Showing your seed phrase or wallet password to your next of kin while your alive

[Lamtel]

First of all I use this medium to acknowledge the organisers and programmers of this forum/site, indeed they have done immensely great job by uniting individuals of various countries in the globe to share their respective ideas.

I have been reading a lot of post and replies where people debates on the safest way to store up Bitcoin seed phrase, some folks said writing it on paper and storing the paper in a secret places is the safest means there by preventing Cyber attacks while other folks said storing the seed phrase in a special hard ware device is the best way.

I was thinking about all those ideas and I came up with a thought that leads to questions.
1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

[_act_]

It is not safe to let your next of kin know your seed phrase, but you can give him clue about bitcoin, seed phrase, passphrase and other important things, and also let him know where the important information is so that when anything happen, the next of kin can know what to do and where to go. You do not even need to let the person know that it is about bitcoin, when it happens, he will find out himself. I prefer multisig, shamir or time/height lock.

[Odusko]

I was thinking about all those ideas and I came up with a thought that leads to questions.
1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

Handing over control of your wallet to a growing kid most especially when you have a lot of assets in that wallet put both the fund and the kid at risk, because he will lack the proper decipline to handle such responsibility, we may act in other way that we won't be putting our live savings at risk. Instead handing over money to our kids, why not give the value instead because with value their can properly handle the pressure that comes with money as inheritance.

[hmbdofficial]

To me I will say it’s safe to do that in the case of death asset can be accessed. but then again it all depends on how trustworthy the next of kin is. we knw who is more likely to defraud us after living together for a particular time.

Im looking at it in way that if our next of kin dont knw our seed phrase or private keys then if death happens that funds will be seating in that wallet which is a bigger lost to the family.

[Hypnotizer]

I was thinking about all those ideas and I came up with a thought that leads to questions.
1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

If you want to give your next of kin the inheritance of your coins, you don’t need to show them your seed phrase or your password, there are various way you can pass your coins to your children’s or next of kin in the event of dead. To prevent against the next of kin defrauding you is why you don’t need to show them your wallet password or seed phrase rather you use  one out of the inheritance protocol you find best.


Below are some of the bitcoin inheritance proposal posted on this forum, you can check them out:
https://bitcointalk.org/index.php?topic=5185907.msg52497274#msg52497274

https://bitcointalk.org/index.php?topic=5512560.msg64615711#msg64615711

https://bitcointalk.org/index.php?topic=5558966.0

Edit: I found this very simple option for inheritance from BlackHatCoiner reply on one of those thread.

Apologies if it is already mentioned, but what's the problem with the following inheritance plan?

Alice want her son, Bob, to inherit her bitcoin when she passes away. She creates him a bitcoin wallet and signs a transaction transferring many of her coins to one of his addresses, while choosing a locktime far into the future. She hands him over the seed phrase of the new wallet and the transaction in raw file and in physical format (QR).

• If she hasn't passed away before that time, she can invalidate the transaction by spending the coins to herself, and redo the same process to recreate another transaction.
• If she has passed away, then her son can just broadcast the transaction.

What's the problem this way? Seems like the simplest option to my mind.

[Antona]

This is the core dilemma of inheritance planning, if you give full access, you're trusting them completely some use time-locked transactions or instructions with a lawyer, you have to weigh the risk of betrayal against the risk of your coins being lost forever

[Gozie51]

I was thinking about all those ideas and I came up with a thought that leads to questions.
1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

Well I believe the greater risk is to die without disclosing your crypto assets, phrase or traces to get to them.

What the fear is, is trust. People already include next of kin in their fiat bank account (although you have to go through further processes before you can get access to the account in case of death like death certificate etc) but the point is they are included.

Before crypto, there have been betrayal and how were such issues settled? They were settled traditionally (of which with different traditional means) including gathering of kins men and relatives to find solution to the matter. When such is not resolved, some people have resorted to going to court and court did their justice. So if you are still alive and your trusted executor betrays you, it is easier to follow up because you are alive and you are a subject of living witness and evidence. It is easier when you alive and you are betrayed than if you are dead and you didn't leave a will or your will isn't followed to the letters.

[bitzizzix]

You can give it to a close relative you truly trust and who deserves it if it happens. If you have a spouse or children, you can give them your wallet password if you wish. After you die, they can continue to use your Bitcoin, but you must provide a way for them to use it, either by converting it or continuing it, in a detailed and easy-to-understand manner.
However, it would be better if you already have children and a wife to educate them about Bitcoin so that when death comes unexpectedly, as no one can predict death, and when it does, they will be good successors after we have properly educated them about Bitcoin, how to invest, patience, and discipline in doing so.

