B-155544, APR. 16, 1965
Highlights
SMITH: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 11. IN YOUR PRESENT LETTER YOU REQUEST INFORMATION AS TO WHETHER THE GRATUITY DUE THE MINOR CHILDREN OF THE DECEDENT MAY BE PAID TO YOU AS TRUSTEE RATHER THAN AS LEGAL GUARDIAN AND WHETHER THERE IS ANY RULING ON PUTTING THE MONEY IN GOVERNMENT SERIES "E" BONDS. AS YOU HAVE BEEN PREVIOUSLY ADVISED PARAGRAPH 044306. PROVIDES THAT PAYMENT OF THE GRATUITY MAY NOT BE MADE DIRECTLY TO A MINOR CHILD BUT MUST BE MADE TO A LEGAL GUARDIAN IN CASES WHERE A MINOR CHILD IS ENTITLED TO A DEATH GRATUITY OF MORE THAN $1. IT IS SUGGESTED THAT THE INTEREST WHICH WOULD ACCRUE FROM SUCH INVESTMENT WOULD SERVE TO COMPENSATE FOR SOME OF THE COSTS NECESSARILY INCURRED IN OBTAINING LEGAL GUARDIANSHIP.
B-155544, APR. 16, 1965
TO MRS. MARJORIE A. SMITH:
REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 11, 1965, FURTHER CONCERNING THE DEATH GRATUITY DUE IN THE CASE OF HAROLD EDWARD CHISHOLM, CHIEF BOATSWAIN'S MATE (ACTING), U.S. NAVY, ON JULY 11, 1964.
IN YOUR PRESENT LETTER YOU REQUEST INFORMATION AS TO WHETHER THE GRATUITY DUE THE MINOR CHILDREN OF THE DECEDENT MAY BE PAID TO YOU AS TRUSTEE RATHER THAN AS LEGAL GUARDIAN AND WHETHER THERE IS ANY RULING ON PUTTING THE MONEY IN GOVERNMENT SERIES "E" BONDS.
AS YOU HAVE BEEN PREVIOUSLY ADVISED PARAGRAPH 044306, NAVY COMPTROLLER MANUAL, SETTING FORTH THE PROCEDURES GOVERNING THE PAYMENT OF DEATH GRATUITIES UNDER AUTHORITY OF 10 U.S.C. 1475-80 TO ELIGIBLE SURVIVORS OF MEMBERS OF THE NAVY AND MARINE CORPS, PROVIDES THAT PAYMENT OF THE GRATUITY MAY NOT BE MADE DIRECTLY TO A MINOR CHILD BUT MUST BE MADE TO A LEGAL GUARDIAN IN CASES WHERE A MINOR CHILD IS ENTITLED TO A DEATH GRATUITY OF MORE THAN $1,000. CONSEQUENTLY PAYMENT OF THE GRATUITY MAY NOT BE MADE TO YOU AS TRUSTEE.
WE KNOW OF NO AUTHORITY FOR THE PAYMENT OF THE DEATH GRATUITY IN THE FORM OF GOVERNMENT BONDS OR FOR THE CONVERSION OF MONIES DUE AS A GRATUITY, BUT HELD BY THE GOVERNMENT PENDING RECEIPT OF A PROPER CLAIM, TO BONDS TO BE HELD FOR FUTURE DELIVERY TO THE CLAIMANT. HOWEVER, THERE GENERALLY WOULD BE NOTHING TO PREVENT A LEGAL GUARDIAN FROM INVESTING THE PROCEEDS OF A DEATH GRATUITY CLAIM IN SUCH BONDS OR ANY OTHER KIND OF LEGAL INVESTMENT, AND IT IS SUGGESTED THAT THE INTEREST WHICH WOULD ACCRUE FROM SUCH INVESTMENT WOULD SERVE TO COMPENSATE FOR SOME OF THE COSTS NECESSARILY INCURRED IN OBTAINING LEGAL GUARDIANSHIP.