Hi, I have been reading a book from Tony Melvin and Ed Chan: Book: How to Legally Reduce Your Tax ... without losing any money! - Knowledge Centre With no experience whatsoever, apart from reading the books and watching some DVDs, I want to setup a trust for the following purpose: * Income generation via share trading ( and maybe options trading ) * Beneficiaries are me ( highest income tax bracket ) and spouse ( lower end income tax bracket ) and 2 children ( of course, will not receive any income at this stage until they turn 18 ). * Trustee is myself instead of a company Questions: 1) I read about Discretionary Trusts, which allows the income to be distributed to the beneficiary that has a lower tax bracket. But my question is, what if the trust made a loss on share / options trading ? From what I read, it is quarantined to the trust and I could not pass on the loss as a tax deduction to the beneficiary. So maybe a Hybrid Discretionary Trust would be better ? But can you use a HDT for share / options trading ? Is loss that can be passed on is per trade or per financial year ? Is the cost of setting up a trust considered a tax deduction ? Capital allowances: overview 2) I have little money to invest or trade, thus am considering a trust with a personal ( me ) trustee instead of a corporate trustee. What are the implications of changing a trustee later on to a corporate trustee ? If there's only a few investments when changing the trustee, this should not be too difficult ?? 3) Finally, I am not an accountant ... what should one do for book / record keeping ?