Don’t Let Them Get Your Money! Where to Hide Money from Lawsuits, Creditors, and the IRS

Are you worried that someone might be coming for your money?

Whether it’s a potential lawsuit, or even if it’s the IRS or a creditor, you probably want to protect your assets.

If you want to protect your assets, you need to know where to hide your money, and know how to properly structure certain accounts in order to avoid having someone drain your financial well dry.

Here are some places that you can hide your money:

Retirement Account

One of the best places to hide your money is an ERISA-qualified retirement plan.

Not only can you keep some of your money safe, but you can also earn a tax-advantaged return on the money.  The money in your retirement account is protected from liability lawsuits.  Additionally, your retirement account might have some protection from bankruptcy and creditors (not always, though).

Even the IRS is reluctant to levy against your retirement account.

The IRS does have the ability to access any money that you have access to (so if you can’t withdraw from your account for whatever reason, the IRS can’t require the assets in the account), but in many cases officers are slow to move against your retirement account, even if they could.

Can you hide your money from the IRS?


Transfer of Assets

Consider transferring some of your assets.

One place to hide your money is in a business — just make sure that you set everything up properly.  If you keep assets in your business, they can be protected from liability lawsuits, and they even might be protected from different creditors.

Your can also use your business as a shield for other assets.  Guru Robert Kiyosaki did this not too long ago.  One of his many business declared bankruptcy as a result of a lawsuit, but that business only represented a small fraction of his assets.  His personal fortune remained unaffected.

You can transfer ownerships of your assets to someone else, or even transfer ownership to a trust.  That way, you no longer own the assets, and it is harder for others to come after your money.

The Use of Trusts

If you really want to figure out where to hide your money, you can make use of certain types of trusts.

You can use different asset protection trusts to help you protect your money from lawsuits, creditors, and even from the IRS.  However, if you hide your money in a trust, you need to be aware of some of the downsides.

First of all, the kind of trust that is most likely to protect your assets is an irrevocable trust.  Now, you no longer own the assets; the trust does.  The trust can use the money for the benefit of your beneficiaries (including yourself).  However, you lose a measure of control over your money when you put it in a trust like this.  The reason that your money is protected to some degree — aside from the fact that it is no longer technically yours — is that you don’t have ready access to it in many cases.  Even with the IRS, the rule is that you have to be able to access your money.  If you can’t get at it, neither can the IRS.  Of course, the downside to this setup is that you don’t always have the right to access your own money.

Be Careful of How You Proceed

As always, you need to be careful of how you proceed.  Whether you are organizing a business, setting up a trust, or transferring assets in some other way, you should consult a knowledgeable estate planner or attorney.  Make sure you understand the process, as well as the restrictions related to your money.

Also, realize that putting all of your money into these types of accounts as a response to an impending problem is not an acceptable solution.

Creating a trust after the creditors come calling, or after you are served with a lawsuit, can negate the effects of the operation.  You need to be making asset transfers and retirement contributions before someone comes after your assets.  Figuring out where to hide your money is more about long-term planning and asset protection than it is about stop-gap measures when an emergency presents itself.

Have you ever had to hide your money? How did you do it?

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Published or updated August 21, 2016.


  1. In general, this sort of thing leaves a bad taste in my mouth. Just pay what you owe.

    That said, my in-laws lost their house and had to move in with us. They were living on my MIL’s disability: $1,100 a month. Yet they were still making payments on their credit card and keeping their cell phone! I told them to knock it off. So what if they’re hit with an early termination fee? Their income is protected from creditors.

    • You are cruel. They raised your husband or else he wouldn’t have been available to be your husband in the 1st place. They deserve ABSOLUTE RESPECT & plenty allowances! If it strains your budget, get a 2nd job or a work-at-home side business online. But always respect your elders even IF it hurts! ALWAYS.

      • Wow, you have lots of issues.

      • Apparently you can’t read. She never once suggested the in laws are a burden. The advice given was don’t worry about having creditors garnishing your social security disability payments, by law nobody can do that unless they are the feds and you owe some debt to them. In such cases the feds are above the law in that they don’t need to operate with judicial rules. They don’t need a judge to do anything. (laws should apply equally for the feds).

        Go back and read it again. She did not infer the in laws as a burden.

