First, all due respect, if you're talking 2% returns and £50k/year for management, then you should recognize your own limitations: **your own knowledge of money has its limits**, and that is relevant because there are lots of strategies available that are beyond your experience.   Of course, that is a very hard thing to hear, because money habits are *deeply ingrained* psychologically. 

How endowments work
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The idea of having a lump-sum support your brother is very solid.  It's not far from an **endowment** - which is a funding strategy used by universities and other not-for-dividend entities.  An endowment is a pile of money that makes money.  The "made money" is reinvested into the endowment (as a hedge against bad years and inflation), and a *prudent* amount of 4-7%  is drawn off to fund projects.  The investment strategy closely scrutinized by experts, and must adhere to a reliable standard.

Endowments take advantage of the fact that the scary thing about stock investing is actually *volatility*, the tendency to go up and down abruptly in the short term.  In the long term, markets always go up at a very healthy pace.  And that is typical:  investments with the highest *average **growth*** also have the highest **volatility**.  An endowment manager doesn't care about volatility because she's playing a LONG game. Not only *can* she be in stocks, she *must* be *by law*, because that's where the growth is.  Allowing an endowment to rot away in a 2% bond would get her dragged in front of a magistrate. 

An endowment is investing for a "some back every year, *forever*" whilst a trust serves a person with a finite lifespan - so it's not *quite* the same. It's prudent to start backing out of the volatile stock market as the person gets old enough that the market wouldn't have time to recover from a downturn before the money is needed.  Or, the fund could be managed as a "forever fund", and simply assigned to their children. 

If you read *Pride and Prejudice*, and hear about how Mr. Darcy was a "man of 20,000 pounds a year", that's *more or less* how that worked. The "endowment" wasn't generally traded stocks like today, it was other holdings; but the point is that "endowment" is owned by the *family*, he inherited it, and he will pass it on to their progeny. 

Set up a trust - but it's an arms race
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I discussed the endowment so you can have a foundation of what to expect from a trust.  Since it serves a financially irresponsible person, the financial engine is similar, but the wrapper must be somewhat different.  

First and foremost, it must be protected against **squandering**. I hardly need to tell you not to give him access to the lump-sum.  However, beneficiaries want to spend. They tend to view themselves as the "victim" of a trust, *and they really want to bust the trust* and get to the underlying lump sum.   Discouraging the stupid from busting their trusts, is precisely where the "[Fable of the Goose that lays Golden Eggs][1]" came from.  

Your brother will likely be actively solicited by winklers (best word I can think of) who will pay a lump-sum to buy the rights to his future trust income.  He is then free to squander the lump-sum.  **This is exactly the fate of many [lottery winners][2]** who try to protect themselves by selecting a yearly annuity - the linked book was written by a former winkler.  Yikes.  The trustee is then obliged to make the check out to the winkler, and the brother gets nothing. It's like an **anti-endowment** that cancels out the endowment, except it's extremely inefficient, with the winkler collecting [as much as 85%][3] of the value *because they tricked the brother*.  (thanks CodesInChaos). 

For instance, one potential way is for the trustee to have the legal right to suspend or cancel payments at any time.  Now, since the payments *aren't* guaranteed, the winkler won't do business with your brother, because the winkler would know the trustee would stop payments rather than let the winkler have them. 

Here's my point. 

**This area of law is an *arms race* between lawyers working for trustees and lawyers working for winklers and angry beneficiaries trying to bust the trust.**  You need to find a lawyer who is very practiced in this particular area, and is "up to speed" on all the strategies used by both sides.  That way he can b so you can build the best defense into the trust.  This won't be an annual expense (much), but it will be a one-time expense.  


  [1]: https://en.wikipedia.org/wiki/The_Goose_That_Laid_the_Golden_Eggs
  [2]: https://www.amazon.com/Money-Nothing-Journey-through-Millions/dp/0061284181
  [3]: https://www.washingtonpost.com/local/social-issues/how-companies-make-millions-off-lead-poisoned-poor-blacks/2015/08/25/7460c1de-0d8c-11e5-9726-49d6fa26a8c6_story.html