All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad, sallallaahu 'alayhi wa sallam, is His slave and Messenger.
First of all, we ask Allah, The Almighty, to forgive your parents and brother, and we implore Him to admit them all to the highest levels of Paradise; verily, He is All-Hearing and All-Responsive.
When a Muslim wants to supplicate Allah, The Exalted, for his parents – or other than them – it is better to recite the reported supplications that are mentioned in the Quran and the Sunnah such as the supplication that you mentioned. Another example is the supplication for the parents mentioned in the verse (which means): {"My Lord, have mercy upon them as they brought me up [when I was] small."} [Quran 17:24]
Moreover, the best gift you can offer to your late brother is to supplicate Allah, The Exalted, for him [for forgiveness], and to offer charity and perform Hajj and ‘Umrah on his behalf.
The Fatwa of Shaykh Ibn Baaz reads: “A deceased person is in need of supplication and charity (offered on his behalf), and the best thing a living person can do for the deceased person is to supplicate Allah, The Exalted, for him, implore Him to confer His mercy upon him, forgive and pardon him, and elevate his status in Paradise, and other similar good supplications. Charity benefits the deceased as well, be it in the form of money, food, clothes, or any type of property. All these acts benefit the deceased, as well as performing Hajj and ‘Umrah on his behalf. All of this benefits the deceased.” [End of Quote]
For more benefit on charity on behalf of the dead, please refer to Fataawa 89131, 131398, and 117201.
Allah knows best.