Planning for the unexpected is a critical part of self-custody. Without a clear inheritance strategy, your bitcoin could be permanently lost. Theya offers a secure and flexible way to build inheritance into your vault setup—without giving up control or compromising privacy.
Why Bitcoin inheritance matters
Bitcoin held in self-custody is protected by cryptographic keys. If those keys are lost, the bitcoin is unrecoverable. Unlike traditional assets, there’s no custodian or bank to petition for access. That makes inheritance planning essential for anyone managing long-term bitcoin wealth.
The risk of doing nothing
Many families never recover their loved one’s bitcoin because there was no plan in place. Even if a beneficiary discovers a key or device, they may not know what it is, how to use it, or how to safely access the funds. A single mistake can lead to irreversible loss.
Why premature access is also dangerous
Sharing full access to your bitcoin before passing away introduces its own set of risks:
A family member could lose or compromise the key
Accidental access could lead to unintentional transactions
A beneficiary may act alone and move funds without coordination
Additional parties may learn of the key and target the individual
Disputes can arise with no clear legal enforcement
Your inheritance strategy must balance access and security—without depending on perfect trust or technical skill.
Inheritance options: choosing the right model
Here are the three most common approaches to Bitcoin inheritance, along with their strengths and trade-offs:
Inheritance Model | Description | Pros | Cons |
Custodial beneficiary setup | Bitcoin is held by a third party (e.g., exchange or custodian) | Simple process, no key management needed by heirs | Requires full trust in custodian, not self-custody |
Manual multisig with family or friends | User manually creates multisig vault with family members as keyholders | Maintains control, no external provider | Complex, vulnerable to errors, no guidance or recovery support |
Theya collaborative multisig | User sets up 2-of-3 vault with self, a family member, and Theya as keyholder | Secure, user retains control, recovery guided by Theya | Requires beneficiary onboarding and guided handoff at time of claim |
Using Theya to set up collaborative inheritance
Theya supports a simple, secure multisig model ideal for inheritance:
Create a 2-of-3 vault with the following configuration:
Key 1: You (the owner)
Key 2: Your intended beneficiary (spouse, child, etc.)
Key 3: Theya (assists only during recovery events)
Communicate your intentions in your estate plan or will.
Ensure your beneficiary has a supported hardware device or mobile key.
If the unexpected occurs, your beneficiary and Theya can sign together to move the bitcoin—without waiting for or compromising your key.
Theya will never co-sign without completing a security verification and time delay process to prevent abuse. This ensures funds can only be moved in a legitimate, recoverable scenario.
Legal and tax considerations
Bitcoin inheritance is treated differently depending on your jurisdiction. In many countries, bitcoin is considered property and may be subject to estate or inheritance tax. Consult a tax professional to ensure your plan is compliant and that your heirs are not caught off guard.
Summary
Bitcoin inheritance requires thoughtful planning. Theya makes it possible to design a secure, non-custodial plan that eliminates the risks of premature access, loss, or confusion. Whether you’re managing family wealth or holding bitcoin across generations, your vault can adapt to your legacy goals.
📈 Get started with Theya
Set up your inheritance plan and safeguard your family’s future.
Visit business.theya.us to create an account or schedule a demo.
Disclaimer: Theya does not provide legal or tax advice. Users should consult a qualified professional when making estate planning decisions involving bitcoin or digital assets.