Re: Using Locktime for inheritance planning, backups or gifts
TL;DR
As a bad-case-scenario backup, you can create a signed transaction that's only valid several years in the future, and sends your funds to an unencrypted wallet under your control.
If you ever need it, all you have to do is wait until you can broadcast the transaction.
Long version
I'll start by quoting myself:
Note: I haven't used this yet for a real application, it's only meant as a proof of concept.
As a bad-case-scenario backup, you can create a signed transaction that's only valid several years in the future, and sends your funds to an unencrypted wallet under your control.
If you ever need it, all you have to do is wait until you can broadcast the transaction.
Long version
I'll start by quoting myself:
~why would you give your family access to your Bitcoins? If it's meant for the "hit by a bus scenario", there might be another option. I've been thinking about this for a while now, but haven't actually used it:
1. Print a normal paper wallet.
2. Sign a transaction to send funds from your cold storage to the normal paper wallet, but add a Locktime so it's only valid from a block far far in the future. Say 1 million block count or even more (but not so far none of your family members will still be alive). Or while you're at it: create a few versions (1 million blocks, 1.5 million, 2 million) and print them on different sheets of paper.
3. Print the transaction and store it with the paper wallet.
4. If you're still alive a couple of months before the first transaction becomes valid: burn it, the next one becomes your new fail safe.
If your family ever needs it, all they have to do is wait a few years, broadcast the transaction, and the paper wallet becomes valuable.
I brought this up in another topic, and received more support than I expected. Hence the dedicated thread 1. Print a normal paper wallet.
2. Sign a transaction to send funds from your cold storage to the normal paper wallet, but add a Locktime so it's only valid from a block far far in the future. Say 1 million block count or even more (but not so far none of your family members will still be alive). Or while you're at it: create a few versions (1 million blocks, 1.5 million, 2 million) and print them on different sheets of paper.
3. Print the transaction and store it with the paper wallet.
4. If you're still alive a couple of months before the first transaction becomes valid: burn it, the next one becomes your new fail safe.
If your family ever needs it, all they have to do is wait a few years, broadcast the transaction, and the paper wallet becomes valuable.
Note: I haven't used this yet for a real application, it's only meant as a proof of concept.
Hi, we have created a plugin for Electrum that intends to make these locktime-based features simple and secure,
also we added the possibility to contribute and participate in the project completely opensource, becoming Will-Executor servers.
Find the information on this post.
https://bitcointalk.org/index.php?topic=5516266
I hope you can enjoy it and be useful