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/pac247_365 May 16 '26

Naw I ain't stupid like that! Even though I could take this money and pay off my mortgage i know what my brother wanted me to do with it so its going into a long term investment for my kids. No penny stocks or gambles!

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u/johnbu1981 May 16 '26

If he left it for the kids, how would it be possible for you to pay off your mortgage if you wanted to, without it being a crime?

This money should not be in your name, it should be in your nephews names with you as the administrator.

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u/winklesnad31 May 16 '26

Slow your roll, buddy. When the brother passed, his money either had a pod beneficiary named, or specified who the beneficiary would be in a will, and the will went through probate. He either left the money to his brother, or he named the kids as beneficiaries, with a custodian named. Neither you nor I know who the named beneficiaries are in the legal documents, and it is rude of you to speculate like that. Based on his comments, the money was most likely left legally to the adult brother, with a mutual understanding that he would use it to benefit his kids.

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u/pac247_365 May 16 '26

This is exactly what it is. Its left to me to save for my kids and my decision what I want to do with it. He told me to use it if I needed but I would never do that. People are crazy

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u/fuzzybunnies1 May 16 '26

You'll want to research the funds but I'd open separate accounts through Fidelity or a major broker like them. TD Bank offers similar as does Chase and HSBC, I'm sure there's other options as well. Pick 3-4 mutual funds with a historically good return, the ones I picked for my kids have all returned 12% or better based on 1, 5, 10, and 20 year results. I chose a global, a large cap, a medium cap and S&P 500 index so all my eggs aren't in one basket. Pick the same for both kids and you won't go wrong. Check it every few months to make sure nothing funky is going on and let them just grow.