes to their descendants rather than to the remaining named beneficiaries.