      • Keeping the inlaws from living on the street is pretty respectful in my book.
        Pay your debts. Every time always.

      • Our Elders Deserve respect. they worked hard to Raise all of us.I hate people who treat disabled + elders bad !god says thou Shall not judge. ples POST ANY SAFe ways for me to set up Tax free saving for my disabled son and family, how can I Save funds for my kids future after they 18. how can I set up tax free saving for them college, medical I have no insurance I have to always have at least 5999″ if our car died ,plus we’re paying plumber, due to Harsh winter pipes froze, We hav many expenses how can I save for us. Without Taxes. I already worked hard. No child support. I’m not rich in trying save to get us a home. We had pay 10 hotels we list home last year I’m born IN army… IM not A drug dealer, I did volunteer work for many years. Now WE NEED HELP I’m just trying to save protect my kids have home. They have no one in case I die. Ples email me sugar spice bread don’t send me goverment ads. I’m not A alien. I’m AMERUCAN citizen MY MOM DIED from army . we deserve help WE EARNED IT my dad helped negro rights in 1965′- he. Went Harvard university. ALIENS ARE TAKING all our Money. Its wrong

        • Alien Making it in American says:

          Aliens taking all your money? You must be extremely rich for aliens to take your money. Where did you keep your money and how did aliens get to your money? Next time I suggest locking up your money in a safe or depositing it in a bank.This would prevent further taking or stealing of your wealth or money by aliens. Oh, please be quite. You are talking nonsense! Go to school, spend more time googling for the information you want, and surround yourself with people you want to be like. That’s what “Aliens” do. They don’t steal a dime from you. They work hard. They come here with a dream, and you born here have no dream.

    • Heime Schwartzbaum says:

      Well, this is Obama’s America, where lawsuit happy ambulance chasers can take every penny you own, even if you get setup by a professional “accident victim.” Happened to a friend of mine here in Florida, which is loaded with the “chosen people” if you get my drift. She was backing out of her space and suddenly hit a pedestrian that popped out of nowhere. A pedestrian with a friend at the the perfect angle that had a camera videotaping the whole thing! Obama is a lawyer, and they protect their own. God forbid you are a white person and have any kind of incident with a minority. We need to ditch all these establishment politicians. Hillary is the worst.

      • omg its not suprising to read anti semitic racist diatribes in comment sections, but to sign your name? some might think that brave , after all you arent hiding your stupidity behind a mask of anonymity, but the truth is you represent everything trumpian. so my congratulations for not covering your red neck with powder white makeup, and hopefully you will crawl back into the cave you came from when trump is defeated by real Americans

        • Jacob, what an ignorant hypocritical moron you are. What gives you the balls to call someone a racist and stupid with their name on their post when you did the exact same thing? That makes you even stupider. WOW!

          The term Redneck is derogatory and racist. You are a blind bigot.

        • Jacob crawl back under yours! You must be living in Florida!

      • Good for you, “Heime Schwartzbaum” for having the guts to “tell it like it is”!!

        Jacob J, YOU and those like YOU, are precisely what is WRONG with America! Stop the B.S. about claiming that Americans fed up with Obama’s DESTRUCTION of this Country and his “heir apparent” the criminally corrupt Hillary Clinton, and try TRUTH on for size!

        Donald Trump represents ACCOUNTABILITY. We’ve got a million plus Muslims here with no way to discern friend from foe UNTIL one or more of them ATTACKS! We need to keep any more of them from coming here, as well as strictly monitor/investigate those already here, to PREVENT MORE ATTACKS AGAINST AMERICANS! \

        Just what the HELL is it about this reality that YOU fail to comprehend?

        We have FOURTEEN states who “pay” more in welfare annually, than a job paying $15/hour would, so WHY would Obama and Hillary’s voting base of “Entitlements Matter” get up off their generational welfare-mooching asses and go out and WORK FOR A LIVING, when our LIBERAL Governments enable their laziness?

        Give me a BREAK! Trump WILL be elected President because if not, we are DOOMED as a nation! REAL Americans are those who support Trump, not Left-wing lunatics who throw around baseless accusations of “bigotry” whenever someone states FACT that just so happens to cast a minority group in a deservedly disfavorable light!

