EASY BITCOIN INHERITANCE PLANNING: Simple Inheritance How-To with Casa

Summary

In this episode of the show, Natalie hosts Nick Newman, CEO and co-founder of Casa, to discuss the importance of setting up a Bitcoin inheritance plan. They walk through the simple and fast process of setting up Casa inheritance, emphasizing the need for secure access to Bitcoin after one's passing. The conversation covers the difference between a recipient and a beneficiary, the importance of planning for legal and tax implications, and the ease of revoking or changing access. The demonstration includes a step-by-step guide on how to invite a recipient, share a mobile key, and initiate a claim, highlighting the security measures in place.

Takeaways

• 💡 Importance of Bitcoin Inheritance: Many people don't consider inheritance plans for Bitcoin, but it's crucial to ensure family members can access it after your death.
• 🔑 Simple Setup: Casa's inheritance solution is designed to be easy, especially for non-technical family members, while maintaining robust security.
• 📱 Mobile-Based Multi-Signature Vaults: Casa uses a multisig system where the recipient can access the Bitcoin using only their phone, making it user-friendly.
• 🔐 Three-Key Vault Security: Casa's basic security setup requires 2 out of 3 keys to access Bitcoin, ensuring no single point of failure.
• 👥 Recipient vs. Beneficiary: In Casa’s system, recipients aren't traditional financial beneficiaries but trusted individuals who hold keys to help access the Bitcoin if the owner dies.
• 📧 Easy Recipient Setup: Users can invite a recipient by email, and once accepted, a secure link is created between their accounts.
• 🕒 Six-Month Claim Period: If a recipient tries to claim Bitcoin, the owner has six months to reject the claim. Casa notifies the owner monthly during this time.
• ⚖️ Legal and Tax Considerations: Casa handles the technical side of inheritance, but users should consult estate lawyers for tax and legal planning.
• ❌ Revoking Access: Owners can revoke a recipient's access at any time, which immediately disables their ability to claim the Bitcoin.
• 📜 Estate Planning Flexibility: Casa’s system allows users to set up different trusted recipients, such as executors or trustees, depending on their estate planning needs.

Q & A

Why is setting up an inheritance plan important for Bitcoin holders?

Setting up an inheritance plan is crucial for Bitcoin holders because it ensures that their Bitcoin is accessible by their family or designated recipients in the event of their death, maintaining the security of their assets both during their lifetime and after.

What is the difference between a recipient and a beneficiary in the context of Casa's inheritance plan?

In Casa's inheritance plan, a recipient is someone who is authorized to receive shared keys to access the Bitcoin in case of the account owner's death, whereas a beneficiary in traditional financial accounts is someone who is given direct access to the assets upon the account owner's death. With Casa, the focus is on ensuring the recipient has the necessary keys to access the self-custodied Bitcoin.

How does Casa ensure that the process of accessing Bitcoin after the account owner's death is secure?

Casa uses a multi-signature (multisig) setup where the account owner and the recipient(s) hold parts of the key needed to access the Bitcoin. This decentralizes the security and prevents a single point of failure. Additionally, Casa employs a waiting period and verification processes to ensure the rightful recipient accesses the Bitcoin after the owner's death.

What is the significance of the six-month waiting period after a claim is initiated in Casa's inheritance plan?

The six-month waiting period in Casa's inheritance plan allows the account owner to verify and cancel any unintended claims, ensuring that the Bitcoin is not accessed prematurely or fraudulently. It provides a buffer time to confirm the legitimacy of the claim and protect the owner's assets.

What is the role of enhanced verification in Casa's inheritance plan for US residents?

Enhanced verification is an optional feature for Casa Private Client members in the US. It involves additional personal identifying information and documentation to verify the account owner's death more quickly, reducing the waiting period for the recipient to access the Bitcoin after the owner's death.

How does the process of sharing the mobile key work in Casa's inheritance setup?

In Casa's inheritance setup, the account owner shares the mobile key with the recipient by generating a QR code. The recipient scans this QR code with their phone, which securely shares an encrypted version of the mobile key, enabling them to access the Bitcoin after the owner's death, provided they also have access to Casa's key.

Can the account owner revoke access to the Vault if they change their mind about the recipient?

