So, what's the best protocol for Bitcoin inheritance?
Discussion
I wish i had a good answer for this but i don’t. Anytime i’ve tried to think of one leads to complex recovery or weakened security.
A treasure map to where you hid your seed phrase
Thr big question is: do you want to keep your estate private from your heirs before you're gone?
If that's not a constraint, lot's of options!
I trust my heirs, so they have seeds, we have PSBTs, we reset stuff anually, etc.
River has beneficiary designations. It's the only online service I know that does.
Past that you go with multisig services.
Liana Wallet is an option. Not the perfect solution but it worth a look.
Liana Wallet I would guess!
SLIP-39 and a lawyer if you’re not worried about a 6102 style confiscation. Easier than multisig and allows for some redundancy.
My favorite was 2-of-3 multisig
2 keys geographically seperated and 1 key encrypted with AES on final message(unfortunately, no longer available )
The AES decryption key goes to your next of kin. 12 BIP39words punched into a seed plate. I prefer this because it's easy to destroy if I ever need to, but this is subjective and I realize one could argue against this.
It's important to make it difficult to spend your deep cold storage. The longer it takes to spend the better.
That's why I liked Final Message. $50 paid in sats locked up thatessage for a year. Add another $50 it woukd take you two years to spend.
The Cold Card timers are interesting, but it's not practical to keep it plugged into a 9v battery for a year. The Q is better, but I don't think that would work either.
I am currently experimenting with time locked safes that can only be accessed for a narrow window of time, but I don't have a good solution yet. I think PINS on something simmilar to Final Message. The batteries need to be replaced and it's a good idea to keep a backup key.
Maybe we need Bitcoiner Safe deposit boxes with time-locks built by cypherpunks.
I don't have all the answers but it's important to think about this stuff before bitcoin becomes worth $10,000,000 per coin.
A proper dialogue/training over time without involving tech. My kid knows what to do should I die. (It's a riddle only she knows the answer to).
There is no single perfect answer.
Every family should Tailor-made their own🖖
Give your kid your seed phrase.
If you can't trust someone to not rug you before you die, they don't deserve any inheritance.
Steel plates hidden in your neighbor’s gutters