An alternative to flat rental - trustee for my step mum

[deanobeano]

My (wife's) father passed away last year.

His will leaves is flat (that has been let out for the last 20+ years) to his three children with the provisio that whilst his wife is alive, the income from the flat rental (or any other form of return on his assets) is to provide for his wife.

We placed the flat in trust and my wife is the trustee. This arrangement has been going OK, however, she wonders if an alternative to being a landlord would be a better choice?

I'm starting to research this for her, but thought I would ask here for suggestions.

I'm thinking of selling the flat (c.£330k) and using the proceeds to purchase either:

- A suitable money market fund
- or a income fund

However, I am unsure what platforms are available for a trust and if the introduction needs to be made via an IFA or similar?

With the flat rental, the returns (after letting agents fees) are approx 4.5% before taxes.

I feel that we could potentially match or beat this, without the potential issues with voids, refurbs and governmental influence.

Your thoughts please.

[LeoSayer]

What income (ie. cashflow) needs does your mother in law have (or is likely to have) and over what timescale?

Without this, it's impossible to choose appropriate investments.

[deanobeano]

She has her own savings and pension income.

I was thinking of keeping 3-6 months of income for her as cash and have the rest producing quarterly dividends or an alternative regular income to the pot.

I'd be looking to achieve 15k PA from a circa 330k pot. And be looking to make monthly payments from the trust to her bank aco.