Hi Frank, Congratulations on using the Montgomery GI Bill benefits to obtain your education goals. So many eligible veterans fail to use them before they expire. Unfortunately, there is no provision in the Montgomery GI Bill for transferring benefits to a dependent.
You may be thinking of the Post 9/11 GI Bill, which has a provision for transferring benefits to dependents, but even that benefit program requires that service members have been on active duty 1 August 2009, when the provision was added, to be eligible to transfer benefits. Service members coming onto active duty since August 2009 are also eligible. Part of the reason that veterans who have retired are not eligible, is that to be approved for the transfer of benefits, the service member must agree to extend their time on active duty for an additional 4 years.
There are a couple of places you might look for education benefits for your son. There are relief organizations which support each branch of service, and they often offer grants, scholarships, or no interest loans for dependent children of veterans. Try the Army Emergency Relief, the Navy/Marine Corps Relief Society, Coast Guard Mutual Assistance, or the Air Force Aid Society, depending on where you served. These sites also have additional links to possible education assistance offered by various organizations. Don’t forget about ROTC scholarships that may also be available to your son.