E258 Bitcoin Estate Planning for 2 of 3 Multisig

<p>As the <a href="https://btcguide.github.io/quorum">default recommended</a> multisig quorum, there must be lots of  2 of 3 multisig holders out there. So let’s make sure your 2 of 3 multisig also works as well upon your death as it does while you’re alive.</p> <p>Three things to think about: who has your third key; access to keys 1 and 2 upon death; and consider a 2 of 4 multisig.</p> <h2>Who has your third key?</h2> <p><img class="aligncenter size-medium wp-image-41804" src= "https://anthonyspark.com/wp-content/uploads/2022/03/Who-has-your-third-key-300x169.jpg" alt="Who has your third key?" width="300" height="169" /></p> <p>Your best candidates are a custody service, a professional executor or lawyer (who also understands bitcoin custody and opsec), or family and friends.</p> <p>Ideally, this keyholder will have an ongoing understanding of both bitcoin custody and security, as well as probate and estates. This means someone will keep up to date as technology and best practices evolve, and not just a fleeting understanding.</p> <p>We discussed in depth “who should hold keys as part of your bitcoin inheritance plan?” in E256.</p> <h2>Access to keys 1 or 2 upon death</h2> <p><img class="aligncenter size-medium wp-image-41805" src= "https://anthonyspark.com/wp-content/uploads/2022/03/Access-to-keys-1-or-2-upon-death-300x169.jpg" alt="Access to keys 1 or 2 upon death" width="300" height= "169" /></p> <p>Presumably, while you’re alive you have sole access to keys 1 and 2. So how will your 3rd keyholder get access to one of your keys upon your death?</p> <p>One of the benefits of multisig is that you don’t need such extreme security measures. Why? Because even someone gets one of your keys, they’d still need to get another key to be able to access your bitcoin.</p> <p>So how to make sure a second keys is available upon your death? A few ideas:</p> <ol> <li>Share a full seed phrase with a family or friend, who would share with your 3rd keyholder upon your death</li> <li>Give a hardware wallet clone to family/friend,