If you are concerned that your assets might be exposed to creditors, safe places include:
Retirement plans. Federal law protects money in employer-sponsored retirement plans from creditors. Also, a combination of federal and state law generally shelters money held in an IRA.
Trusts. Some trusts are irrevocable, meaning that they cannot be canceled or changed without the consent of the trust beneficiary. Assets you transfer into such trusts generally are out of your reach, so they may be out of the reach of your creditors.
Some states and foreign locations have trust rules that make it especially difficult for creditors to collect on their claims. Despite the barriers you create for creditors, assets may be distributed to trust beneficiaries such as your spouse and other family members.
Life insurance. Some states protect life insurance policies from creditors. With some types of life insurance, you can do your investing inside the policy, tax-free. Eventually, you may be able to tap the investment account for spending money.
