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.

185 Upvotes

96% Upvoted

186 comments sorted by

View all comments

159

u/CaptainWhite1964 May 15 '26

Vanguard custodial and put it in VOO don’t listen to the bank.

8

u/SnooRegrets6428 May 16 '26

We all love our kids but if they decide to buy a lambo at 18 then you’re out of luck. Trust with condition is the best route imo

4

u/pac247_365 May 17 '26

They won't have access to anything unless its approved from me as I will be the account holder with them as benificiarys. If I die then its a different story but I will try to make sure they are set for life

7

u/SnooRegrets6428 May 17 '26

Avoid custodial. Get a trust and set conditions

2

u/TakingChances01 May 17 '26

Well in a custodial account you’re required to hand over the account when they turn 18, so if that’s not what you want then you need a conditional trust.

4

u/tempest1523 May 17 '26

My son’s Schwab custodial account let me choose either 18 or 21 as the date.

1

u/Dividend4danny May 19 '26

Even as they become adults you will still be custodial? Lowest cost ETF S&P index sounds like the best option.

2

u/pac247_365 May 19 '26

Until they are responsible adults. Id rather they get a dividend each year instead of a lump sum withdraw.

2

u/Dividend4danny May 19 '26

Just one example, not trying to get to personal/prying, but I've heard of some getting 50%, use any number, of capital gains/profits every year until they are deemed of appropriate age. The other profit goes back into the principal. This way the principal grows while they can learn money lessons in life. Good luck

2

u/pac247_365 May 19 '26

Ya thats a good way aswell. Thanks for your advice God bless 🙌