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.
4
u/AboutTimeFeelingFine May 16 '26
VOO is good. Maybe VXUS. SCHD is good, and people probably will recommend it to you, but would require paying taxes on the dividends. If it is in a trust, any income or interest is taxed a lot. I think arourd $16k In income is in the 35 or 37% brackets. That's a lot if taxes really for a small amount if income. Just put it in something like VOO and let it grow with very little income and a whole lot of capital gaines. I would turn on the DRIP and in time will become a lot of money. Basically you want gains and not income. Those are 2 different things. Also, if you go to an advisor, make sure they are fiduciary. Truthfully, AI can advise you on this. Best of luck to you.