Over the years many top investors in bitcoin and other crypto assets has lost their lifetime fortunes because they failed to disclose most of their investments and other crypto assets to their loved once due to reasons best known to them, however every investors is mandated to have a next of kin that knew of their Bitcoin investment and it secret phase so that in case of any eventuality, no body is praying for bad things but if something we never prayed for happens, who can access our asset (funds) ?
It Is a crucial question we should be asking our self.
I know a guy in my area that suddenly became mentally deranged and that guy was a huge investor in bitcoin investment but funny enough nobody knows the pass phrase of any of his wallet or any of his crypto assets,and his family was in bitter need of money for his treatment and welfare and non can access his funds because they are ignorant of any of these, so I kept wondering if an investor can invest in bitcoin for a long term plan without disclosing to any of family members?
Is it proper sharing your pass phrase to your family members?
Whether to share your seed phrase with family is in my opinion dependant on two things: trust and planning. Indiscriminately distributing your passphrase to all members of your family might be quite dangerous since not all of them realize the need to keep it safe. On the other side, omitting to share it outside of death is the reverse situation where your prosperity also deceases with you. The middle ground is establishing a system of inheritance. An example is that others keep a multisig wallet where 2 out of 3 keys are needed, and they give one of the keys to each other, a trusted family member and perhaps a lawyer or safety deposit box. Some can hand write and store the keys to their seed phrases in a will with clear instructions to keep it locked up and only release it when it is needed.
The major consideration is that Bitcoin is based on sovereign money, but sovereignty, which is not foresighted, can lead to a situation that may cost your love ones. Right, so I do think that every serious investor should have at least one trusted person who can be informated that there are assets, and how to get them back at some point. This does not imply necessarily giving them all the seed at once, but there must at least be a definite, safe scheme.