Multisig inheritance setups let you pass Bitcoin to heirs without single points of failure. Learn the tools, the setup process, and what to avoid.
The biggest threat to inherited Bitcoin is not hackers — it is your heirs not knowing it exists or how to access it. More Bitcoin has been lost to death and confusion than to theft. Multisig inheritance is the gold standard solution: a setup where your Bitcoin requires multiple keys to move, and your heirs receive the keys and instructions after you die — without you having to trust a single third party with your funds while you are alive.
This guide covers how multisig inheritance works, which tools support it, and how to set up a plan your heirs can actually execute.
Inheriting traditional financial assets is straightforward. Your broker or bank knows who you are, has your account listed in a database, and can verify your heirs through a court process. Bitcoin has none of that.
Your Bitcoin is controlled by private keys — long cryptographic strings that look like gibberish. If your heirs do not have those keys and know how to use them, the Bitcoin is gone. Forever. There is no customer support line, no account recovery, no probate court that can unlock a hardware wallet.
The challenges:
A good inheritance plan solves all four problems.
Multisig (multi-signature) requires M-of-N keys to authorize a Bitcoin transaction. A common inheritance setup is 2-of-3: three keys exist, any two can move the funds.
Here is how a 2-of-3 inheritance structure typically works:
While you are alive, you control Key 1 and Key 2 and can always move your Bitcoin.
When you die, your heirs use Key 2 + Key 3 together to claim the funds. You are not involved. No single key alone is enough to steal the Bitcoin.
This is fundamentally more secure than leaving a seed phrase in a will — because a single seed phrase is all someone needs to empty your wallet.
Casa is the most complete managed multisig inheritance service available. Their Gold plan ($250/year) provides a 2-of-3 multisig setup where Casa holds one key. Their Diamond plan ($5,000/year) adds a bitcoin security expert on call and handles the inheritance paperwork directly with your estate attorney.
Casa's inheritance protocol:
For most Bitcoin holders who want a managed solution without deep technical expertise, Casa is the best option.
Unchained offers collaborative custody with a strong inheritance workflow. Their 2-of-3 multisig keeps you in control while alive, with Unchained holding one key and serving as a guided recovery partner for heirs.
Nunchuk is a multisig wallet app (iOS, Android, desktop) with built-in inheritance features. You can configure a time-delayed inheritance key that activates after a set period of inactivity. If you stop signing transactions for 12 months (or another configured period), the inheritance key unlocks and allows designated heirs to claim funds.
This is a self-custody solution — no third party holds keys. It requires more technical setup but gives maximum control.
Liana is an open-source Bitcoin wallet built specifically for time-locked inheritance and recovery. Using Bitcoin script timelocks, Liana lets you configure a recovery key that can only move funds after a defined period. A designated heir (who holds the recovery key) can claim funds after you have been inactive for the configured time.
Key advantage: Liana is entirely trustless. No company holds keys. The timelock is enforced by the Bitcoin protocol itself.
Cypherock X1 uses Shamir's Secret Sharing to split your seed into five shards. Any two shards can reconstruct the key. You distribute shards to trusted family members, attorneys, or safe locations. No single shard is enough to access your Bitcoin — but any two together work.
This is hardware-based key splitting without requiring a multisig coordinator.
Foundation Passport is a hardware wallet that works well in multisig inheritance setups with other tools (Nunchuk, Specter, Sparrow). It does not have native inheritance features, but its open-source design and air-gapped operation make it a trusted component of self-custody inheritance plans.
Bitcoin Keeper is an inheritance-focused wallet app that manages multisig vaults with configurable inheritance protocols. It includes a dead man's switch feature and guided heir onboarding.
If you want to set up Bitcoin inheritance without a managed service, here is the process:
Use Sparrow Wallet (desktop), Specter Desktop, or Nunchuk to create a 2-of-3 multisig wallet. You need three hardware wallets — Coldcard, Foundation Passport, and Trezor are a common combination (using devices from different manufacturers reduces supply chain risk).
Write a clear, plain-language document that explains:
Store this document in a sealed envelope with your will, or leave instructions with your estate attorney.
No single person should have more than one key.
Before storing large amounts, verify your heirs can actually execute the recovery. Do a test run: pretend you are unavailable, have a trusted heir attempt to move a small amount using keys 2 and 3. Document any confusion and improve your instructions.
Update your instructions as software changes. Confirm key storage locations are still intact. Verify your designated third-party holder still has the key and knows what to do with it.
Wills become public record after probate. A seed phrase in a public document means anyone can steal your Bitcoin after you die (and possibly before, if someone accesses the will early).
A single seed phrase or hardware wallet stored somewhere "safe" is one discovery away from being stolen, or one location disaster (fire, flood) from being lost forever.
Leaving Bitcoin on an exchange and telling your heirs your login credentials is not an inheritance plan. Exchanges can freeze accounts, go bankrupt, or require in-person identity verification that is impossible after death. Exchanges have gone bankrupt (FTX, Celsius) and frozen estates.
Even tech-savvy heirs may not know what a hardware wallet is or how to use one. Explicit, idiot-proof instructions are essential. Write them assuming your heir has never touched Bitcoin before.
Ledger Recover (/inheritance/ledger-recover) is a seed phrase backup service that splits your key into three shards held by Ledger, Coincover, and EscrowTech. In theory, if you die, your heirs can recover the key through an identity verification process.
The controversy: Ledger Recover requires your seed phrase to leave the device, which purists argue breaks the core security model of hardware wallets. If the backup infrastructure is compromised, your keys are exposed.
Ledger Recover is convenient. For serious Bitcoin holders, a multisig solution is more secure.
In the US, inherited Bitcoin receives a stepped-up cost basis at the date of death. If you bought Bitcoin at $10,000 and it is worth $90,000 when you die, your heir's cost basis is $90,000. They owe no capital gains on the $80,000 appreciation that occurred during your lifetime.
This makes Bitcoin an exceptionally efficient asset to pass to heirs. The unrealized gains you accumulated over decades disappear at death for tax purposes.
Consult a Bitcoin-aware estate attorney before setting up your plan. Tax law and estate planning rules vary by state and country.
Any amount worth keeping. If you have $10,000 in Bitcoin, that is worth planning for. If you have $100,000+, a formal setup with professional guidance is justified.
Yes — at minimum, tell a trusted family member that Bitcoin exists and that there are instructions for accessing it after your death. The location of the instructions is more important than the specific setup details.
You can, but they may not understand the technical requirements. Pamela Morgan and Jeff Vandrew Jr specialize in Bitcoin estate planning. If you use a traditional attorney, bring this guide and explain the key custody model to them.
A good multisig setup is designed to survive third-party failure. With Casa, you hold two of the three keys — so even if Casa disappears, you can still move your funds using your own two keys. Never use a service where you do not hold the majority of keys.
For most Bitcoin holders, the right starting point is one of these:
Simple, managed: Sign up for Casa Gold. Pay $250/year for a fully guided 2-of-3 multisig setup with inheritance support.
Intermediate, self-custody: Set up Nunchuk or Sparrow with three hardware wallets, write detailed heir instructions, and store keys in separate locations.
Maximum security: Use Liana for timelock-based trustless inheritance, combined with a Bitcoin estate planning attorney.
The worst plan is no plan. For more tools, browse our full directory of Bitcoin inheritance planning resources and see Best Bitcoin Inheritance Planning Tools 2026.
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