        Now why don’t YOU crawl back under the ROCK you crawled out from under, Jacob???

        • michael jones says:

          Well all yhese illegals and muslims coming into the country. Who is friend or foe. Pay very close attention people. If you see someone who looks spanish thay are the enemy. If they have a big beard , a head scarf face is covered they are the enemy. If all looks great if they will not eat pork kill them. Ask tnem to see thier bible. If they dont have one or can recite the first part of genesis and if ask and they dont tel u jesus christ is the one true god they shojld be shot. If they see 2hwt u have thwy should be shot. If they come to ur house looking tney should be shot. Damn just shot them and be done with it. The real zombies, aka yhe walking dead are those on tne entitlement programs who come to my door . They are dead before they get there. U are not entitled to whqt i have.

          • Miz Dizzymizzy says:

            If you are going to attack people based on their religion or culture simply because they don’t share your beliefs, at least make sure you use proper spelling and grammar when you dov. All you are doing is making yourself look like an illiterate, uneducated jerk.
            It seems to me, after spending a fair amount of time trying to translate your post into actual English, you are claiming to be a Christian. At least your bigoted remark about not having a Bible or being able to recite the first part of the book of Genesis (note my use of capitalization) seems to indicate you call yourself a Christian.
            Have you even READ the Bible?? If you had, and based upon your total lack of literacy, I don’t believe you are capable of reading the phone book, let alone the Bible, you my friend have not a clue what it means to be a Christian. The Bible commands us to love our enemies. Every misspelled word you wrote suggests you are no more a Christian then bin Laden was. I’m sorry to sink to your level of attacking other human beings, but after reading what you wrote, your words almost make me feel sorry that I’m a Christian.
            I apologize for basically sounding no better than you, although my post is spelled & punctuated correctly. I’ll pray that perhaps you get a Bible on tape so you can actually hear what It has to say. I’ll also pray that you learn to love your fellow man as we, as Christians are taught to do.

            • “”If you are going to attack people based on their religion or culture simply because they don’t share your beliefs, at least make sure you use proper spelling and grammar when you dov.”

              Thank you! I needed a good laugh today. What exactly is “dov” in your proper response?

          • I agree. INLT SAYS IN constitutiona in Gid we trust. So If You don’t Believe in god, then You can’t come to USA, the. WHOLE reason we Built constitutiona+ to protect up this country to HELP OUR OWN FAMILIES. WE EARNED IT .we CREATED BUSINESS. MY DAD FOUGHT for BLACK AMERICAN army If course it’s fine to be any nationality. I help Asian Phillipino Greek Italian, back.indian.French Canadian Jewish All american. But we have no more room for illegaul aliens. We ARE FULL, after Isis they GAVE US A REASON TO not trust them. I lost my mom in army MY KIDS have no grandparents. NO HOME AT ALL. We LOST MY DADS home and I can’t even get any help I have a right to save for home. And laws It shouldn’t just help qekdare people it SHIUD ENCOURAGE MIDLE INCIME PEIPLE to own homes. It builds value if Out country. The mortgage company taking our homes. They shod make payment plans. How can I s setup find for my disabled son we have No insurance. So I shodnt be taxed On A plan to help my disabled son+ other kids need college money I’m single mom. I’m victim if abuse. I’m Not Screw the goverment. I’m not a lazy welfare loser if I setup medical fund and save for us to get Small home or. we end us freeze to death. I paid 15009 motels. Ples TELL ME HOW AWTUP emergency medical find for my kids future, And Home expenses tax free. where else can I keep money safe

        • Atilon Marc says:

