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What if the person holding private key is dead or met with an accident and lost memory or the person gets Alzheimer?
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I think your fears are well founded. This could happen even if the user has multiple wallet backups. One might consider writing a letter explaining how to get access to their bitcoin, then keeping it in a safe deposit box. In the event of death or incapacitation the box will be opened by the executor who will then be able to recover the funds.