Topic: Could inheriting Bitcoin from love ones be that difficult? - page 3. (Read 646 times)

In the case of bitcoin and crypto assets, I don't think it's safe for us to put our trust in strangers"lawyer". I don't know the process and procedures yet, but I find giving the key phrases/keys to outsiders is actually quite risky. I agree with you, I will teach my wife or kids about crypto and then I just give the private key/phrase to my wife. Sharing private keys with others is a very sensitive matter, but sharing with loved ones is still safer than with outsiders.

Perhaps a P2SH timelock or Multisig would be a more suitable alternative, broadcasting transactions and the handling of the data can be a little bulky. It'll be a bit of hassle to spend the coins at the same time because the signed TX would have to be re-generated every time a transaction is made.

I don't believe that there is a perfect way of doing so. There's multisig (ie. 2-of-3) but you'll always have to trust that the last key would only be revealed after your death. Transaction size of Multisig is probably a non-issue but I would have some doubts that certain parties won't collude to steal the funds, even if they are only stated to be revealed after death in the will.

No, there shouldn't be any issue with BTC inheritance, but unless there is a will after a persons death, then it would be down to a countries specific laws, and then we get into the problem of government regulation of crypto, and that's where things get tricky.

There is always the 2 of 4 multisig approach.
You have two the person inheriting has one, and whoever is in charge of your estate has 1.
This way you can always have security to send (since you have 2 of the 4) and the other 2 people can work it out according to your will.
If you know you are dying and just didn't get hit by a bus then you can give the person your keys and it's done.
Just like going to the safe and giving them bags of cash.

-Dave

These kinds of things I thought before and what I did was, the potential heir to my bitcoin or crypto if I die is my wife and as for my children I have taught my wife before how to transact in great detail.
and now if i need some bitcoins to do a transaction my wife does it, and previously there was a discussion for what and if memeng really need my wife to do it.
because my wife and I are both open to each other and need to know it and be able to do it for anything, and it all serves to complement each other.
I mean if when one of us can't do it for some reason, then one of us can do it.

That would then mean you trusting your lawyer with your funds, that is not so much of an easy thing to do especially when the sum involved is a pretty large sum, coupled with the fact the the Bitcoin network is a 'trustless' one, it would of course be much better to 'trust' the network rather than an individual. IMO, it would be better to go with a trustless method, and even if i decide not to, i would rather give my keys/phrase to my spouse and siblings than leave it with someone outside of the family. But having said that, we all come from different families, thus it is still up to every individual to decide how they would want to go about this thing.

Just like the OP has mentioned, I too noticed this has been discussed several times in this forum, and investors are actually worried about this but some of us might not want to go too technical in this regard as @BlackHatCoiner explained and I think a simple sealed instruction with your wallet private keys with your lawyer for the family to be opened after that incident would be easier for some but somehow, this is something to be highly considered.  

Although its quit difficult to trust somebody in this present world. But recently I have started educating my wife about Bitcoin. Before now she taught I was just wasting my time on the forum since she was not seeing any financial benefit. She never knew that I was taking my time to learn and observe from the forum. Just yesterday I enlightened her about wallets. I showed her how much I have and how the market affects my account. I also taught her about passwords and keys. I showed her where I kept the password and keys and told her how to use them in case I am not around. For me she is trustworthy and can handle my finance for the good of the children when I am not around. I just want to make it easy for her because she might not be technically sound to go through any other complex process to retrieve or have access to my wallet.  

It's really a waste when all of your assets will not be benefited by your loved ones after your death because they are the one who is worth having after you passed away. But the question is, how can we prevent such things to happen to our families where they have no idea how to claim our crypto assets? my answer is simple, you need to check first whether any member of your family can keep a secret and the most trustable ones will be the candidate whether you trust to him some partial details about your wallet, or choose to give him full access once you are gone.

That’s interesting they already started working on something like this. Though it feels like they have not made this so called Argent feature out of family to family pass on feature. I still think that writing up the private keys and having back  ups with your close blood relation that is mother father or bro-sis has got no harm at all. Obviously that entirely depends on how your relationships have been. If no trust then just write up the codes with your lawyer in a will and stay safe. With the crypto currency’s gaining value everyone these  days started to posses one so this would be easier in the near future to circulate around the family.

Of course and there is. Behold, steps for trustless inheritance:

• Create a seed phrase for your family.
• Derive an address.
• Create a transaction wherein you pay them the bitcoin.
• Set LockTime equal to a date in the future.
• Sign the transaction.
• Give them your signed transaction and the seed phrase.

If you've passed away before the specified locktime, your family can take the money by broadcasting the transaction once it's valid. If you're alive right before that time, spend the output and go back to step 3.

I don't think there's an alternative to just leaving access to your keys; at least right now. Don't just leave the keys though, probably have a simple written instructions if your brother/mother/wife/etc doesn't know how to import keys into a new device and things like that.

A certain ethereum wallet called Argent has this "social backup" feature that is quite interesting (it's pretty much something like a multisig, but idk how it works at the back-end), but I'm not too much of a fan of.

I have seen so many threads and topics about what happens to our Bitcoin when we are no more and if our Bitcoin asset can be transferred from one generation to the other. This is a serious topic we need to look into maybe we can consider a good alternative that can save us from total lose of our Bitcoin when we are dead. Based on my shallow knowledge on Cryptocurrency, I think If you don’t create a copy of that key and put that key in a safe place where the people that you trust can find it and know what to do with it, then the wealth that you’ve accumulated in crypto is just going to sit there. Could there be an advenaced way to get this done?

The nature of Bitcoin just like other cryptocurrencies that makes it complicated to pass down. Bitcoin is usually stored on the blockchain, a digital ledger that’s formed by a network of computers throughout the world that record transactions, including the exchange of Bitcoin. People usually make these transactions by using public and private keys. Public keys work like bank account numbers, and serve as an address that you can use to send other people crypto. Private keys work like passwords, and are made of unique, extremely long strings of characters that unlock your crypto. Unlike other types of passwords, however, private Bitcoin keys can’t be recovered once they’re lost or forgotten. That means that without those keys, people who are entitled to inherit their loved one’s Bitcoin won’t be able to get it.

We can always pass down assets that we already know and love like car, house, clothes etc and they are handled by law but with Bitcoin, it doesn’t really matter what the law says if you don’t actually have access to transfer those assets because there’s no formalized way to pass down Bitcoin, investors are coming up with their own sometimes bizarre protocols to guarantee that their heirs will get their digital assets. These plans can involve everything from locking their keys in secret lockboxes to hiring professional services to manage their crypto for their successors. But other crypto owners are still struggling with what to do, and have yet to find financial advisers who know much about crypto or who can even direct them to someone who does.

what happens to your Bitcoin later?

Families have been locked out of enormous fortunes because they couldn’t find their loved one’s keys. A man named Michael Moody was unable to unlock the Bitcoin that belonged to his son, Matthew Moody, who died in a plane crash in California. Matthew Moody was an early miner of bitcoin, which means his Bitcoin would be worth a lot of money today.

Technically, nothing. Again, Bitcoin is stored on the blockchain, so there’s a permanent record of it. That means your Bitcoin will exist as long as the blockchain exists, and regardless of whether you’re alive or dead. How your loved ones will be able to use that Bitcoin is a different question, one that largely depends on whether they know about it and if they know how to access it.

https://www.vox.com/recode/22971265/bitcoin-wills-estate-planning-cryptocurrency-nfts-death