Financial advice for minors

[vjklander]

My 13 year-old grand-daughter has a sizable check from a life insurance payout. She, my DiL, and I are going to see lawyer, but I want to get a better understanding of how to protect her money. Not that I don't trust lawyer's, but I don't trust lawyers. I know what I would advise her if whe was 18, but I'm just not cognizant of the rules that apply to minors. I'm thinking, for now, she should put most of the money in 7 or 11 month CDs at 5% from Wells Fargo. She does want to get her own brokerage account as she has helped me with mine for several years. She does want to use some to help her mom, but most will be invested.
1. can/should she get a revocable living trust with her mom as co-trustee or such
2. can/should she get a checking account within the trust or outside the trust?
3. can/should she get a brokerage account within the trust or outside the trust?

[fffred]

@vjklander 

Kudos to you for wanting to help your granddaughter and your family.

There are tons of financial/legal forums and blogs out there, some of which may provide good advice. I'm not sure that the AARP forums get enough traffic to get you some good information (though all it takes is one knowledgeable person ...and that's not me, regarding the legal aspects for a minor). I will suggest the forum:  www.bogleheads.org.  Originally founded at Morningstar they moved on to their own site. Founding group were investors who were fans of John Bogle, founder of the Vanguard Group (of mutual funds). Bogle was a visionary in many ways in the investment field ...hence "bogleheads" as devotees.

There are some very smart and knowledgeable posters there and I'm sure a post there will get some traction and results, and likely some top quality answers.

I'll just add this:  Take some of the proceeds and buy a total market index fund (like VTSAX) and let it ride for 50 years in her case.

Good luck!