This is something I've worked on for some time but I can't work out a solid solution.
Assume (these are the MUSTS in the criteria)
I can store crypto securely offline. I have backups that are secured as well.
I manage and trade crypto for a group of ten people and we each own a portion.
We will hold up to 20 tokens, making changes depending on solid news.
They entrust me with ALL private keys so trades can be executed quickly and so they can go about their daily lives
For simplicity, we only use 1 wallet per currency and pool all money together.
Everyone owns different percentages and each token's volatility is unique.
How do I safely distribute these assets in the event of my own death?
My two solutions that just have slight flaws to them
1. Entrust a law firm/bank to send a sealed letter (containing the master password) to a specific member of the group upon receipt of the death certificate. The law firm doesn't know what they have, they just have instructions with an envelope with a tamper proof seal. Assume this would work
Issues: You can't entrust one single person as the backup key recipient because it hypothetically incentivizes them to kill the primary key holder and run off. So that's no good.
2. Law-Firm method above but each person would receive their equal share via that mailed card. So the assets are equally divided in cold storage. This means if we have 10 currencies and 10 people, we will have 100 wallets. Every trade executed will require 10+ trades to redistribute as each wallet will have to be accessed. Yikes.
Issues: Moving crypto and executing trades will be near impossible with 100+ wallets. Selling 1 currency for another means up to 40 transfers every single time you want to get money into the exchange, then out. Quickly exiting If your country suddenly bans crypto, you're pretty much ****ed trying to get 200 wallets emptied and back to dollar.
Has anybody thought this out and figured out a real solution to utilize a trusted third party?
Assume (these are the MUSTS in the criteria)
I can store crypto securely offline. I have backups that are secured as well.
I manage and trade crypto for a group of ten people and we each own a portion.
We will hold up to 20 tokens, making changes depending on solid news.
They entrust me with ALL private keys so trades can be executed quickly and so they can go about their daily lives
For simplicity, we only use 1 wallet per currency and pool all money together.
Everyone owns different percentages and each token's volatility is unique.
How do I safely distribute these assets in the event of my own death?
My two solutions that just have slight flaws to them
1. Entrust a law firm/bank to send a sealed letter (containing the master password) to a specific member of the group upon receipt of the death certificate. The law firm doesn't know what they have, they just have instructions with an envelope with a tamper proof seal. Assume this would work
Issues: You can't entrust one single person as the backup key recipient because it hypothetically incentivizes them to kill the primary key holder and run off. So that's no good.
2. Law-Firm method above but each person would receive their equal share via that mailed card. So the assets are equally divided in cold storage. This means if we have 10 currencies and 10 people, we will have 100 wallets. Every trade executed will require 10+ trades to redistribute as each wallet will have to be accessed. Yikes.
Issues: Moving crypto and executing trades will be near impossible with 100+ wallets. Selling 1 currency for another means up to 40 transfers every single time you want to get money into the exchange, then out. Quickly exiting If your country suddenly bans crypto, you're pretty much ****ed trying to get 200 wallets emptied and back to dollar.
Has anybody thought this out and figured out a real solution to utilize a trusted third party?