G'day Thaz , Is it true that there are almost no options available for sole traders that have no family/dependents ? My accountant says that family trusts are generally the way to go but because I fall into the above category , they aren't an option for me
Hey bloke.
For the most part, there is no advantage from a tax planning perspective if you do not have any family members to distribute the trust income to, particularly if all the income are deriving is discountable capital gains.
There is an advantage from an asset protection point of view (i.e. the assets are not owned by you, rather it is controller /held by the trustee on behalf of the beneficiaries ). So if you are subject to a creditor claim or lawsuit, it may provide an added layer of protection in these instances. It may also help simplify your estate planning/wills (albeit the normal vesting date is 80yrs for a trust )
That said, if your affairs are simple and you dont have anyone you can distribute the income to, then the added layer of a trust would add unnecessary additional compliance costs.
Sorry about the rambling !! Haha.