Legal Question in Elder Law in New Jersey

This does not appear to be right; meaning, that's not how an IRA should be set-up. What you may mean is that the underlying funding instrument in the IRA (a savings account; CD; money-market account) may have such a designation. Still, it looks questionable. What may have happened is that the sales-person for the bank (they are not real bankers) may have attempted to fulfill your gandmother's desire for you and your brother to be the beneficiary of the underlying funding instrument of her IRA in the event she dies before she withdraws the funds. To test if your late grandmom's banker know anything about banking ask them to explain the principles of the "frequency of money" as it applies to income. Of course, what I have just written is not to be considered the last word on this matter. I could be wrong; therefore, ask the bank.