Yes, the account owner can revoke access to the Vault at any time by using the 'revoke Vault access' option in the app. This instantly removes the recipient's ability to make claims or use any keys associated with the Vault.

What should Bitcoin holders consider regarding legal and tax implications when setting up an inheritance plan?

Bitcoin holders should consult with estate lawyers and financial planners to understand the legal and tax implications of their inheritance plan, including estate taxes and transfer taxes. This ensures that the Bitcoin is not only accessible but also legally compliant within their jurisdiction.

How does Casa's inheritance plan cater to non-technical recipients?

Casa's inheritance plan is designed to be user-friendly for non-technical recipients by simplifying the process to feel like using a normal banking app. The focus is on making the recovery of Bitcoin as easy as possible for the family, while still maintaining a robust level of security.

What is the minimum number of keys required for a three-key Vault setup in Casa's inheritance plan?

In a three-key Vault setup, the recipient needs two out of the three keys to access the Bitcoin. One key is held by the recipient (via the mobile key shared by the account owner), and the other is provided by Casa after the account owner's death.

Outlines

00:00

🔐 Introduction to Casa Inheritance Setup

In this segment, Natalie introduces the topic of setting up a Casa inheritance plan for Bitcoin with Nick Newman, CEO and co-founder of Casa. The importance of having an inheritance plan for Bitcoin is discussed, emphasizing the need to ensure that family members can access one's Bitcoin after death. Nick explains that Casa's inheritance plan is designed with non-technical family members in mind, aiming to make the process as user-friendly as possible, akin to using a banking app. The discussion highlights the significance of planning for Bitcoin security both during life and after death.

05:01

🔑 Step-by-Step Guide to Setting Up Casa Inheritance

Natalie demonstrates the process of setting up a Casa inheritance plan with the help of Sam Callahan, who plays the role of a recipient. The process begins with inviting a recipient via email and selecting the type of vault. It's explained that Casa does not hold the Bitcoin but rather one or more keys needed to access it. The segment details how to share a mobile key with the recipient through a QR code, which is then encrypted and stored on the recipient's phone. The video also touches on the optional enhanced verification process for US residents, which can speed up the process of accessing the keys after the account owner's death.

10:02

📱 Testing the Inheritance Claim Process

In this part, Natalie and Sam perform a test run to demonstrate how the inheritance claim process works. Natalie initiates a claim, which Sam attempts to access, triggering a six-month waiting period before the claim can be finalized. This period allows the account owner to cancel the claim if it was initiated in error. The video explains that Casa sends monthly notifications during this period to ensure the owner is aware of any pending claims. It also shows how to revoke access to the vault, instantly removing the recipient's ability to make claims or use keys.

15:02

🏦 Legal and Tax Implications of Bitcoin Inheritance

The final segment addresses the legal and tax implications of Bitcoin inheritance. Nick advises that while Casa helps with the technical aspect of ensuring Bitcoin accessibility after death, it's also crucial to consult with an estate lawyer to handle the legal and tax aspects. The discussion points out the importance of having a clear plan that complies with jurisdictional laws to avoid legal complications for the family. The video concludes with a reminder of the importance of inheritance planning and the availability of a promo for Casa services.

Keywords

💡Casa

Casa is a company that specializes in providing security solutions for Bitcoin storage, focusing on self-custody. In the context of the video, Casa is highlighted for its inheritance planning feature, which allows users to set up a plan ensuring that their Bitcoin can be accessed by designated recipients after their death. The video demonstrates how Casa's app can be used to invite a recipient and share encrypted keys, ensuring a secure and user-friendly process.

💡Inheritance Plan

An inheritance plan, as discussed in the video, is a strategy to ensure that one's assets, such as Bitcoin, are accessible by designated individuals after the owner's death. The video emphasizes the importance of setting up such a plan for Bitcoin holders who want to secure their digital assets for their loved ones. It illustrates the process through Casa's platform, where the user can invite a recipient and share necessary keys for accessing the Bitcoin.

💡Self-custody

Self-custody in the context of the video refers to the practice where individuals hold the private keys to their Bitcoin, giving them full control and ownership over their assets. The video underscores the significance of self-custody for Bitcoin inheritance planning, as it allows the owner to set up who can access the Bitcoin after their passing, differentiating it from traditional financial accounts where institutions manage the assets.

