Multiple Trusts as an Asset Protection Strategy? A while back I mentioned that if the trustee of a trust is sued the assets of the trust can be used to satisfy the liability of the trustee if that debt relates to the trustee’s role as trustee. This means where a $2 company is trustee of a discretionary trust and a tenant slips and falls and sues the owner of the property, the landlord, they will sue the company and the company will use the trust assets to satisfy the debt. So if the trustee owns 4 properties within the one trust and the tenant of one property slips and breaks their back the equity in the other 3 properties will potentially be at risk. However if there were separate trusts the assets of each trust would be segregated from the other trust - generally, as there are always exceptions. So one other way to strengthen asset protection is to use multiple entities. Carry different eggs in different baskets so that if you drop one basket you don’t break all your eggs.