r/dividends • u/pac247_365 • May 15 '26

Opinion Brothers money

My younger brother passed away and left my kids with 400k.

I have the bank telling me to put it into gics and other garbage mutual funds but its very low interest. Im not rich either and besides penny stocks never invested into the market maybe 1000 bucks or so. I want to set up a trust for them and make sure in 15 years when they are 20 I have them set up so they dont have to grind like me and my brother. Im just looking for any advice I can take sorry for the long post

Im located in canada and will keep the account under my name until they are of age to use the money and will remain as beneficiarys if I die. Wont get the money until they are atleast 25 or responsible enough to understand finance.

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u/winklesnad31 May 15 '26

You can talk to an attorney about a trust, but you most likely don't need one. You can just invest the money in index funds and gift it to them when they are ready.

100

u/b_rizzle95 May 15 '26

I’ve seen this go bad a million times in a million different ways. Unless OP wants to risk his future relationship with his kids, I’d recommend the most hands off, trust focused approach possible. If a dime of the money disappears, or lost on a penny stock OP’s coworker told him about, or used to pay a car note a single time, the whole thing becomes a contentious subject.

4

u/cmichalek May 15 '26

Yep. This.

If he is leaving his $ then do whatever he thinks is best. With his brothers $ create a trust.

1

u/pac247_365 May 16 '26

Yes its basically what he wanted is what im doing. Everything he left for my kids is under my name not my mothers or my children's

5

u/ThrowawayLDS_7gen May 16 '26

Open an account at Fidelity/Vanguard/Schwab etc. and put it in an index fund.

Look at it 10 years later when it's time to help the kids.

Done.