HOW DO WE TRANSFER BITCOIN WEALTH TO HEIRS AND THE NEXT GENERATION

[Agbamoni]

This thought have been bothering me for a while and I feel we can discuss it here. Many people that are building their Bitcoin portfolio are doing it to also save for the coming generation.

I’m imagining my imaginary children in this imaginary scenario opening up my crypto portfolio and realizing how much of a crypto investor I was with all my bitcoins for their eyes to see.

However, how this wealth will be transferred to the heirs and the next generation and how this wealth will be preserved without being lost or causing problems still remain unclear.

TBH some people might find it hard to get a lawyer, make a will, or pay an agency for planning their stuff when it comes to their crypto. I understand that this solution isn't perfect, because a sneaky family member or a lawyer who knows about crypto could take off with your private key for the bitcoins, and no one else would even know that these crypto assets exist.

Maybe using centralized exchanges could help. You could have a shared account with your family or set up a beneficiary with the exchange that holds your bitcoin investments. This way, if you have multiple people who inherit your stuff, you can split your assets between different exchanges with this feature. You could also make a shared account that moves the assets to the heir's account after a certain amount of time. This could prevent any fights or problems among the heirs.

[sokani]

I think we should begin to think like adults now. As giving ideas and then pointing the flaws out of them are not going to help the OP. And to be honest I do not think OP is going to read all the replies

Discussions like this is not only for the op but for anyone that's opening to learning because it's an opportunity to learn something. Sometimes from the subject, it could be something that you already knew but someone else might come up with a different perspective that's entirely new or help to spark up an idea in you.

But sometimes those middlemen turn up as the biggest scammers and they do not do as they are agreed. So, to avoid that, buy a Hardware wallet and give it to that middleman and tell him it is a USB which contains my last message for my kids.

I just don't like the idea of bringing a middle man into the equation. If the middle man will not claim the funds for himself, he might be bribed by one of the heirs. Making a live video and giving out clear instructions on how the Bitcoin should be shared amongst the heirs and also directions on to claim the funds is actually a nice idea.

[Ayers]

Initially, I recorded all my crypto wallet information in a physical notebook. My intention is to educate my future generations about cryptocurrencies like Bitcoin, ensuring that when they possess sufficient knowledge, they can access and recover the assets I've set aside for them. It seems like the most effective method to pass on my crypto assets to the next generation.

I believe it is the right approach to record all information related to our wallets in a physical note book, and I have also chosen the same method to secure my keys, because I don't prefer to save such crucial information on electronic devices.

Moreover, it is essential to provide our children with solid understanding of Bitcoin and its underlying technology so that they can explore optimum benefits from these digital assets that we will pass down to them. This ground will enable them to take optimum advantages of this digital assets that we intend to pass on to them.

I have considered out on writing or printing my PK on a paper or be written up but i do have that kind of fear that i might really loss it or when the time comes that ink would definitely be faded out on the time that you might
passed away.  This is why i have decided that i do make out back ups on my own USB with having that having a lock and not just on single flashdrive but rather having 3 as sort of back up. For now then im telling them about the basic principles of crypto and on how to make recoveries or on how private key works on unlocking a certain wallet. So far they do understood it out specially with my wife which it isnt really that hard to understand since you are really just that explaining them about on how to access and on how to make out conversions to real fiat. So that on the time that you would be passing away then those coins wont really be put up
to waste since they could really be able to access it out and make use of those funds that you had been working so hard. For now im not stressing out myself on what would be my ending but rather im focusing on
accumulating for for the sake of my family in terms of the money that they could be able to make use off specially into my children. We know that life is unpredictable and there's no way that we could tell
on when we would be passing away.