[rat03gopoh]

but you can give him clue about bitcoin, seed phrase, passphrase and other important things, and also let him know where the important information is so that when anything happen, the next of kin can know what to do and where to go.

I honestly did this; I knew what I was doing. I involved at least three relatives (including my wife) who didn't know each other, each with their own responsibility to access all of my assets. Of course, I don't recommend this method to anyone who has trust issues and hasn't considered many factors.

[Outhue]

There will likely be a problem if you plan to hand over your seed phrase to your next of kin after death, something could go wrong with the person you entrust to carry out the passing of the seed phrase, this is why I always support the passing of recovery seed when one is still alive.

As for the question been asked, it is better to always have something left for yourself, plan to give some Bitcoin to your next of kin for example, but make sure you reserve something for yourself, just like you said death is inevitable, no one knows when your time will come. Even after my father died he still have some money in the bank account, he made sure that it was never part of the Will.

Just imagine if he was supposed to live even longer, and he shared everything, what will he be using to sustain himself? Always have two recovery seed, if all you have is 2BTC, you can hand over 70% of the Bitcoin to your next of kin, live with the rest till you are gone.

[purple_sparkles]

I love my closest relatives, but I’m not ready to trust all of them with passwords and seed phrases for electronic wallets. Partly because some of them, due to their age, wouldn’t even understand how all of this works, and they could also accidentally tell someone about it who shouldn’t know. As for those who are already independent and capable of building their own lives, they should figure out their own finances and savings themselves. That’s why my seed phrase is known to only one person who is closest to me, and only because they are also well-versed in this whole topic.

[m2017]

First of all I use this medium to acknowledge the organisers and programmers of this forum/site, indeed they have done immensely great job by uniting individuals of various countries in the globe to share their respective ideas.

"The organisers and programmers of this forum/site" is Satoshi, who, as I assume you know, is known for much more than just that.

You could express your gratitude to the administration for their support of this forum; without them, bitcointalk would not exist.

I have been reading a lot of post and replies where people debates on the safest way to store up Bitcoin seed phrase, some folks said writing it on paper and storing the paper in a secret places is the safest means there by preventing Cyber attacks while other folks said storing the seed phrase in a special hard ware device is the best way.

It is best to combine these 2 methods: offline storage of the seed phrase on a physical storage medium (paper, cardboard, metal - any material on which information can be stored for a long time) + use of a hardware wallet.

I was thinking about all those ideas and I came up with a thought that leads to questions.
1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

I'm sorry to disappoint you, but death is inevitable.

You should only transfer the seed phrase to people you're willing to give your savings in bitcoin to. Whether it's in your lifetime or not, it will happen anyway, right?

I think you could do it this way: split bitcoins (diversification) and have several seed phrases. Keep seed phrase №1 \ №2 for yourself, and transfer seed phrase №3 to a relative.

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

If they try to deceive you, you'll keep some of your savings, which you might still need.

Therefore, seed phrase №3 should contain a small amount of bitcoins (as a test) to verify the trustworthiness of your relatives to whom you would like to bequeath a bitcoin inheritance. Perhaps this will help you change your mind and "bequeath" bitcoins to other people.

[kotajikikox]

1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

Let him know how to get it but don't just plainly give it to him. But make sure that he can find where you are storing it in case.

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

I'd split it into two so I'd know if he got the first part when I am already alive and he can't get all of my wealth if he wanted to be greedy already.

[Maus0728]

Maybe go for a lawyer and add it to your will, that way, there is no premature introduction that you have a stash of bitcoins and any kind of ill intent is avoided. Another thing that I would add is having an instruction on how to get the bitcoin or how they can trade it so that they do not have any problems when the time comes that they have to deal with it. If you really trust the people around you though, I say that you should go for it but to be honest, this is not the best thing to do, this is an extension of your privacy, treat it like your bank account or social media accounts.

[OcTradism]

1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

If you don't love them, don't trust them, keep your bitcoins for yourself and be ready that if you die, your bitcoin will be lost forever and be a part of estimation on lost bitcoins that is very hot discussion with time.

If you love them, but you think that they are not matured enough, don't tell them about this. You can give them such information when you feel they're matured enough already, but there is risk of accidents which you can not control when it comes to you.

