Large bank accounts, in our view, should be titled to a limited partnership – and preferably in an account in another state. We protect more substantial accounts (usually over $500,000) in international trusts or international LLCs. Or larger accounts can be titled to limited partnerships, which in turn would be owned by an international trust. In some states, spouses – with some level of safety – can title their accounts as tenants-by-the-entirety. There are other options to protect cash accounts from creditors. For example, you may ‘sprinkle’ gifts. This will also reduce your estate taxes. Or you may pay down loans against exempt assets – such as mortgages against a fully homesteaded home. But there are other options. One may, for example, buy exempt assets, pay preferred creditors or non-dischargeable debts (student loans, fines or taxes), or prepay future expenses. There are many ways to rapidly and legally deplete bank accounts in the face of a lawsuit.
