Don't forget that the proposed tax changes for trusts are just that.. proposed. They haven't come into force yet (July 1, 2001 was the target), and based on recent press, they may be thrown out all together (or at least heavily tweaked !)
The other thing to remember that the new trust tax laws may actually be a fantastic
thing for long term investors.
The current plan that was slated for implementation on July 1 was that trusts would be taxed at the company rate, but you would also have the option of NOT making a distribution.
(PS. I know this applies to discretionary trusts but I'm not sure about other types)
This means that if you chose to reinvest your returns as opposed to distributing them, your returns would be taxed at 30% (when the new company tax rates come in), not at 48.5% if you are in the top tax bracket.
Of course, if you have a beneficiary on less than a 30% tax rate, then you can still make a distribution to them and they will get a tax refund at the end of the year for the difference between their personal rate and the company rate. If you make a distribution to someone in a higher tax bracket they will have to pay the difference between the company tax rate and their personal rate.
In short... don't give up on trusts !
You need to look at and understand the effect on your overall returns of using trusts / companies as structures for your IPs, but their primary use is for asset protection, not tax minimisation.
If you are only going to own a couple of IPs and don't consider yourself a target for 'Robin Hoods', then you may want to avoid the costs and hassle of using trusts etc.
However, if you are thinking of becoming (or indeed already are) wealthy through your IPs, then you really should think about protecting your assets ! You've worked too hard for someone to come and take away all you own.