Coincidentally, I am also using this method. While I know this isn't the safest solution for many people, it's the safest for me and I haven't had any problems in years. I also record information such as seed phrase, password, private key...in the notebook. But that is really dangerous because the paper is quite fragile and easily destroyed, I then bought 3 USBs for backup to ensure the safety of my information. Of course, teaching my loved ones how to use them is indispensable. But I want to add a little more about how to store our phrase. We should take the time to check USB periodically because we all know electronic devices have a lifespan and can fail at any time. Periodic inspection and timely replacement are very important.
By the way, I also just tested them and they are ok  .

[Roseline492]

TBH some people might find it hard to get a lawyer, make a will, or pay an agency for planning their stuff when it comes to their crypto. I understand that this solution isn't perfect, because a sneaky family member or a lawyer who knows about crypto could take off with your private key for the bitcoins, and no one else would even know that these crypto assets exist.

You have a point but I disagree with you on the aspect you mentioned that what if a man could not get a lawyer, I don't really no if you meant getting a good lawyer or affording a lawyer, which ever way you meant, I no most lawyer are not trustworthy but there are also good ones that can handle your will very well, so let's not reason it only in one angle, if I most say there are so many people that has family lawyers which they trust very well, most times people are always the cause of there problem choosing a random lawyer whom they don't no too well and a last either the lawyer scam them or tamper with their will and at last we generalize it to all the lawyers forgetting that in most cases we are actually the cause.

In times of willing Bitcoin to our children one could actually open each Bitcoin accounts for each of the children instead of sharing from one centered account because you don't no if some would like to hold there Bitcoin for something there.

[adultcrypto]

It seems that you mostly understood what I was saying, yet the way that you summarize what I said likely needs some clarification.  So, it seems that I was describing a context in which the heirs might lack some technical expertise in terms of figuring out where the coins might be held and/or the various ways to access the bitcoin - especially if there might have had been some technical issues or even problems figuring out what the deceased bitcoin holder was attempting to communicate to his/her heirs.

So there could be a variety of ways in which a deceased bitcoin holder might attempt to set things up prior to his/her death that might involve instructions and also it might involve a list of technical experts (or even businesses) who the deceased person trusts will charge a fair price in order to help the heirs without being a dishonest actor (and sure these things cannot be 100% known, but it is possible that the deceased person may know some people who he believes would be helpful and may even get paid to help.. and such persons do not need to be hackers, but surely having some decently high level technical skills might not hurt when it comes to figuring out something like putting together all the keys or maybe even getting into the deceased persons personal computer and other devices in which some contemporary files and communications and even accounts might be better found out.  We could have several kinds of accounts and there could be traces of those accounts in our e-mails or in our webpage histories, and sometimes family members might not have enough understanding to even realize that the deceased person had 10-20 different accounts and various kinds of wallets that had bitcoins and maybe shitcoins and some other digital assets on them... that could add up to hundreds of thousands or even millions that the dumb heirs might not have had known or been able to figure out on their own and without the help of the bitcoin (or crypto) technical expert (who you referred to as a hacker).

Please pardon me for the wrong choice of words. The right world would have been "Technical expert. I did not intend to quote you verbatim but to give credit to you that you already addressed a situation where the heirs might need the services of a third party in the course of accessing their inheritance.

TBH some people might find it hard to get a lawyer, make a will, or pay an agency for planning their stuff when it comes to their crypto. I understand that this solution isn't perfect, because a sneaky family member or a lawyer who knows about crypto could take off with your private key for the bitcoins, and no one else would even know that these crypto assets exist.

You have a point but I disagree with you on the aspect you mentioned that what if a man could not get a lawyer, I don't really no if you meant getting a good lawyer or affording a lawyer, which ever way you meant, I no most lawyer are not trustworthy but there are also good ones that can handle your will very well, so let's not reason it only in one angle, if I most say there are so many people that has family lawyers which they trust very well, most times people are always the cause of there problem choosing a random lawyer whom they don't no too well and a last either the lawyer scam them or tamper with their will and at last we generalize it to all the lawyers forgetting that in most cases we are actually the cause.

In times of willing Bitcoin to our children one could actually open each Bitcoin accounts for each of the children instead of sharing from one centered account because you don't no if some would like to hold there Bitcoin for something there.

