Is it safer to keep investment accounts in a state other than where you reside?

That can be a good idea for this reason. To enforce their judgment against your assets, your creditor must obtain a judgment in the state where your assets are located. When your assets are located in another state, your creditor must obtain a judgment from that state to seize those assets. Courts in one state cannot seize property in another state. Relocating your liquid assets to other states can thus delay or frustrate a creditor attempting collection. But, obviously, this is seldom a good long-term strategy – though it can delay seizure of your investments until you develop a more formidable plan. In any event, you want to title these accounts to a protective entity – such as an FLP or LLC in another state. Also, for maximum safety, keep these accounts in banks or brokerage firms whose offices are outside of your own state. These steps are unnecessary in most situations but we have recommended these strategies in some instances.