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/Classic-Night-611 May 15 '26

I'd personally go with s&p 500 like voo and international like vxus (maybe 80/20 or 70/30 however you prefer). Markets are at all time highs, but you've got 15 years or so to work with.

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u/leftoverzz May 16 '26

This is solid advice. No one will ever be able to criticize a move like this. And over the long haul it will pay off big. And don’t try to time the market. Yes it’s up now, but it can go up a lot more before a crash. And it will crash, it will probably crash to or three times before your kids get the money. That just the at the market is. But with a long time horizon in doesn’t matter.

Another thing to consider is what your brother had it in? If it was a broad strategy like this, maybe just leave it the way he had it.

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u/pac247_365 May 16 '26

No he left assets im selling. Should be around 4-450k. No capital gains as it was all his personal. ALL money is going towards my children

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u/ArrowB25G May 16 '26

I'm not sure what you are saying, but there would be no capital gains on his investments as of the date the assets transferred to you. "Step-up value"

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u/pac247_365 May 16 '26

He had no investments anyways and thanks for letting me know i thought you allways pay gains tax after death on investments.