          LMAO, Trump won and his supports are now getting a glimpse of what to expect and it’s not as planned. Mexico is not building the wall nor is Trump. Trump is now okay with illegals and muslims coming into the country,, but he would like adding additional guideline to Obama current plans to their existence and or travels. He now realize that Obama has done great things for the County and would like to keep his legacy in place, only to make some small adjustment to some of Obama plans. He has put a person in office that will strike down Obama’s future plans to increase minimum wages. Trump and his team has stated that they plan to take-away homeowners rights to write off their mortgage interest. Trump and his team plans to close all public school systems and require parent to send the children to private schools (which most parent won’t be able to afford) and Charter School (Which most of them lack the resource available to public schools students). Trump and his team will get rid of Veterans Health Care and replace it with a 12k yearly voucher (Use it or lose it), and we all knows what that means, our Veteran would not be able to afford outpatient service of any kind (they will die because we failed them, after they have put their live on the line to protect us) And you’re complaining about welfare that should be in place for the elderly, physically and mentally ill. YOU AND PEOPLE LIKE YOU IS WHAT’S WRONG WITH THIS COUNTRY. YOU GUYS HATRED IS SO STRONG THAT YOU GUYS COULDN’T AND STILL CAN’T SEE THE TRUMP AND HIS TEAMS. THEY HAVE BEEN SHARING THEIR PLANS ON NATIONAL TELEVISION AND NEWS PAPERS AROUND THE WORLD. I do truly understand your feelings and pain, but sometime we need to take a deep breath and step outside the emotions, pain, hate, frustration and all other negatives things that adds to it. When we clear our minds, is when we can see the whole picture and make good sound decisions in life. Trump is in office and no matter what happens, America is strong we will pounce back. We can only prey that Trump keeps a mild manner demeanor and don’t agree on the radicals he put in office.

          • Dang Atilon, where are you getting your information, “The Daily Propaganda”? The ridiculousness claims you are making are so far off it makes one think that you are a humanoid drone Manchurian voter for the left. The claims you are making here are just assanine. I’m not even going to correct you or give you any of the real info because you are that stupid and brainwashed. WOW!

        • I hope you now realize that because Trump was elected we are divided like never before. Division makes us weaker than ever and fail now becomes and. I know this is probably over the head of most small minds living in thier micro casium of this world. But just remember this as it unfolds. Also remember we were safe for 8 years. What happens now is all Trump not President Obama.

        • The funny thing is that you are not truly an American. Where did your parents or grand parents come from? Hypocrite. “United we Stand, Divided we fall”.

        • Anyone who supports Donald Trump is an idiot on a level that deserves immediate termination of any attention they may have had before revealing how utterly stupid they are. Thus, TS;DR. (Too stupid, didn’t read.)

          We are doomed BECAUSE of Trump. He’s even admitted he didn’t realize how hard the job would be. He CAN’T HANDLE IT!

      • It is just your opinion

      • These comments are hilarious.

  2. I agree most people are in debt because they choose not to change their lifestyles. If you are in debt and have a negative cash flow every month you need professional help, that’s the bottom line.

    • Yes, including you MR. Moore, everyone in the world needs financial education & advice. Sadly though, you voted for a government official that supports not offering financial management in today’s schools. So guess when you’re 80+ you should expect to see immense, widespread poverty.

    • michael jones says:

      Some folks are in debt due to bad descion making. Ie if you tell someone not to buy an exspensive car and dont have 5 kids. Don t buy that 35 acres of land. They tell u to fuck ofv and mind ur own buisness then when they go bankrupt and get on welfare. Tney then wqnt to say yney shouldnt be drug tested etc . Well screw them. Its their own fault where they end up and if ghey end up i need tne poor house because of it its their choice. People have to stop letting others be the recipient of their bawd descion making

  3. The problem as presented is, as working folk your at a disadvantage and being preyed upon by the irs whereas people with money pay insignificant amounts 14% and lower if any at all!
    whereas the working class has no access to the deductions loopholes etc etc.
    working class people pay 27% and upward and still have to pay some one else to figure and file the return. The other problem is where you take your taxes to be figured the person doing them gets paid by how many returns he files. So again you get taken by the system. The fear the IRS holds over us is criminal. their freehand at dealing out punishment without providing constititional rights and redress is un-american…

    • RIGHTY-‘O, there Don!
      You hit one of the biggest problems with a ‘Capitalistic Monetary System’ on its [nail] head! The other issues are equally as biased. So then ponder this dear reader: Why on earth do we even remain in such a country. Because no matter where you go this wrongful system.has been transplanted, instilled, integrated & is equally raging in most other countries (especially wherever Caucasians (Whites) love to congregate. Take a good look at development of Panama Canal, Guadalajara, Philippines, etc. All once beautiful, UNSPOILED, areas where living was natural, healthy, low cost and ideal. Now each is another cess pool of extremely high costs, unhealthy air & environment & barely anything left is natural except for decorative landscaping. Hah! So where are the wealthy [& privileged] going now: ISLANDS. Yes, their last stand to be as far away as possible but still be close to their financial investments. To claim U.S. citizenship but technically NOT LIVE amongst the muck & mire.

