971 sats \ 7 replies \ @Bitcoiner1 27 May 2023 \ on: Do you think about bitcoin inheritance? bitcoin
It's a very interesting topic.
In my opinion, there are two path to follow.
- If you want to secure your btc for you.
- If you want to secure the access of your btc for the ones that you love.
I think you can't follow the two paths at the same time.
PATH 1, your prioritie is to secure you access whilst you are a live. No trusting any one else.
PATH 2, the priority is to create a system where your love ones could access YOUR funds during your live and after. This means that you have to TRUST them.
Using a time lock sounds good but you will be not able to access your funds until that time... So, if you need some sats before, you won't be able to get them.
I think I read recently about a method where the timelock can be turned off and on by the creator during his or her lifetime, but can only be accessed by the beneficiaries on terms set by the timelock.
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Yes, there is such an option
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Actually, there is a way to achieve both objectives: by using multisig (to protect your bitcoin day-to-day) combined with timelocks (to plan your inheritance).
Recently, we launched a service utilizing the above kind of setup to provide non-KYC and safe inheritance planning for Bitcoiners.
If you are interested, you can read more about it here: https://nunchuk.io/blog/introducing-the-honey-badger-wallet
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Could you please clarify if the inheritance key is locked with a time lock (for example, locked until 2080), how the ones receiving the btc would access the funds before the time lock (before 2080)?
They will need one key from the owner of the funds and the platform key? 🤔
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Sure.
To withdraw the funds before the timelock has expired, the beneficiary would need to have access to at least 2 of the owner's keys (since it's a 2-of-4 multisig wallet). In addition, he will also need a copy of the wallet configuration file. The platform key will not co-sign any transaction not initiated by the owner before the timelock has expired.
However, 2080 is a very long timelock. We don't recommend setting a timelock so far out in the future.
What we do recommend to our users is to use a "rolling short timelock" approach: Set a timelock not too far in the future, such as 2 years from today. Then you can review the inheritance plan every year and push the date back if necessary. To help remind you, we start sending email notifications as the timelock is about to expire, starting at the 6-month mark.
This approach allows you to lengthen the time your inheritance can be claimed as needed, while guarding against long-term uncertainties. If something unfortunate happens to Nunchuk, you as the owner can use your own keys to move your funds to a new wallet. If something unfortunate happens to you, your beneficiaries can claim the inheritance quickly without having to wait many years (this probably fits what you are thinking better).
Let me know if the above makes sense.
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Using a time lock sounds good but you will be not able to access your funds until that time
In our solution, the timelock only applies to the inheritance key.
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OP_VAULT solves this
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