While no one wants to think about their untimely demise (is it ever timely?) you do your family and your heirs a great dis-service if you do not leave SPECIFIC guidance as to what you are doing with your crypto as well as where it is. Are all you passwords written down? Seed words? What follows is a primer into how I’ve thought about it.
As I mentioned in a comment on Securing your Crypto, password managers like Last Pass are great systems as you can create wonderfully secure passwords with it. But what if the unforeseen happens and you get hit by that proverbial beer truck, or you’re “loved” to death by the women’s Russian volleyball team? Will your heirs know where to look? Will they know what to do? Is that Ledger in your sock drawer? In a safe? What’s the combination to the safe? Have you staked a coin for 3 years for a 100% increase in tokens? Are you staking on a local computer? What exchanges do you use? Are there assets up there? I could go on, but you get the drift. You simply cant expect the uninformed to step in and sort things out. So what do you do? LASTPASS.
Password managers like Last Pass serve multiple functions. They autolog you into web sites like banking, exchanges, or even Amazon when the web based app is opened on your browser, but it can do so much more with a feature call Secure Notes. Secure Notes (SN) is not an auto login system but it allows you to keep any number of specific and discreet notes on any topic you choose. I use these to manage my crypto holdings and my heirs will thank me for it.
First, Last Pass has a secure note for each and every wallet I have. The SN has the wallet name, contains the token it holds, the seed words or backup files to regenerate the wallet, any passwords, private keys, or authenticator codes to re-establish Googles Authenticator should your cell phone die with you.
Additionally I have one SN called a Crypto Summary. It has, line by line, and in alphabetical order, what coin I have (token name), How many I have, where it is (cell phone, Pc, etc) what it’s doing (staking, earning interest, etc.) and when its available (if its locked for interest).
So between these two methods, my heirs can figure out what I have, where I have it, and what’s its doing.
So the holy grail is contained in your password manager. That password needs to be long and does not need to be necessarily complex (longer is more important). Its just as secure to use a 24 character phrase that sticks in your mind that’s easy to remember as it is an 8 character complex string that you can’t. If you’re a terrible typist like me, you can name a file somewhere on your PC with the password so you can cut and paste it in instead of typing it. They call that hidden in plain site.
I hope I’ve provoked a thought here. Its so important. They say 4 million BTC have been lost due to lost keys, etc. Don’t add to it.