1-Million $ Question - Investing Inheritance

[Aram V.]

Hello,
I'm new to the investing game and I'm an big fan of BP. I'm going to give as much information as possible, but also cut a long story very short. 

My father will be given his pension when he turns 70 1/2 in a couple of years. He will be receiving over 1.2 million dollars.

He does NOT need it as he is getting income from varies sources (401k, Veteran's , SS, etc)

He wants to give it to us, 4 children (ages 44/40/34/32), when he passes away, but in the mean time invest in such a way that all of us (children) gets passive income. He asked for my help.

I suggested that he move the funds to Vanguard (Custodian), leave the account under his name, simple 60/40 split on some Index funds, and use maybe half $600K of those funds to buy a few multi-unit properties.

Do you think this is a good strategy?

I appreciate any and all suggestions. Thanks! 

A.