In some parts of Africa, people have the habit of not keeping a family lawyer and that is very bad. Keeping a family lawyer will enable you build some kind of trust over the years. What is the essence of having a lawyer you cannot trust? I think nn getting a lawyer involved for Bitcoin asset, certain aspect of the information may not have to be given to the law firm. In a situation that you decide to give the lawyer all the information, then the children much be informed that you have asset in the custody of the lawyer for the sake of transparency.

[red4slash]

Coincidentally, I am also using this method. While I know this isn't the safest solution for many people, it's the safest for me and I haven't had any problems in years. I also record information such as seed phrase, password, private key...in the notebook. But that is really dangerous because the paper is quite fragile and easily destroyed, I then bought 3 USBs for backup to ensure the safety of my information. Of course, teaching my loved ones how to use them is indispensable. But I want to add a little more about how to store our phrase. We should take the time to check USB periodically because we all know electronic devices have a lifespan and can fail at any time. Periodic inspection and timely replacement are very important.
By the way, I also just tested them and they are ok  .

That's one option that can be done but like you said not everyone can accept that as a safe way including me because I still feel that storing in a USB sometimes we have to prepare for the worst where it could be corrupted which makes the data lost so even though it can be done but there must be a backup of the seed that we created.
I personally still like the old-fashioned way where I still write in my notebook and store it in a place that only I can access it (At least for now) but I have told my closest family about my bitcoin storage just for access I still hold back on it and it's enough just for myself for now.

[Macoach]

Coincidentally, I am also using this method. While I know this isn't the safest solution for many people, it's the safest for me and I haven't had any problems in years.

Buddy this is one of the worst idea in my own perspective and i wouldnt advise anyone to do so or even bring it up such a suggestion. What you had to misplace the drive or perhaps it got damaged by fall or accident. How would you pass it on to your heirs?

[Ale88]

This thought have been bothering me for a while and I feel we can discuss it here. Many people that are building their Bitcoin portfolio are doing it to also save for the coming generation. However, how this wealth will be transferred to the heirs and the next generation and how this wealth will be preserved without being lost or causing problems still remain unclear.

I understand for other tangible assets, a WILL can be written to be revealed when the time is right. But for Bitcoin, I don't know how this can be done as it may require revealing the secrete codes of the wallets or storage device. Is there any other way this can be done?

I think that when you reach a certain age you should openly talk with your sons (and whoever would inherit something from you) about what you have and what it is. In some cases people don't explain, they die, and then there are people who go crazy because they need to put several pieces together with the risk to miss or lose something. Of course I'm talking about people with more money than the average Joe. Same goes with bitcoin: you have them? Make sure your kids know what bitcoin is and how to use it before the get scammed after you pass away.

[Roseline492]

Coincidentally, I am also using this method. While I know this isn't the safest solution for many people, it's the safest for me and I haven't had any problems in years. I also record information such as seed phrase, password, private key...in the notebook. But that is really dangerous because the paper is quite fragile and easily destroyed, I then bought 3 USBs for backup to ensure the safety of my information. Of course, teaching my loved ones how to use them is indispensable. But I want to add a little more about how to store our phrase. We should take the time to check USB periodically because we all know electronic devices have a lifespan and can fail at any time. Periodic inspection and timely replacement are very important.
By the way, I also just tested them and they are ok   .

That's one option that can be done but like you said not everyone can accept that as a safe way including me because I still feel that storing in a USB sometimes we have to prepare for the worst where it could be corrupted which makes the data lost so even though it can be done but there must be a backup of the seed that we created.
I personally still like the old-fashioned way where I still write in my notebook and store it in a place that only I can access it (At least for now) but I have told my closest family about my bitcoin storage just for access I still hold back on it and it's enough just for myself for now.

