Quote from: apogio on October 29, 2024, 01:08:10 PM

This subject is very important for me, for multiple reasons.

I think it worries many bitcoiners that, the fact that we have full custody of our hard money, makes it difficult to develop a good inheritance plan.

Searching through the forum, I 've seen many topics around this subject (like this), but my purpose is to share some plans and (perhaps) construct a solid one together.

Plan A:
1. Construct a multi-signature wallet, that consists of 2 cosigners (2-of-2).
2. Back up the 2 cosigners twice each. So you will have A1, A2, B1, B2, where A1 = A2 and B1 = B2.
3. Store all the backups in 4 separate locations.
4. Hold A1 yourself and give B1 to your inheritors. A2 and B2 will be stored in very safe places that you will determine. A1 and A2 will be known to you only. B2 will be known to the inheritors. So they will know where B1 and B2 backups are.
5. In your will, you will give them the locations of A1, A2 and specific instructions on how to recover the wallet using one of the A1, A2 and one of the B1, B2. Obviously you can let them know about your plan and teach them what they will need to do beforehand. So in your will you need to specify the locations only. But a recovery plan written in the will is not redundant in my opinion.

Advantages:
1. Only you have access to the wallet during your lifetime, because the locations A1, A2 are not known.
2. The inheritors have B1 and B2, which means that they will need to "lose" both of them to lose access to the wallet.
3. The lawyers know where A1, A2 are stored, but even if they gained access to them, they can't do anything because they are ignorant about B1, B2.

Disadvantages:
1. Kind of hard for the inheritors? Perhaps...
2. If the lawyer loses your will, then both locations A1 and A2 become unknown, so the wallet is non recoverable. To mitigate this, you can use 2 lawyers, one holding A1's location and one holding A2's location.

Plan B:
1. Generate a wallet (simple single-sig) and give it to your children. Also keep a backup somewhere safe (the children can know about it).
2. Create a locktime transaction, setting the locktime to be X years from now. The receiving address will be one address from the wallet in step (1).
3. Give the locktime transaction to your heirs, but also keep some backups in some places.
4. When the time passes, the children can receive the funds.

Advantages:
1. Very easy. One broadcast and everything is good.

Disadvantages:
1. The fee needs to be planned ahead. Of course the children can use CPFP later, but this adds a little complexity.
2. The years are limiting. You can update the locktime transaction of course, but you will need to update your whole setup again. May cause confusion to the inheritors.

Please, share your ideas below and add your plans so we can have a discussion about them.

More/New ideas:
Any good plan that is shared in this discussion, I will add it to this post.

Okay so that time lock mechanism is dope and I'd love to do that. Multi sig wallet is great to pair with that as well and making a wallet for your kid/s also fun. I'm probably going to make a super elaborate treasure map for my kids and they have to work together to figure it out. Maybe tell them each a different story while they're still young and keep telling them over and over and they all come together like that ending scene in thr movie thr pacifier. Idk it woild be super fun. Also pretty risky tho like whay if they just lose thr map etc lol. Probs not going to do that anyways. But it sure sounds fun dont it?!