Family Trust and negatively geared IP, and Company structure for “Personal services income”

Hi all, I've scoured the web for advice on this but there isn't anything specific

I am a SAHM, of three lovely children. I am not likely to return to paid work for considerable amount of time as my kids are very young (infact one is a new born).

My husband runs his own business as sole trader (plumber).

Me and my husband have 2 negatively geared IP, one of them is 99% in my name, and 1% his. the other is 50% each. This setup was done because that was the advice given to us back then when purchasing the property. At that time my personal income from work was considerably higher than DH, as he had just started his sole trading business.

Our plans kind of got stuffed with untimely arrival of kids, forcing me to leave the workforce earlier than I had anticipated.

My problem is that since the majority of ownership of IP is in my name, and I am not working any more, I had to keep carrying the losses forward, for the past few years.

even though I am, (and have been right from the start), been doing all my biz admin/booking, I can't be employed by DH as his is a sole trader.

Last month we saw a financial/business advisor who's recommendation to us was basically to

1. setup a Family trust and put both IPs in it, and have some of Dh's income distributed through the trust.

I asked my accountant to do this for us and she is opposing it on the bases that it will cost us unnecessary expense,to set up/ maintain/pay CGT,stamp duty etc. and since the losses can not be distributed by the trust I will be in a worse position than before. (although the main reason of us wanting the trust, was to protect them, considering our biz possible future liabilities, and income distribution being secondary)

2. set up a company instead of the sole trader, as both of as directors and 50% each share holder. This would mean being employed by our own company, and drawing wages, and what ever is left over being paid out as dividends. This will also suppose to ease the process if our biz expands in future and we employ other people, this will also allow my super fund to be resurrected again, since its sitting there doing nothing as a non contributing member.

Again our accountant opposed it, based on too much cost of operating the company, (fees, work cover, super etc), and the main one being that DH can't be employed by his own company, since his work is "Personal services income" cause its earned mainly as reward for an individual's personal skills, and my existence adds no value ( I beg to differ in that my existence keeps him out of jail, not lodging tax returns but that's beside the point).

the advisor did made us aware of all the cost involved, didn't give us a figure as it was my accountants job to crunch the numbers, but we knew we would have some substantial cost to get this started.

at this point I am really confused. I know that there must be a way to resolve this issue, cause frankly  at this stage the only feasible solution for me would be working from home, and since I know what I am doing already would prefer to just keep doing our biz books etc but get paid for it, so I don't have to cringe looking at my losses every year.

My questions are

did I pay $600 to an advisor who gave us wrong/illegal advice?

My accountant is incompetent/lazy and is trying to get out of doing complicated things like trusts and company tax., and I should find a better accountant.

Is the company solution, really illegal? Google is not helping me much.

Since all the negative gearing losses are locked up in the trust and can not be distributed, till trust makes a profit/income. how will I know when this will happen? what is considered an income? why doesn't our income that gets put into trust not counted? does this mean we will keep making a loss till the properties become positively geared, at some point in future (probably more than 10 years away)?

I am not trying to do anything illegal, but I really don't knwo what to do when two seemingly professional people whom are getting paid by me, give em two completely opposing solutions, accusing the other as being wrong. Any help is much appreciated. Thank you in advance.