Establishing multiple discretionary trusts is a wealth management strategy that delivers considerable advantages in asset protection, risk mitigation, tax efficiency and succession planning.
Using multiple discretionary trusts as a tool in their broader advisory service can significantly enhance the outcomes for clients of Accountants, Financial Advisors and Wealth Advisors.
In this article, we’ll explore how structuring multiple trusts can support financial outcomes and improve alignment with compliance obligations.
Legal and Structural Protections Offered by Multiple Trusts

Asset Separation and Risk Isolation
A trust is not a legal entity. The trustee of each trust is the legal owner of its assets. So, maintaining multiple trusts, each with a different trustee, creates a natural separation of ownership and risk.
This enables clients to strategically separate business assets, property holdings and investments across individual trusts while reducing exposure to operational and financial risks:
- Valuable assets can be held in a safer environment, while
- More risky activities can be housed in a different structure.
It also simplifies management by aligning each trust with a specific purpose or investment goal.
When assets are held in individual trusts, liabilities incurred by one trust do not affect the others. This approach provides effective legal insulation and preserves the integrity of each asset group.
By establishing multiple discretionary trusts for clients, Accountants and Advisors can construct an “architecture of protection” around their assets.
Family Law and Creditor Protection
Multiple trusts with different trustees, beneficiaries and appointors can offer a higher level of protection from marital or de facto relationship claims and creditor claims.
Effective structures are designed so that creditors can only access the assets of the trust with which the creditor trades directly. This significantly limits exposure for the client’s broader wealth portfolio.
Similarly, in family law settlements, trusts need to at least attempt to impede access to assets, keeping in mind the broad powers of the Family Court.
Succession and Beneficiary Control
Multiple trusts make succession planning more intentional.
Accountants and Advisors can create a separate trust for each family branch to enable targeted wealth distribution and help avoid inheritance conflicts. It also allows the trustee to manage each trust according to the specific needs of that family line.
These structures also provide beneficiaries with financial autonomy while ensuring that overarching wealth is preserved in a cohesive, legally compliant framework.
This becomes particularly useful where directorships, property portfolios or business ownership stakes are involved.
Tax Planning and Income Streaming

Enhanced Tax Flexibility
Establishing multiple discretionary trusts can create more flexibility to stream income in a tax-effective manner. With each trust distributing income at its discretion, income can be directed to beneficiaries in lower tax brackets, reducing the overall tax burden on the family group.
Avoiding High Default Tax Rates
Each trust must distribute its income by 30 June. If it doesn’t, the ATO taxes the Trustee on any undistributed income at the highest marginal rate.
This tax planning flexibility is critical for families with multiple income sources or where varying income needs and entitlements exist.
Practical and Actionable Steps for Advisors and Accountants

To leverage the benefits of multiple discretionary trusts effectively, Accountants and Advisors should follow a structured path.
Assess Client Needs and Risk Profile
Clients with diverse investment portfolios or multiple business interests often face increased exposure to liability. These individuals benefit from the compartmentalisation of assets through multiple trusts.
Professionals should also consider whether clients operate in high-risk sectors or require protection against future litigation.
Structure Trusts for Separation
Key structural decisions include appointing different trustees and establishing separate beneficiary groups for each trust. This enhances the clarity and independence of each arrangement. It also supports legal integrity in the event of disputes.
Typically speaking, trusts generally should not be cross-collateralised or linked through loans or guarantees, as this may undermine the separation that delivers protection.
Plan for Succession Early
You can use trusts to implement clear succession planning within each trust. This helps preserve wealth across generations and reduces confusion when estate assets are distributed.
Gradual transfer of control to beneficiaries can also be built into trust terms, enabling a smoother and more stable handover of financial responsibility.
This is particularly important for multigenerational business owners or families with complex dynamics.
Ensure EOFY Compliance
When June 30 approaches, all required documentation, including trust deeds and resolutions, must be finalised in time to secure tax advantages for the current financial year. This ensures compliance and avoids penalties.
PantherCorp’s systems streamline the process, helping
Accountants and Advisors work efficiently while
maintaining complete legal accuracy.
Evaluate Administrative Costs
On balance, establishing and managing multiple trusts is not without costs.
Accountants and Advisors should generally consider whether the long-term tax savings and asset protection justify the additional setup and maintenance fees involved in creating multiple trusts.
Key Considerations and Professional Guidance
Legal and Regulatory Compliance
Accessing trust deeds from our incorporated legal practice ensures that each trust operates the way it was intended.
PantherCorp offers:
- Expert oversight
- Regularly updated trust deeds
- Fast, convenient and accurate documents
Long-Term Maintenance
Trusts are not “set and forget” structures.
Regular reviews ensure that they remain aligned with evolving legal standards and the client’s financial circumstances. These updates are especially important following regulatory or legislative changes.
Trusts may also require updates to trustees, appointors or beneficiaries as family dynamics and business interests shift over time.

Why PantherCorp?
Comprehensive Support for Advisors
PantherCorp offers more than templates.
We have all your legal document requirements covered:
- Company Formations: ASIC-registered with tailored share structures
- SMSF Structuring: Compliant, bank-approved trust deeds
- Business Name Registration: Quick setup and integration
- Trust Deeds: Customised for discretionary, unit and hybrid structures
PantherCorp’s platform integrates with financial tools used by most accounting practices, streamlining the administrative burden and maintaining compliance.
Designed for Australian Professionals
PantherCorp understands the Australian market.
We provide:
- In-house expertise, not imported templates
- Regular updates
- Local support and expert guidance across Australia
Whether you’re advising business owners, designing intergenerational wealth structures, or supporting SMSF clients, we are with you all the way.
Trusts: Building Strategic Advantage with PantherCorp
Setting up multiple discretionary trusts can give Accountants and Advisors a powerful edge. With PantherCorp, you can:
- Protect high-value assets from risk and litigation
- Optimise tax outcomes through tailored income streaming
- Secure intergenerational wealth through structured succession plans
PantherCorp equips professionals with reliable, legally compliant documents that streamline trust establishment, compliance and EOFY resolutions.
In today’s environment of evolving regulations and increased risk, the ability to structure, protect and plan is more critical than ever.
Speak to our PantherCorp team today
We’re always here to help, and we’re ready when you are.
If you want to discuss Trust with us, book a demonstration of our platform or order any of our legal documents, just reach out via email order@panthercorp.com.au or phone 08 9388 0551.
Disclaimer: This article is for general information purposes only and does not constitute legal, accounting or financial advice in any context or application. It is also not intended as financial advice. You should seek independent professional advice relevant to your specific situation before acting or relying on any of the information contained herein.