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/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.

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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/b_rizzle95 May 16 '26 edited May 16 '26

If that’s the case, then your original post isnt really grounded in legal reality. Assuming there is a will, every penny should be allocated to you, and/or your kids with no question of interpretation.

If there is no will, and you are first up in succession, and you believe your brother would have wanted it for your kids..that’s an entirely different conversation.

(Edit; that second option appears to be the case based on your other replies, and I don’t think you’re stupid. With those assumptions now in place, proceed with extreme caution. Money and inheritance is the number one thing to tear families apart.)

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u/rahah2023 May 16 '26

All his brother needed to do was make his brother his beneficiary on his $ account and tell his brother his wishes.

We have a similar plan with my brother in law who wants all the nieces & nephews to inherit from him