💡Multisig

Multisig, short for multi-signature, is a security feature where multiple keys are required to authorize a Bitcoin transaction. In the video, Casa uses a two-of-three multi-sig setup for inheritance planning, meaning two out of three keys are needed to access the Bitcoin. This provides a robust security measure while still allowing for the Bitcoin to be accessible by the designated recipient after the owner's death.

💡Recipient

In the video, a 'recipient' is the person designated to receive access to the Bitcoin in the event of the owner's death. Unlike a traditional beneficiary, a recipient in Casa's system does not have direct access to the assets but is provided with the necessary keys to access the Bitcoin. The video demonstrates how the owner can invite a recipient and share an encrypted mobile key with them.

💡Vault

A Vault in the context of the video refers to Casa's secure storage solution for Bitcoin, where the private keys are held. The video explains how the owner can set up an inheritance plan within their Vault, inviting a recipient to have access to the keys needed to unlock the Bitcoin after the owner's death. The Vault is part of Casa's multi-signature security system.

💡Mobile Key

The mobile key is one of the components of the multi-signature security system used by Casa. As shown in the video, the owner can share an encrypted version of their mobile key with the designated recipient. This key is used in conjunction with Casa's key to access the Bitcoin in the Vault, providing a layer of security and ease of use for the recipient.

💡Enhanced Verification

Enhanced verification, mentioned in the video, is an optional feature for Casa Private Client members in the US. It involves providing additional personal identifying information to Casa, which is used to verify the owner's death and subsequently enable the recipient to access the keys. This feature aims to provide an extra level of assurance for the inheritance process, reducing the handover period after the owner's death.

💡Estate Planning

Estate planning is the process of arranging for the disposal of one's assets after death. In the video, it is suggested that while setting up an inheritance plan for Bitcoin through Casa is crucial, it should be complemented with legal estate planning. This includes consulting with an estate lawyer to ensure that the Bitcoin inheritance adheres to the legal and tax requirements of the owner's jurisdiction.

💡Revocation

Revocation, as discussed in the video, is the ability of the owner to remove a recipient's access to the Vault at any time. This can be done through the Casa app by revoking the Vault access, which would prevent the recipient from making any claims on the Bitcoin. The video demonstrates this feature, showing how the owner can maintain control over their Bitcoin even after setting up an inheritance plan.

Highlights

Introduction to setting up Casa inheritance with CEO and co-founder Nick Newman.

Emphasizing the importance of an inheritance plan for Bitcoin security.

Discussing the increasing requests from customers concerned about family access to Bitcoin posthumously.

Explaining the difference between a recipient and a beneficiary in the context of Bitcoin inheritance.

Describing the Casa product design aimed at non-technical family members for ease of use.

Highlighting the security measures like multi-signature (multisig) for inheritance planning.

Demonstrating the step-by-step process of inviting a recipient to an inheritance plan.

Clarifying the role of Casa in the inheritance process and the concept of self-custody.

Explaining the optional enhanced verification process for US residents.

Sam Callahan joins as a volunteer to demonstrate the recipient's perspective.

Illustrating how to share the mobile key with the recipient through a QR code.

Discussing the significance of the six-month waiting period for claiming Bitcoin after the account owner's passing.

Providing instructions on how to reject a claim and the importance of regular notifications.

Mentioning the ability to revoke access and the flexibility of the inheritance plan.

Addressing the legal and tax implications of inheriting Bitcoin and the advice to consult an estate lawyer.

Encouraging viewers to set up an inheritance plan for Bitcoin and consider legal aspects.

Closing remarks and a promo for Casa services.

