Recommend an income fund or bond please

[deanobeano]

My wife is an executor for her late father.

The will requests that a trust is setup (with all of the assets from his estate).

This trust should have investments that produce an income. The income is to be given to his surviving partner, with the capital remaining and to be left to his children, after his partners death.

I use VHYL as part of my investments, but would ask for recommendations for other income producing finds or bonds to best fulfil this bequest?

There will be approx 300k to invest, his widow is 80 and we are looking to maximise her income, but protect the capital for his children.

His children will inherit the estate after the death of his partner.

I have looked briefly at income producing funds (there are many!), but would appreciate all of your thoughts.

I was thinking of

1- A small amount in bank savings, to act as a buffer for monthly payments to his partner
2 - the rest invested in low cost, income funds, or perhaps income bonds, if the rate is high enough?

I assume (will check / research further) that the trust will be registered with HMRC and submit annual returns to pay any taxes due. The trust will then transfer monies monthly to his partner net of tax.

Any suggestions for suitable income funds?

[deanobeano]

Thanks for all the information.

I too am concerned with the higher yield end of the market. So will probably opt for a middle ground income fund.

Post probate, my next step is to find a trustee bank account, again, not an easy task (I'm lead to believe).

[deanobeano]

Thanks for that info on bank accounts.