N.J. Admin. Code § 17:6-8.3
Notwithstanding any beneficiary designation or any law to the contrary, a person will not be a beneficiary unless he or she is living or it exists when the distribution otherwise would become payable. Further, a person that would receive a distribution as a trustee or other fiduciary will not be a beneficiary unless the person that the trustee or fiduciary serves is living or exists when the distribution would become payable. Any right of a beneficiary is strictly personal to that beneficiary and lapses on his or her death or its non-existence. Any undistributed benefit that would have been distributable to a person had he or she lived or it existed is not distributable to that person's legatees or heirs. On a beneficiary's death, any undistributed benefit attributable to that beneficiary becomes distributable to the remaining primary beneficiaries or beneficiary if any, or if none, to the remaining contingent beneficiaries or beneficiary, in each case to be distributable in equal shares to all living beneficiaries of the applicable primary or contingent beneficiary class.
N.J. Admin. Code § 17:6-8.3