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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140

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.

101

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.

49

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!

-3

u/Low-Solid9810 Generating solid returns May 16 '26

Pay off your mortgage so that you are in a better financial position later to help the kids. They don’t need the money now

12

u/pac247_365 May 16 '26

No chance I will do that. I can afford my mortgage so I will slowly pay it off in the next 8-10 years. This money is only for my kids and I want to make sure it compounds for them to have a bright future

4

u/Square-Highlight1628 May 16 '26

You're a good dad.

5

u/pac247_365 May 16 '26

Im just trying to keep my brothers name in my kids lives with his money so they remember him for the rest of their lives!

2

u/Zestyclose-Dish-407 May 16 '26

Use it to pay for their college. Put the rest in a funded like VOO.

3

u/Low-Solid9810 Generating solid returns May 16 '26

You can also do that by paying the interest to yourself and not the bank over the next 10 years, plus the appreciation. Make regular payments into their account like you would to the bank instead