Yes, butterflies and all other insects have both a brain and a heart. The center of a butterfly's nervous system is the subesophageal ganglion and is located in the insect's thorax, not its head. The butterfly has a long chambered heart that runs the length of its body on the upper side. It pumps hemolymph (it lacks the red color of blood) from the rear of the insect forward to bathe its internal organs. It has other functions similar to our blood.
"butterfly: internal anatomy of male butterfly." Online Art. Encyclopædia Britannica Online. 20 Nov. 2007