Truth be told USB is not reliable in saving data because it could be corrupted anytime, to me USB is only good for a back up plan, were as you have actually save the data on other source then using the usb as other alternative way if should incase you loss the other one but cannot be fully reliable. In times of writing it down on the notebook is very good because in note book you don't worry about corrupted data, sometimes is also good saving a screenshot of your Bitcoin phrase and sending a copy to your wife as a back up plan.

[JayJuanGee]

Coincidentally, I am also using this method. While I know this isn't the safest solution for many people, it's the safest for me and I haven't had any problems in years. I also record information such as seed phrase, password, private key...in the notebook. But that is really dangerous because the paper is quite fragile and easily destroyed, I then bought 3 USBs for backup to ensure the safety of my information. Of course, teaching my loved ones how to use them is indispensable. But I want to add a little more about how to store our phrase. We should take the time to check USB periodically because we all know electronic devices have a lifespan and can fail at any time. Periodic inspection and timely replacement are very important.
By the way, I also just tested them and they are ok   .

That's one option that can be done but like you said not everyone can accept that as a safe way including me because I still feel that storing in a USB sometimes we have to prepare for the worst where it could be corrupted which makes the data lost so even though it can be done but there must be a backup of the seed that we created.
I personally still like the old-fashioned way where I still write in my notebook and store it in a place that only I can access it (At least for now) but I have told my closest family about my bitcoin storage just for access I still hold back on it and it's enough just for myself for now.

You make some good points red4slash, but I still feel like I need to repeat some of my concerns about the notebook being a potential single point of failure, which may be lessened by maintaining more than one notebook with the same contents, and yeah, I know that is likely a pain in the ass, but you could also have three with one off site that you do not update as much, but you would still have some active and latest updates in the two main ones.

Your point about the electronic device being problematic does en up getting somewhat addressed by having the backup keys.. to make it less vulnerable if it were handed down by itself without the seeds or whatever technology that wallet is using for its backups.

sometimes is also good saving a screenshot of your Bitcoin phrase and sending a copy to your wife as a back up plan.

Holy shit this recommendation is dumb, irresponsible and contrary to best (or even basically better) security practices..

In other words:  

1) Don't be taking screen shots of your private keys..

and worse yet

2) don't send such private keys (or back up seeds or anything else related to the private keys) electronically to someone who you want to have such information.  

There are better ways/pracitces.

That conduct might not end up 100% causing you to quickly lose your coins, but it is really not a good practice and quite a few historical bitcoiners have been separated from their coins based on various forms of trying to digitize their private key information and using various unsecure methods of transmitting such private keys, similar to your dumb recommendation.  

Have I called you dumb enough?  hahahahaha maybe? maybe not.

You need to try to come up with something better, and surely it is not a very good idea to be recommending bad practices and there are at least two bad practices that you highlighted as your recommendation.

By the way, if you or anyone else has engaged in this kind of behavior historically (either one of them.. you don't necessarily need both in order for you to have had made your private keys overly vulnerable) , and if you still have the coins in such wallet(s), you most likely need to move those coins relatively quickly (if not even before finishing reading this post) to new wallets and don't make the same two mistakes again in terms of your securing the private keys of your new wallet that you make.

Take the steps that I suggest and/or you will thank me later, if you do not figure out some other potentially silly way to lose your coins by the employment of similar kinds of really bad practices/recommendations...

You might even want to delete that part of your post and hope that no one actually ends up following some variation of what you are recommending.

[Agbamoni]

sometimes is also good saving a screenshot of your Bitcoin phrase and sending a copy to your wife as a back up plan.

Holy shit this recommendation is dumb, irresponsible and contrary to best (or even basically better) security practices..

Haha am totally shocked as you are, i wouldn't think of such

Many people that are building their Bitcoin portfolio are doing it to also save for the coming generation. However, how this wealth will be transferred to the heirs and the next generation and how this wealth will be preserved without being lost or causing problems still remain unclear.

OP i have been so interested in this post, thank you for putting something together, especially because it’s such a dark topic but so important! The hindsight of preparing your finances for post death is something that shouldn't be ignored especially for secured funds like Bitcoin. Ever since i have been doing my own research and I found out about Google's Inactive Account Manager. Perhaps this could help.

