What will happen to you Bitcoin, when you die?

[Itz-prisigold]

Bitcoin is not like our banks that your money can actually be passed down to a family member when you die. Bitcoin doesn’t work that way, if your family members don’t not know that you’re holding Bitcoin and if they don’t have your private keys or recovery data, your coins may be inaccessible forever.

As an investor who is saving for the future, after spending years accumulating Bitcoin gradually, only for you to lose access to it after death. In such cases Bitcoin stays exactly the same, but the keys to access it is gone.

Two typical scenarios:

1. Bitcoin that is kept in a private wallet.

If you run your own wallet, then you have the full responsibility to keep your private keys or seed phrase safe. Without leaving a secure recovery plan, your family may never be able to get those coins. Also when it comes to Bitcoin, there’s nothing like support services which can actually assist to reset the wallet or to recover the money.

2. When your Bitcoin is stored in an exchange

If you have your Bitcoins on a centralized exchange, it is possible that your family can reach out to the exchange and follow its inheritance procedures. But however, this actually depends on the policies and legal requirements.

So now this brings me to this question: Is it possible to inherit bitcoins?

My answer will be yes. Bitcoins can be passed down to family or other beneficiaries, but we need to understand that having Bitcoin and arranging for someone to get access to it is two different things. Your family has to be aware of the existence of the Bitcoin, know how to get to it, and be legally entitled to the Bitcoin.

This question is goes to the community: What are the things a bitcoin holder can actually do?

This is my own opinion: Bitcoin holder shouldn’t add their seed phrase to a will or any other document that could be made public.

[Ashawowo(OS)]

Bitcoin is not like our banks that your money can actually be passed down to a family member when you die. Bitcoin doesn’t work that way, if your family members don’t not know that you’re holding Bitcoin and if they don’t have your private keys or recovery data, your coins may be inaccessible forever.

Bitcoin is even better, no unnecessary protocols for next of kin to reclaim your funds. You only need to tell them where you're preserving your keys with instruction on how to recover the wallet and claim their inheritance. It is very essential you've at least a trusted family member(preferrably your spouse) that knows about your holdings and where to find the keys. It is also very important to give your successors bitcoin education and ensure they can use it for themselves in your absence.

Bitcoin is easier to share among your successors ans you can distribute the coins in their respective wallets and label the seed phrases accordingly with respect to who gets which.

As an investor who is saving for the future, after spending years accumulating Bitcoin gradually, only for you to lose access to it after death. In such cases Bitcoin stays exactly the same, but the keys to access it is gone.

It is bad when no one knows about your bitcoin acquisition, it is always better a trusted insider knows. I don't like the idea of involving third parties like lawyers, it is better treated privately.

2. When your Bitcoin is stored in an exchange
If you have your Bitcoins on a centralized exchange, it is possible that your family can reach out to the exchange and follow its inheritance procedures. But however, this actually depends on the policies and legal requirements.

If the exchange declares collapses and declares bankruptcy before it is recovered, then your coins is gone as well. Coins kept in an exchange is as much your own as the exchange is operational and releases it when requested. If your people cannot access it, the motive of keeping it is defeated. Self-custody remains the best

[devouring-DARKNESS]

You can include your private key in your will so that the right person can inherit access to it but this requires alot of trust on the part of your will holders but they are also not required to know the content of your will until they are reading it, they don't have to read the private keys out, they can just include the location of the private key told privately to the person inheriting it.

You can also just decide to trust your family and make the location of your private key known to them before hand so that when something happens they can easily access your bitcoin, my father isn't a bitcoin holder but he has bank accounts and I have access to his ATM cards and their pins, I'm not degenerate enough to steal his money, not at this age.

[Perfectbaby]

They must necessarily add their recovery seed phrase into a Will but they can share it to someone they felt that they has so much trust on. Because adding bitcoin to Will can easily make their Lawyer either steal all their bitcoin after they noticed that real owner is dead, they can actually said that was the last transaction the owner asked them to execute after he might joined their accentors.
This is the reason why you must have at least someone to be trusted at your home (Family) that you can share your private information with.

[Sim_card]

They must necessarily add their recovery seed phrase into a Will but they can share it to someone they felt that they has so much trust on. Because adding bitcoin to Will can easily make their Lawyer either steal all their bitcoin after they noticed that real owner is dead, they can actually said that was the last transaction the owner asked them to execute after he might joined their accentors.
This is the reason why you must have at least someone to be trusted at your home (Family) that you can share your private information with.

If such is the case, you can use a multisig wallet where the lawyer can be with the seed phrase. Your wife and your eldest child will be with one key each. With this, the lawyer cannot steal your coins. Trust is the most important thing between your family and the family lawyer. However, you can also use time lock based on a certain time or a particular block height before your heir can spend the coins.

[The Founding Titan]

If such is the case, you can use a multisig wallet where the lawyer can be with the seed phrase. Your wife and your eldest child will be with one key each. With this, the lawyer cannot steal your coins. Trust is the most important thing between your family and the family lawyer. However, you can also use time lock based on a certain time or a particular block height before your heir can spend the coins.

I think more people need to start considering what will happen to their bitcoin if something happens to them, you idea makes sense but giving the the key to your wife and eldest child assumes they are the ones you plan on giving the coin to, a person can split their assets amongst their spouse and their children and the bitcoin can end up going to the youngest child, in that case giving the eldest child the key might not be the best idea, instead give one of the key to the person you want to inherit their coins and only to your wife and first child if you are planning on giving the coins to the first child or you will includes instructions on how the entire family will split the coins.