      Whether or not you choose to remain in the U.S. is not the issue, but where you stash your $ is.

    • michael jones says:

      I work offshore i pay 30 something tax liabolity. Then im taxed when i buy stuff like u as well not sure if 3bt gets taxed. I tell u im thinking about getting 8n welfare and hiding all my mon3y at home

    • Don you are absolutely correct. Furthermore, taxation without representation is how the American Revolution began. With that said we are working for free 27% of the time because the taxes we pay are not being allocated to benefit us and we are not being represented. We are slaves forced to work for free 27% of the time and if we object it doesn’t matter. If we stop working then we are homeless, doodles, unclothed, and cast aside. That’s means we are slaves.

  4. Read and understand any contracts yourself before you sign them. Make sure you understand the consequences of any default. Many banks, financial institutions and creditors will have clauses in their contracts which are way beyond the limits of the current contract. Consider the risks and look at the downsides. Be especially careful when signing personal sureties as they can have very serious negative consequences.
    Remember that the deck is heavily stacked in their favor and you must do whatever possible to protect yourself.
    As a last resort communicate and negotiate.

  5. I enjoyed the article. These are some good tips. Being proactive and changing your lifestyle and paying your taxes would go a long way to preventing this kind of situation in the first place.

    Just my thoughts.
    Thanks for the informative post!

    Laura Beth

    • Dear sweet, ‘pre-conditioned thinker’ (taught by wonderful parents & know no other independent thought due to lack of life experiences yet to come) Laura Beth, doing what APPEARS OR SEEMS TO BE RIGHT in a capitalistic system based on greed and benefitting the privileged IS NOT always best for every individual [especially the UNDER-privileged]. Hopefully, after a excellent course in Economics you will come to see this as you age, my dear. Meanwhile, hoping you have a fantastic & secure life.

      • michael jones says:

        My mom taught me and i guess other folks moms etc are just sorryband didnt but mom taught me to earn what i have as i was 11 years old milking cows at 4 am and 4 pm then getting tomschool late and homework after milking. . These values arent taught in the black community. Hell by subsidized housing u just make it easier for them to share there success stories.

        • Jessica Mitchell says:

          Michael jones, I happen to be African American and I was taught values and independence from an early age. You really shouldn’t make a blanket statement that values aren’t taught in the black community. My mother single-handedly raised my sister and me without any public assistance in the era before Affirmative Action. We never had welfare or food stamps. She worked hard and taught us to study and work hard, as well. We lived in a Harlem ghetto, but were still taught to respect our elders, be kind to the less fortunate and never buy into stereotypes. Maybe you weren’t taught as well as you think you were.

          • Jessica Mitchell says:

            Also, I can tell from the grammar in your post that you were milking cows when you should have been studying. Nothing wrong with that…just saying.

          • Jessica, I understand what both you and Michael Jones are saying here and I know that you are both right in your perspectives. For instance, I am a white male and have to hear many people talk about this white privilege. Personally, I have never had it. I grew up impoverished in a predominantly Mexican and African American ghetto, was picked on, ridiculed, and discriminated against from a child on up. When I got to the adult world I then was effected by laws that made it legal to discriminate against me based on the sole reason that I am white. This made and still makes absolutely no sense to me. I understand the reasoning for affirmative action laws but it’s gone too far and it’s completely hypocritical. Especially for someone like myself.

            My point is that I am the exception same as you are but with reversed roles. Funny how that works.

            Finally, I would like to say that you are both rightfully but closed minded my biased here. The African American communities have their patterns as do the Caucasian communities. They are 2 different cultures that have their negatives and positives. More negatives impact the black community but that is because the upper hand is in favor of the rich and powerful who control congress and the media. They suppress minorities and blame the majority in a racial sense so we focus on each other and not on them.

            I say to both of you that the real divide and suppression is wealth and not race. You are being fooled.