1. You need to setup what happens to your account and data when it becomes inactive for a period of up to 18 months.
2. Make sure you apply for auto responders as it send email to the specific heirs when its due time (One good thing is it can be updated frequently because you don't know when its your time)
3. The email should tell them how to get your real things like your laptop, phone, wallet, and stuff like that. Then, tell them about a locked file saved on your computer or USB drive. This file has more info about how to get to your crypto. To keep it safe, you can use a free tool called 7-Zip to make your file secret and archived
4. Wish them farewell and hope they will be impressed with the amount you have accumulated so far in your portfolio.

For better understanding of the google inactive account manager read this source article here

[Patrol69]

This thought have been bothering me for a while and I feel we can discuss it here. Many people that are building their Bitcoin portfolio are doing it to also save for the coming generation. However, how this wealth will be transferred to the heirs and the next generation and how this wealth will be preserved without being lost or causing problems still remain unclear.

I understand for other tangible assets, a WILL can be written to be revealed when the time is right. But for Bitcoin, I don't know how this can be done as it may require revealing the secrete codes of the wallets or storage device. Is there any other way this can be done?

I think that when you reach a certain age you should openly talk with your sons (and whoever would inherit something from you) about what you have and what it is. In some cases people don't explain, they die, and then there are people who go crazy because they need to put several pieces together with the risk to miss or lose something. Of course I'm talking about people with more money than the average Joe. Same goes with bitcoin: you have them? Make sure your kids know what bitcoin is and how to use it before the get scammed after you pass away.

People die at any time, if we wait for a certain age and if that age does not come in our lifetime how will we openly discuss Bitcoin with our children. Since death is inevitable and death can happen at any time, we should discuss bitcoin openly with children early on rather than waiting for a certain age. We just have to wait until the children are adults and when discussing Bitcoin with them won't have a negative impact on their lives. If Bitcoin is openly discussed with children in advance then surely Bitcoin will reach the next generation, and if we wait for a certain age limit and if that age does not come in our lifetime then our Bitcoin will never reach the next generation and our Bitcoin  Amulya will then remain in the wallet as a currency.

[Afnan_faizah]

I always print all my wallet data into papers so my family will be able access my wallet after I die. I think something like this must become something that common for any cryptocurrency users. in the past I only save all my wallet data in my smartphone but after it is broken I am so panic but fortunately I remember that I also save those data in a flash disk.

[JayJuanGee]

I always print all my wallet data into papers so my family will be able access my wallet after I die. I think something like this must become something that common for any cryptocurrency users. in the past I only save all my wallet data in my smartphone but after it is broken I am so panic but fortunately I remember that I also save those data in a flash disk.

You have likely created another security hole if you save your data on a computer and you print it out..including the printer may save images, too... so at least two points of failure.

Making photo copies may surely have some issues too.. but sure each of us has to balance between convenience and considering how BIG of a security hole that we might have created through the ways that we are creating our digital documents and the extent to which harddrives on printers matter in terms of information that could end up getting found 10 or 20 years down the road, and then your data (bitcoin private keys) ends up getting compromised.

[LDL]

I always print all my wallet data into papers so my family will be able access my wallet after I die. I think something like this must become something that common for any cryptocurrency users. in the past I only save all my wallet data in my smartphone but after it is broken I am so panic but fortunately I remember that I also save those data in a flash disk.

Human death is certain and no one can avoid the guarantee of this death. But no one can say for sure how long Bitcoin will exist in our world. But one thing that is very important is how we will pass on the bitcoins we are currently saving to our next generation. We are also concerned about whether our next generation will be interested in learning about the uses and importance of Bitcoin.
But the backup phase of the wallet I choose to pass on my accumulated bitcoins to my next generation is written down in several places in a notebook. But if I die due to any reason then my close relatives can retrieve it and get access to the wallet. Also I have screenshotted the security system of my wallet and saved it in google drive and sent it to my wife with that gmail.

