Looting Dead Comrades

[Zappo]

It depends on the paladin. If I were the player and the character was an average paladin played by me, I'd bury the body and keep the items. Then, if the dead character has a family, I'll try to find time ASAP to get to the family, return any family heirlooms, and offer some money if they need it. I'd return the other items if they asked for them, but I'd think that letting me use them would have been better judgement.

When I DM, all items purchased with starting money are to disappear in some way upon death. This is to prevent magic item inflation as characters get killed and new PCs enter, with full new equipment. Generally, the stuff gets buried with the body, returned to the family, was destroyed by the last monster attack, or is explained away in some other fashion.

 

[genshou]

Instead of debating what would be right for a Paladin to do, I'll tell you how to avoid this problem right from the outset. Require all parties to write a formal contract before they are licensed to freelance adventure in your campaign world. The document has certain requirements to how it is written, one of which is clearly defined rules for distribution of wealth from adventuring, and another of which is what to do with the equipment of fallen members.

These contracts have saved my games from experiencing trouble too many times to count.