Transcripts

[Music]

welcome back to the show for another

howto episode here with me is CEO and

co-founder of Casa Nick Newman and we're

going to be setting up Casa inheritance

you're going to be surprised how easy

and fast this is Nick thank you for

joining me thank you Natalie really

excited to be doing this again okay so

first of all why is it so important to

set up an inheritance plan when it comes

to your Bitcoin well a lot of people

don't think about this right because

they're they're just thinking about how

do I make sure that my Bitcoin is secure

while I'm alive but especially as we

start to uh as people you know have

families they have kids they get married

then they start thinking oh I need to

make sure that my family who maybe isn't

as much of a Bitcoin uh like hardcore

bitcoiner as I am I need to make sure

that they can access this stuff too and

so we had we started to have this

request more and more from our customers

where they were saying I'm worried about

my family being able to access my

Bitcoin if I pass away and so this is a

a really important part of self- custody

you have to think about both your

Bitcoin security while you're in life

and then also your Bitcoin security um

in death and in case something happens

to you which feels a little morbid but

it's a part of everybody's life and so

planning ahead you know bitcoiners we we

plan and planning ahead for for your own

death as part of that and making sure

that your family can access your Bitcoin

is really important so before we go go

through the step-by-step process is

there anything people should know about

what they're going to be setting up with

maybe a family member a loved one a

friend what what should they need to

what should they know before they

actually set up an inheritance plan the

thing to know I mean you said this at

the beginning it's easier than people

think when we were designing this

product we really designed it for the

family not for the account owner we

designed it for the people who will be

recovering this Bitcoin in a worst case

scenario

and a lot of times those people are less

technical they're not as comfortable

using a bunch of Hardware wallets or

seed phrases and so we designed this to

be really easy for them in a way where

it just feels like you're using a normal

banking app from their perspective where

you're just using your phone and that's

all you need from a from a two of three

multi-key Vault perspective our basic

security level all you need is your

phone in order to access these um this

Bitcoin and we've built a lot of

security precautions around that using

multisig to make sure that that doesn't

open up a security hole for people but

the whole point is how do we make this

as easy as possible for the family while

maintaining this robust level of

security and so that's the thing to know

it's just um I think people think oh

this might be hard and hopefully you'll

agree after we show you it's actually

very easy for both you and your family

to set up all right well let's get get

right into it so I'm going to open up my

casa app and for this since this is an

inheritance plan um we're going to get a

Little Help From A a volunteer a

familiar face my fiance Sam Callahan's

going to be joining us and he's going to

record his screen so that you can see

what's going on in that um in that space

so I'm in my app right now and on the

screen is the is the pay tab but I'm

assuming you hit inheritance which is

the third tab yeah go on over to the

inheritance tab okay so let's click get

started now it's about inviting the

recipient so you're going to put in

Sam's email here and just invite him to

be the recipient for your account and

it'll give you some options on which

Vault you can actually choose down below

and we're just going to do the three key

Vault okay so I am typing

in Sam's address here

and so the thing to know just as you're

going through that to give a little

context of what a recipient is a

recipient's a little bit different from

a beneficiary so in a traditional

Financial account setup you you think

I've got like your fre or 401K you think

okay I've got a beneficiary for this

account and if I pass away that

financial institution is going to rename

this account in my beneficiaries name

and give them access to these assets

with c you're self- custody in the

Bitcoin so we can't actually it's not a

beneficiary situation where we give your

um family member direct access to the

assets all we can do is help ensure that

they have access to the number of keys

they need to then access the assets so

it's just a little bit of a different

scenario than you might be used to but

we do use that word recipient as

something that feels familiar but you

can tell it's a little different than a

traditional beneficiary right and just a

reminder when you're setting up multisig

multi- signature collaborative custody

Casa does not have your Bitcoin

basically they have one key out of three

or out of five so that when you go to

unlock your Bitcoin there are several

Keys you're decentralizing um the the

security component so there's no single

point of failure and when it comes to

inheritance planning you need to be able

to have someone access that that key or

multiple keys that you have with Casa so

that um you know you they can unlock the

Bitcoin whether it's your kids your your

loved ones so um I just placed Sam's

email in here I'm going to go to review

details and there's an ackowledgement

that you're going to read basically

saying that I'm electing Sam as my

recipient and what's important to note

is they cannot see my Vault balance I

can revoke their access at any time I

can reject a mistake and claim if they

