Bitkey Wallet Introduces Bitcoin Inheritance Feature

Jack Dorsey’s company, Block, has introduced a cryptocurrency inheritance feature in the Bitkey hardware wallet.

Planning for the future of your bitcoin? Pass it on with Bitkey’s new inheritance feature. It’s built directly into the Bitkey wallet to make transferring your bitcoin to loved ones simple and secure.

— Simple setup, no bitcoin experience required
— Maintain control until your… pic.twitter.com/X2prSdtczT

— Bitkey (@BitkeyOfficial) February 26, 2025

The developers noted that in traditional financial instruments, this process is regulated: it is sufficient to designate beneficiaries, and assets automatically transfer to them upon the owner’s death.

“Bitcoin doesn’t work that way. Or at least, it hasn’t until now. Passing on the legal right to coins to your friends and family through a will is one thing, but ensuring they actually receive the assets is quite another,” the team emphasized.

One can use the services of an exchange or another centralized intermediary for storing and transferring keys. However, the process of setting up inheritance can require extensive documentation and may take up to a year in some cases.

Another option is to store data independently on hardware devices, on paper, or in another form. This requires writing detailed instructions for heirs, who will need certain technical knowledge. Information leakage could lead to theft, the developers stressed.

They aimed to eliminate reliance on centralized counterparts and the need for beneficiaries to understand blockchain fundamentals.

The new Bitkey option allows one to designate an heir without the need to transfer PIN codes or seed phrases during their lifetime. Both parties receive part of an encrypted key. One fragment allows unlocking the second in the event of death.

However, after an inheritance claim is submitted, a six-month “security period” is initiated. During this time, the coin owner will receive notifications about the request. This measure protects against unauthorized access to assets if the owner is still alive.

After the period ends, the beneficiary can transfer the funds to their Bitkey account. Only then can they view the balance.

“Simplifying bitcoin use and making it harder to lose has been part of Bitkey’s proposition from the start. With inheritance, we’ve brought this spirit to life in a way that allows you and your loved ones to bypass what we consider unnecessary complexities in passing on your coins,” the developers concluded.

As reported in ForkLog, in the article, how to use Web3 tools to bequeath and transfer your assets to heirs.