Options for passing on crypto

These are the main ways to structure access after death, with their trade-offs. There is no single right answer: the right choice depends on your situation, your assets and who you trust. Whatever mechanism you choose, it must be documented, understood and tested.

Sealed envelope

The seed phrase in a sealed envelope in a safe or safe-deposit box, its location documented in a non-secret inventory. Simple; cheap; a single point of loss; if the envelope is opened early, the secret is exposed. Works best when one or two people are the only ones who ever need access.

If you use this approach, write the seed phrase on a single sheet, sign and number the seals, and keep no photographs of it anywhere. Record only the envelope’s location in the non-secret estate inventory, not its contents. Decide who is told the envelope exists, and check once a year that the seals are intact and the handwriting is still readable; ink fades and paper degrades over the decades an inheritance plan may span.

Trusted person

A copy with someone you trust, who knows what it is and when it may be used. Convenient; depends entirely on that person’s reliability and judgement, and on their survival. A plan that relies on one person is as strong as that person’s security habits.

Make the arrangement explicit: agree in writing when the copy may be used, and name who should receive it if that person dies or becomes incapacitated first. Consider a second copy with someone else, so a single accident cannot remove the only backup. Confirm once a year that the person still has it, still understands it and is still willing to hold it.

Multisig

Several independent keys with a threshold (e.g. 2-of-3). No single compromise loses everything; heirs must find the keys and understand the quorum, and the wallet’s descriptors and derivation information matter, not just the keys. More moving parts to document, but it removes the single point of failure.

Common estate arrangements are 2-of-3 with one key held by a notary or lawyer, or 2-of-3 where two heirs each keep a separate key. Whichever split you choose, document the wallet policy and descriptors (the technical definition of how the wallet is structured) not just the keys themselves, and rehearse a real spending transaction once while you are alive. The multisig guide explains how these wallets work and what the heirs need.

Timelocks and inheritance keys

Bitcoin mechanisms that release or allow recovery after a delay. Powerful; technical; the estate must understand and document them correctly, and a wrong assumption about how they behave is hard to undo.

Weigh the lock duration against the estate’s likely timeline: a delay of many years can outlast the settlement itself, and some exchanges and custodians do not honour these mechanisms at all. Test with a nominal amount, and record the exact unlock parameters (block height or date) in the non-secret inventory, because they are needed long after the lock is set.

Provider features

Some hardware wallets and custody providers offer inheritance features. Read the terms carefully: they are product claims, and marketing statements like “bypass probate” are not legal advice. Check what the provider actually controls, what happens if the provider changes its terms, and whether the feature survives the provider itself.

Registering a beneficiary or legatee usually requires that person’s personal data, and the provider’s own continuity matters: think about what happens if it is acquired, goes out of business or silently changes the feature. Keep the confirmation of your arrangement with your estate documents. Note that most such features release access to the account, they do not replace the legal transfer of the assets.

How to choose

Whatever you choose: it must be findable (documented in a non-secret inventory), understandable (someone can act on it without you), and tested (rehearse it once while you are alive). Then review it periodically, yearly or after major changes. The best structure is the one a competent person could follow without you present.

Match the structure to your situation: a single heir who is not technically minded may be well served by a simple envelope or a provider feature, while several heirs, larger amounts or cross-border elements may point toward multisig or professional involvement. Once a structure is in place, ask a lawyer or notary to review it once, so the practical arrangement and the legal reality of your country line up.