Informal Trust Questions
Long story short, im looking to start an account each for my two nephews. My understanding is that they are not considered blood relatives so I'd have to structure it as an informal trust, which seems fine for what I have in mind anyways, which is to help start them off on the right path financially as they enter adulthood.
Im just new to investing for myself as well so im a little unsure how I can set this up properly. My main concern is that as these accounts grow it will become a tax burden for me. Every etf im currently invested in within my own accounts has a listed dividend of 1.5-2.5 percent. This seems to be the case across the board.
I'd love to hear advice from others who run accounts like this. Is my idea of running something like this and not having a significant tax burden possible?
Id be in posession of these accounts for roughly 15 years when they come of age so lots of time to grow and start compounding, id just like to avoid putting my own financial well being under stress as they do.