Thanks for your suggestion. Unfortunately the terms of the will trust do not allow me to purchase such a policy as it would reduce the capital in the trust. Also she has next to no money of her own that I could use. All I can give her is interest from investment of the capital.

I don't know if the trust allows this, but why can't you take out an "immediate needs annuity" policy instead, by swapping a lump of Capital in the trust and purchasing a policy that guarantees to pay out for her longevity.

At the ripe old age of 100 the cost of the policy would surely reflect her shortened life expectancy....after all you would be acting in her better interests by safeguarding and securing her current residence. The policy would guarantee to pay the necessary nursing home fees until the end of her life. Link for information purposes below.

http://www.sharingpensions.co.uk/annuity_immediate_needs.htm

I am a trustee for a "right of possession" trust the income from which goes towards keeping an elderly widow (100yrs old)with no close relatives in a nursing home. The trust dictates that I cannot touch the capital other than to invest it "to the best of my ability" and pay all interest to her. Because of her age I can only invest short term and require monthly interest payments. Financial Advisers and other "experts" can only suggest bank or bs savings. I have had some success with fixed term bonds in the trust's name in the past but finding financial institutions that will deal with trusts on anything but long term investments is virtually impossible. Annual tax returns are presented to HMRC both for the trust and the recipient and tax on interest is paid at source and I have all the necessary legal paperwork so it is really very straight forward but still they don't want to know! I need to reinvest some of the money shortly but current low savings rates and lack of choice means that unless I can find more competitve interest rates I am going to have insufficient income to meet the costs of the home. I cannot get assistance from social services and NHS and even if I could move her (which would kill her) I am struggling to find a better deal. Can anyone make any suggestions?