If you are fearful that they can steal your bitcoins when you're still alive, let's split your bitcoin fund to different wallets, and only give them information about wallets that you are afford to lose.

[snowpega]

<.....>
I have been reading a lot of post and replies where people debates on the safest way to store up Bitcoin seed phrase, some folks said writing it on paper and storing the paper in a secret places is the safest means there by preventing Cyber attacks while other folks said storing the seed phrase in a special hard ware device is the best way.

I was thinking about all those ideas and I came up with a thought that leads to questions.
1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

Well, everyone has their own way to save their seed phrase or wallet keys that they think keeps them secure from bad actors. Yeah, it is an obvious thing; whatever we are earning, some day it will be someone else's in the form of inheritance, right? So, why don't we start to share information about Bitcoin and the crypto space with our progeny? We should keep them ready for what we have by giving them the best knowledge about this space. 

This is our property, and for sure our property is for our progeny. It will be the best act of ours if we educate them as an early priority because we know the nuance of this matter and how evilish people are living in this space to trap us and to steal our online property. Educating them as an early priority will help them understand how they can stay safe from these bad actors' hands. This is my point of view. What do you think about it?

[pawanjain]

First of all I use this medium to acknowledge the organisers and programmers of this forum/site, indeed they have done immensely great job by uniting individuals of various countries in the globe to share their respective ideas.

I have been reading a lot of post and replies where people debates on the safest way to store up Bitcoin seed phrase, some folks said writing it on paper and storing the paper in a secret places is the safest means there by preventing Cyber attacks while other folks said storing the seed phrase in a special hard ware device is the best way.

I was thinking about all those ideas and I came up with a thought that leads to questions.
1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

No, it is not a wise idea to give our seed phrase to anybody directly because we cannot really trust anyone these days.
As you say, death is inevitable and this is why we have to figure out a way to inherit our coins to our closed ones.
I haven't done that yet but thinking to create a treasure hunt kinda way to get access to the coins.

May be leave a hint here and there so that our closed one can figure out what it is about.
We also have the option of creating a timelock mail that will be sent on a specific date which will tell the person about the location and how to access the coins.
Then we can reschedule that mail right before it is about to be triggered in case we are still alive.

[Odogwu-Blockchain]

1. Is it good to give our seed phrase or wallet password to our next of kin while we are alive since death is inevitable?

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

Yes, if you truly trust the person to be your next of kin, maybe could be your son, daughter, wife, husband or relative whosoever, i will advise you show them your seed phrase only on this condition, that they will not know how to use the the seed phrase until you are gone. And if they eventually steal your money while you are alive, you punish them for doing that while you create new wallet for yourself only.

For myself, i can only give my seed phrase to my children who hasnt know anything about crypto, when they grow older, i teach them how to use it, but can only withdraw it until i am gone, depends on how i train my children.

[Marvelockg]

2. If the answer to the first question is Yes, what then happens to us if the next of kin defraud us of our hard earn wealth while we're alive?

Before you reveal your sead phrase to a third party even if the person is your next of kin, there should be a level of trust whereby you're sure that they are not going to defraud you no matter what they know about the quantity of asset you're holding.

It's not like you can't show your seed phrase to a third party oh, you can let him know you own bitcoin but it's not advisable you exposed the quantity of bitcoin you're holding.

[Sticky Bomb]

Apologies if it is already mentioned, but what's the problem with the following inheritance plan?

Alice want her son, Bob, to inherit her bitcoin when she passes away. She creates him a bitcoin wallet and signs a transaction transferring many of her coins to one of his addresses, while choosing a locktime far into the future. She hands him over the seed phrase of the new wallet and the transaction in raw file and in physical format (QR).

• If she hasn't passed away before that time, she can invalidate the transaction by spending the coins to herself, and redo the same process to recreate another transaction.
• If she has passed away, then her son can just broadcast the transaction.

What's the problem this way? Seems like the simplest option to my mind.

I like this idea, but the Alice in the description still has the responsibility of keeping the seed phrases of Bob's wallet safe for her son in a metallic sheet to make it durable and resistant to natural occurrences like fire and flood, then inform Bob of where he can find it at her demise. Leaving the seed phrase in Bob's hands may result in him misplacing or compromising the credentials and the bitcoin would either be lost or received by the wrong person if she eventually didn't make it before that locktime elapses.