[xSkylarx]

This is a really interesting topic, but if I do base it on my life and not think of others, I tend to give the keys to my family or something creative, like if ever something happens to me, open this box, etc., but again, that is only applicable to me as that is really the purpose that they can still open it when the time is right. But for others, that is really a problem that even for myself, I dont have a concrete answer, but I thought the will would still be your choice as that will contain all of your properties and assets, and let's say a ledger that has Bitcoin will then be given to the beneficiary.

[JayJuanGee]

I always print all my wallet data into papers so my family will be able access my wallet after I die. I think something like this must become something that common for any cryptocurrency users. in the past I only save all my wallet data in my smartphone but after it is broken I am so panic but fortunately I remember that I also save those data in a flash disk.

Human death is certain and no one can avoid the guarantee of this death. But no one can say for sure how long Bitcoin will exist in our world. But one thing that is very important is how we will pass on the bitcoins we are currently saving to our next generation. We are also concerned about whether our next generation will be interested in learning about the uses and importance of Bitcoin.
But the backup phase of the wallet I choose to pass on my accumulated bitcoins to my next generation is written down in several places in a notebook. But if I die due to any reason then my close relatives can retrieve it and get access to the wallet. Also I have screenshotted the security system of my wallet and saved it in google drive and sent it to my wife with that gmail.

Another dumbie with bad advice and advice that is contrary to what people should be doing, even if they believe it is convenient... Yeah, it's convenient until all of your coins end up disappearing and you cannot figure out why.

Refer to my earlier post in which I respond to the same advice given by Roseline492.

[AprilioMP]

By using a multisig wallet.
It can be a way of managing assets simultaneously with multiple keys.
Another way is to provide private keys to those who are entitled to inherit bitcoin assets and some other crypto assets.

The idea of transferring bitcoin assets to heirs is very good in my opinion and even better if it is planned before we die. Later, their heirs can use it as well as we use it well.
Before providing private keys that can access bitcoin assets, teach their heirs ways not to lose them such as how to secure them.

[Litzki1990]

I always print all my wallet data into papers so my family will be able access my wallet after I die. I think something like this must become something that common for any cryptocurrency users. in the past I only save all my wallet data in my smartphone but after it is broken I am so panic but fortunately I remember that I also save those data in a flash disk.

Keeping a note of all your account information in the ledger is a very important task, even if you think about additional security. If we think that it is safe to store various important account information online, then we are wrong because the device may be stolen or the device may be destroyed due to system problems or the important information is stored in a place where you have password. If you forget, but you can't access your account later even if you want, so it is the job of a conscious user to save your necessary information online as well as note it in the account. 

Bitcoin will not be passed on to the next generation if you only keep your important account information in a ledger, if someone in your family has no idea about Bitcoin then they will think Bitcoin is a priceless currency. So apart from keeping the important wallet information in the ledger, one must have a good discussion about Bitcoin with the family members so that they understand the value of Bitcoin.

[Thehallows]

You just said a will can be written, WILL contains everything you have, properties, money and so on, if money can be included why not Bitcoin? Anything can be WILL to your offspring.

Yeah, anything can be WILL to your offspring, but adding bitcoin demands that you have a certain degree of trust and understanding with the lawyer managing your WILL
Your bitcoin assets are under the jurisdiction of anyone who knows your bitcoin wallet's seed phrase. Anytime he wants, he may exchange it.

What I would do if I were to include bitcoin to the WILL of my offspring, is to purchase a hardware wallet, give it to the lawyer, and give my children access to the hardware wallet's password. My children should meet the lawyer whenever I am no longer alive because I will specify in the WILL how the bitcoin in the hardware wallet is to be shared

You would be making a mistake if I'm your lawyer I just steal a little of that BTC wealth of yours . For me lawyers ia a no no ill just pass my private diary of to him or I'll just whisper my private key to him with in my dying  breath