go in there trying to you know access

the key when they're not supposed to and

they must keep the shared Keys secure

caas not not able to help access lost

keys so I'm going to send the invite

over to Sam and he should be getting an

email so when Sam gets this email what

it's going to say is hey uh you've been

named as a recipient for this person's

account do you accept this and then when

you accept it we're creating a link

between your two accounts on the back

end that says Sam is now authorized to

receive shared keys from you to help

maintain those keys like doing health

checks on the those keys which are a

really important part of self- custody

is making sure that those keys remain

healthy over your lifetime and so this

this link is basically allowing him to

help share pieces of your self- custody

setup which is the important part for

ensuring that inheritance will work

because we're basically giving him

access to some keys while in in a very

secure encrypted way while you are alive

and then we match that with the Casa key

if you pass away so that he doesn't have

a a threshold of keys needed to spend

Bitcoin before that event happens but

afterwards he does right um so a screen

popped up by the way that asks whether I

want to enable enhanced verification

which is optional for us residents um

what is that and should I click yes so

today we won't do that but what that is

is it is for Kasa Private Client members

only who live in the US

and this is basically an extra level of

verification that we will do to ensure

that um you actually passed away and

that we should enable Sam to access the

keys in your Vault and so the way that

works is instead of having a six-month

timer which is typically how we handle

that uh Handover period after you pass

away we have a manual verification by

our team where we will take in some

documents from you ahead of time that

help identify you and Sam so it's not

quite kyc but it is pii personal

identifying

information and then uh after you pass

away we can use that to actually verify

death certificates so for some people

this provides an extra level of comfort

if they are less private privacy

sensitive about Casa having access to

this info got it all right it's time to

bring in our awesome volunteer Hi Sam

yeah thanks for having me on hi Nick hi

Natalie um excited to figure out this

Bitcoin inheritance thing it's been a

problem for so long and I think Kasa has

really fixed it okay so Sam did you

receive that email yes I did and I uh

accepted it okay so now on the manage

inheritance screen it basically um says

that I can finish setup by hitting on

the shared Vault and then it asks if I

want to share the mobile key so do I tap

that and then all of a sudden a QR code

pop pops up yep so this is the main part

of setup here so you're going to share

the mobile key Sam's going to scan this

on your phone and when he scans that

it's going to share an encrypted version

of that mobile key to his

phone success and I got success in

confetti awesome confetti means you win

and you're all good and so for the three

key set up that's actually that's it

that's all you got to do because now the

person has this encrypted mobile key

saved on their phone and then they will

have access to the casa key after you

pass away and that gives them the two

out of three keys that are needed in

order to access the Bitcoin that's in

this Vault so it's a really simple

process takes a couple of minutes okay

so I went back to the inheritance H Tab

and now I see manage inheritance my

setup you see Sam with his email address

under my recipient with the BTC Vault 3

key and it says healthy and if I tap on

it you see that they have access to the

mobile key but let's just do a test run

okay let's say you know Sam's not in a

great mood we're in a big fight um he

wants to try to take my Bitcoin so why

don't you try to access that key

Sam all

right mobile

key okay so start Vault claim

clim okay so now my little healthy tab

went to Pink and it says claim initiated

so it says that basically Sam is trying

to claim my key and trying to use it so

I'm going to reject the

claim and if you didn't reject that

claim what would happen is on Sam's end

it shows hey this Vault will unlock on

this date which is 6 months from now and

at that six Monon time then it would

unlock he'd be able to see the Bitcoin

in the vault and he'd be able to use

those two keys to move the assets out

but during that time Natalie we're

sending you notifications every month

saying hey a vault claim has been

initiated if you if you didn't uh if

this isn't supposed to happen please go

into the app and cancel it and then you

go in and tap the button to to cancel it

and so it's a um it gives you that that

six-month weight period a few people

have asked why why six months in our

opinion it gives you a great amount of

of time to like really ensure that hey

this this person isn't just on a trip

overseas for a month or something like

that where they could be tricked from

this perspective so um yeah so it's it's

very easy to reject that and then if you

and Sam remained in a fight you can even

revoke his access to the Vault and take

him off of it completely right wait Sam

can you um request that access again I'm

just going to film that area that says

the six months because that screen I

like went off of it really quickly so

I'm going to try it one more time yeah

so on the reject claim page it says a

six-month verification period has begun

if you do not reject this claim your

recipient will gain access on February

21st

2025 um Nick so is there anything that

people should know in terms of any

implications like for example taxes if I

