Post
Topic
Board Development & Technical Discussion
Merits 1 from 1 user
Re: Bitcoin Inheritance Protocol with delayed broadcast (improved Dead Man's Switch)
by
BlackHatCoiner
on 16/01/2022, 14:26:28 UTC
⭐ Merited by Andriian (1)
You can then use you wallet normally and when you die the executor hands over their words to the person getting the wallet who then would have complete access to it.
And I'm asking why should there be an executor? We've designed a system in which we transact without having an intermediary, just like cash, but we need an executor to inherit? We don't. The system allows trustless inheritance.

Your solution:

Alice wants from Charlie to receive 1 BTC from her when she passes away. Thus, she creates a 2-of-2 multi-sig wallet, deposits the bitcoin and gives one key to Bob, the executor, and the other key to Charlie. When she dies, Bob gives his key to Charlie. Now, Charlie has access to the money.

Flaw: Bob may not give the key for a million reasons. It's down to him if Charlie gets the money or not.

----------------------

My solution:

Alice wants from Charlie to receive 1 BTC from her when she passes away. Thus, Charlie creates a wallet, gives her an invoice, she signs a transaction where she gives the bitcoin, but adds a condition that the transaction is valid after a specific time period. If she's alive after this period, they redo the process. If she's gone, Charlie can broadcast the transaction and get the money.

It's important to note here, in a situation like this in many many many parts of the world you NEED to have human involvement. There has to be someone handling the estate you cannot (legally) just hand over money.
You may need to state it officially that you're inheriting Alice's assets and therefore get taxed, but I find no reason to use an intermediary for that purpose. In most countries bitcoin is considered an unrealized gain, so you may not even need to state this.