Legal Question in Wills and Trusts in New Jersey

Re: Will and Conservatorship

I'm sorry for your and your son's loss.

How the money in trust for your son is handled really depends on how specific the will is. I assume that your son is a minor, therefore the trust. There may be a different trustee or conservator [who administers the trust funds] from the person who has custody and care of the child, as you do.

If checks are payable to you as beneficiary of any insurance or pension plan, for example, that is "contractual", and not part of the estate that passes under the will. You do not have to turn those checks over to the estate.

Also, the life insurance proceeds, of which your son is a beneficiary, are contractual and therefore not part of the estate. Because your son is a minor, the life insurance proceeds should also go into trust for your son. It may be possible that those funds be in a trust separate from the trust under the will, so that they will be managed by you. Such a trust may require court approval of any withdrawal by you, to conserve the funds for your son's benefit.

If the housing allowance was specified for you and your child, that's one thing, if it was an allowance solely to pay for housing costs of your son's father, that will probably be discontinued as of his death, so that even though the checks haven't yet stopped, the proceeds of those checks will have to be returned to their source.

As the legal guardian of your child, you will have the right to ask for money out of either trust, to pay for your child's needs and expenses.

You should consult with a local estates lawyer to assist you. You may also be eligible for service from attorneys who have volunteered to assist military families. Check with your local county bar association.

My NJ office is in Collingswood [Camden County].

Re: Will and Conservatorship

I am very sorry for your loss.

To the thoughful answer given to you by Ms. Jacobson, I add the following:

Be very careful about what you do with any housing allowance check or similar funds that you receive. Salary and allowance entitlements terminate immediately. One of the reasons for the death gratuity is to permit military families an orderly transition because the salary and benefits stop and families are no longer entitled to military housing. If you are overpaid, even by mistake, you will have to pay the money back to the government even if you have cashed the check and spent the money. No one has the authority to forgive an overpayment, hardship or not.

If you have any trouble with the "system", you can contact the base Casualty Assistance Calls Office or the Chaplain. Both of those contacts can cut red tape for you and get you answers that you need.

See also: http://info.corbettlaw.net/lawguru.htm