Crypto Recovery Planning
Over 4 million Bitcoin are estimated to be lost forever - many because owners died without sharing access. Don't let your crypto become inaccessible.
Unlike banks, there's no "forgot password" for crypto. If your seed phrase is lost and no one knows it, the crypto is gone forever.
Self-Recovery Planning
Multiple Backups
- Primary backup at home (fireproof safe)
- Secondary backup in different location
- Consider bank safe deposit box
- Metal backups survive fire and flood
Redundant Storage
- Don't rely on single hardware wallet
- Seed phrase can restore on any compatible wallet
- Keep backup hardware wallet initialized
Before adding significant funds, test recovery. Reset device, restore from seed, verify same addresses generate. Better to find problems with small amounts.
Inheritance Planning
The Challenge
- Your family may not understand crypto
- Security vs. accessibility tradeoff
- Need to protect from theft while alive
- Need to ensure access when you're gone
Options for Inheritance
1. Letter of Instructions
- Document what you own and where
- Step-by-step recovery instructions
- Store with will or trusted attorney
- Don't include seed phrase in letter
2. Trusted Person + Separate Location
- Give seed phrase to trusted family member
- Use passphrase stored separately
- Neither can access alone
- Combined, they can recover funds
3. Shamir's Secret Sharing
- Split seed into multiple parts (e.g., 3-of-5)
- Distribute parts to different people/locations
- Need threshold number to recover
- Trezor Model T supports this
4. Professional Services
- Casa - Multisig with inheritance protocol
- Unchained Capital - Collaborative custody
- Combines security with recovery options
Documentation Checklist
| Document | Contents | Location |
|---|---|---|
| Asset list | What crypto, approximate value | With will |
| Instructions | How to access, step-by-step | With will |
| Seed phrase | Recovery words | Separate secure location |
| Passphrase | 25th word (if used) | Different location |
| PIN/passwords | Device access codes | With instructions |
Teaching Your Heirs
Consider educating family members:
- Basic crypto concepts
- How wallets work
- How to use hardware wallet
- How to sell or transfer crypto
- Security awareness (scam prevention)
Even if you've explained verbally, write everything down. In times of grief, detailed written instructions are invaluable.
Dead Man's Switch
Automated solutions for worst-case scenarios:
- Google Inactive Account Manager
- Send encrypted email after inactivity period
- Smart contract-based solutions (experimental)
- Requires regular "check-in" to prevent trigger
What NOT to Do
- Don't put seed phrase in regular will (becomes public)
- Don't email seed phrase to anyone
- Don't store all info in one place
- Don't rely on memory alone
- Don't assume you'll have time to prepare
Sample Inheritance Plan
- Will mentions: Crypto assets exist, see separate letter
- Letter with attorney: Asset list, instructions, location hints
- Safe deposit box: Seed phrase on metal backup
- Home safe: Passphrase + hardware wallet
- Trusted person: Knows locations of above
Nobody expects tragedy. Set up your recovery plan today. It takes a few hours and ensures your crypto isn't lost forever.