  6. Kevin McMillan says:

    I get agree when someone says read the fine print and the duh, but it is great advice. I get irritated when someone says pay your bills, you created them you owe them! Those people don’t always know the circumstances even though they know everything! What if that person was injured on the job, the workers comp. Claim was denied, savings exhausted, interested and late fees piled up, the financial institutions only wait so long! It took 2 years to open my claim!

    • You are right. To add to that, the financial jargon is way out of comprehension for average Joe signing a contract. This is due to the lack of financial education given in public schools among other things. The legal jargon in conjunction with the financial jargon just allows financial predatory institutions to capitalize off of the naivety of the majority of young folks and many inexperienced older folks. The system is this way on purpose.

  7. Thank you for this informative article. I’m quite saddened by the comments, though. There is a serious lack of understanding on all sides. First, situations can happen that cause personal financial turnaround in all socio-economic statuses. This does not necessarily mean that a person was careless, but stuff happens. Second, when one manages to recover from a turnaround, even in the slightest bit, the person would like to protect what they have from debt collectors… this may not be a means to get out of paying back what they owe, but rather a chance to build up more cash reserves to then negotiate with their creditors from a position of power. My husband and I had a business that was successful until we lost a major contract because of a fickle, racist manager. So, we changed our business to create a new source of income. Unfortunately, the impacts of the ACA tax penalty caused major changes to the market we were in and we could not keep up with the business debt. So, we moved to a larger city, got new jobs and are busting our butts to save up money to repay our debts. My mother is currently terminally ill and I will be getting a small inheritance from her. Instead of using that money to wipe out my debts and have it be completely gone, it is wiser to utilize that money to invest with the knowledge I now have to increase my income, pay off the debts and have lasting income derived from investments rather than work. This is not something only available to the rich, but is available to all Americans and legal immigrants who are willing to take the time and learn. I utilize the knowledge I have gained through failure to succeed. With a little research, you can find all sorts of educational materials on financial management, wealth building, and tax laws. This is not something that will ever be taught in schools, because government-controlled schools are there to produce workers (aka taxpayers), not free-thinkers who seek knowledge to reduce their tax liability.

  8. Jenn Taylor says:

    I am so glad that I wasted time, looking for assistance on how to “hide” a small $1000 check from a creditor that has been taking money from me since 2006. Back in 2011, I offered enough that, with what they had already taken from me in all these years, would be $12000 over the initial balance of the lawsuit; which was $5000. They declined the settlement offer, They have also depleted a couple bank accounts. garnished my wages and has made it impossible to get another bank account. As they would eventually locate it and bam, its gone. I have paid them upwards of $10k.

    I have my own business now, “cash business” so they haven’t gotten much in 5 years. When does it become “illegal”, in Colorado, to continue to take what little bit I do have?

    I am sorry if I offended anyone, I am merely venting and am looking for a solution.


  9. This a blog based on keeping the most of your dollar made. It seems that all of you have lost your minds. Do you not have the ability to stay on track? Why did you even come to this site in the first place, to push your agenda’s concerning elections? WTF is going through your heads when you are verbally vomiting all over this person’s blog? The question was “have you ever hid money, and how…” I noticed that someone said pay what you owe! Do any of you even know what a dollar is worth anymore in our country from bank fees, debts, and bloated government cost? Pay what you OWE… as they disintegrate the very medium we use to do business causing us to pay more and more! Do you know how much money is missing? Money injected into the economy only to be siphoned off by private entities who are in direct affiliation with the people who printed it! Did you know the FED is not a government agency? Of course, you know it all and chose to leave racist, bigot comments about elected officials who all hide their money, talking about a drain on the system. Your ignorance and lack of self control is the disease plaguing this country and will eventually kill us, but I digress… back to the question. Cash Company investments are a great way to keep the most of your cash and show consistent growth for good standing with creditors agencies. Examples being, service industries for cash with no taxation, vending machines, Point of Sales equipment, Car Washes, Coin Operated Laundry… etc.

  10. I thought I was coming to this website to get info on how to or more info about trust and all i see is a bunch stupid back and forth for and against Trump.

    Might have to find another place to visit with less off content comments.

    PS:: happy new year !!

  11. I think the person that wrote this just gave great steps to help you commit fraudulent conveyance.

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