were to pass away and someone from my

family accessed my Bitcoin um are they

going to have to pay capital gains taxes

or is that something you advise them to

talk to their attorneys or financial

planners about yeah so the one important

thing to note thank you for asking this

question is that Casa is really not

handling the legal side of this whole

thing so there's two pieces you got to

be thinking about you got to be thinking

about how do I make sure that the

Bitcoin is actually accessible so it's

not completely lost if I pass away you

also need to think about how do I make

sure that this stays within the legal

system for my jurisdiction and is

properly accounted for so that my family

isn't in trouble isn't going through

months or years of court cases around

this and so doing that planning work

ahead of time can ensure that your

family has the right road map to be able

to use this Bitcoin to to benefit

themselves um and you can do things I

think that depending on your

jurisdiction that can um affect the tax

like the the estate tax uh transfer tax

in one way or another and so we really

recommend talking to an estate lawyer

figuring out how you're going to handle

that side of it as part of this overall

process and it doesn't mean that you

have to have the estate

lawyer uh side of things all figured out

before you go set up inheritance because

in some ways you just want to make sure

first and foremost that if something

unexpected happens that Bitcoin is still

accessible so get that set up and then

layer in the the legal side of it to

make sure that everything is by the

books and is done properly um I think

that's the best way to set up your

family for Success there no that's great

advice and and every state really

differs when when it comes to the the

laws with Estates and probate and all of

that so make sure to do your homework um

all right well while we still have Sam

uh let's just show you what it looks

like to revoke access so let's say I

decide that I'm going to have another

trusted recipient I can just go right

into the recipient um Tab and hit where

it says mobile key shared I can go to

the bottom and it says revoke Vault

access and I can choose revoke access um

so what happens on your screen Sam uh it

just says all is quiet

now so the thing went away no more key

yeah yeah so that revokes your ability

to make Vault claims it revokes your

ability to use any keys that are part of

Natalie's Vault all of that that and it

it happens you know instantly like that

and so um there's many reasons actually

that people might want to do this that

might not involve a any sort of falling

out or anything like that with your

family like maybe as part of your estate

planning process you realize oh I want

to have a trustee who's helping with

this or my my lawyer or executive

there's there's a bunch of different

reasons why you might do this and so

it's very easy to do and to take

somebody out put them back in later

however you need to do it um and I think

the other thing along these lines that's

worth mentioning that we get questions

about is people will say well I I want

to make sure that this is left for my

kids but they're not old enough to hold

keys and to be able to manage this kind

of thing and so in that scenario that's

where you can use somebody like an

executive or like a trustee or even a

trusted friend or family member to help

um access these keys for the benefit of

your your recip uh your beneficiaries in

your will and so that's also why we've

kind of not designated this as a a

financial beneficiary this is a

recipient who could be an executive or

it could be the actual beneficiary of

the assets got it yeah it's so important

especially if you have kids and you know

if you have a favorite that might change

over the

decades all right Sam thank you so much

for helping on your end was it pretty

simple it was very simple and like Nick

said it just immediately disappeared

when Natalie rejected me uh so uh worked

amazingly it was

Flawless all right well thanks so much

Sam um and Nick thank you so much for

walking us through it it it honestly

took maybe a couple of minutes I I know

I asked a lot of questions to stretch

this out just to get information but

this is so so important um for those of

you who might have been following me I A

friend of mine passed away last year he

was a bitcoiner thankfully he had a plan

in place so his parents could access um

the Bitcoin that he owned but it is

really important because something can

happen that is so tragic and unexpected

so make sure to do your planning Nick

thank you for joining me anything else

you want people to know before we sign

off um no I thank you Natalie thank you

Sam this has been great and I'm really

excited for more people to see how this

works because a lot of times people have

trouble kind of conceptualizing how it

works until they just see it and then

things click for them so I'm very

excited for people to see this yeah and

you saw it on the screen um head to link

ca. Natalie uh we have a promo for you

that's um operating right now I'm a

customer so full disclosure I've

partnered with CA but I'm also a

customer really excited that this is the

the solution that exists for people to

be able to multi- Sig in a safe way in a

private way and to be able to do um Casa

inheritance so thanks so much and uh

write your comments below and make sure

you sign up for Casa thank you so much

for checking out this episode of coin

stories this show is for entertainment

and educational purposes only nothing

should constitute Institute as official

investment advice and you should always

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