https://ift.tt/T0L3ir9 Right Now!? Trustlessly Sending Bitcoin After You Die

I’ve been trying for months and months now (after hearing a rumor about this around the time Taproot was released) to figure out how to arrange an inheritance for in case I die unexpectedly.

tldr: I have no idea how to practically do it yet and I offer no insight into the technicals, but talk about how (I think) it’s conceptually possible to perform right now. HERE’S THE STRATEGY!

Source: Saylor Academy: [https://ift.tt/dg4PebD

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The Concept:

• Using “2 of 2 multisig”

• Person 1 = The Parent who is planning their inheritance to their child

• Person 2 = The Child who will be receiving the inheritance

• Person 1 has both keys (#1 & #2)

• Person 2 only has one key (#2)

• Person 1 drafts a transaction to send the entire contents of their wallet to Person 2’s personal wallet which Person 1 does not have the private key for (so Person 2 has 100% custody of the target address)

• In this drafted transaction, Person 1 sets an “nLocktime” of 1 year

• Person 1 immediately signs this transaction with key #1, but not key #2

— Scenario 1: Person 1 Dies

• After 1 year has passed, Person 2 is able to sign the transaction with key #2 and receive the funds to their own address which they have full control over

— Scenario 2: Person 1 is Still Living in 1 Year

• After 6-11 months have passed (right before the nLocktime is over), Person 1 uses both key #1 and key #2 to send the entire contents of their wallet to a new address… perhaps another 2 of 2 multisig to repeat this same process over again, but with the nLocktime refreshing for another year… or they can send it whereever they want since they have both keys.

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Risks:

• What if you set a transaction fee that’s too low?.. It seems once you pass away you can’t sign with your private key for a higher fee.

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Benefits:

• It gives the “parent” full control of the funds with the option to change their mind at any point in time while they’re alive. They aren’t committing to locking the funds away for the rest of their life without the ability to spend if they wanted or needed to.

• There is a trustless path to bequeath Bitcoin to your family without needing to give them full control of your funds now, nor do you need their private keys. Everyone has their own private keys and don’t need to trust anyone else.

• You can do all this without a 3rd party to rely on to interpret your will the way you desire, nor any chance for a 3rd party (such as a government) to intervene or delay the transmission of your inheritance.

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Let me know what you think! It’s a pretty cool idea. It took me a while to wrap my head around how it would work. And it’s going to take me even longer to figure out actually how to script this type of thing. Unless Sparrow Wallet has this timelock feature I can play around with.

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