Bitcoin Recovery Document for Heirs
Recovery Documentation for Heirs and Executors
This memo is published by CustodyStress, an independent Bitcoin custody stress test that produces reference documents for individuals, families, and professionals.
Recovery Versus Access Documentation
Access instructions assume everything works as expected. A bitcoin recovery document for heirs addresses what happens when it does not. Recovery implies something has gone wrong—materials are missing, procedures fail, unexpected obstacles appear. Heirs facing problems need troubleshooting guidance that straightforward access instructions do not provide.
Recovery differs from access. Access is the happy path where everything works. Recovery is what happens when the happy path fails. Heirs attempting inheritance may encounter problems the holder never anticipated. Documentation that addresses only expected scenarios leaves heirs stranded when the unexpected occurs.
Recovery Versus Access Documentation
Access documentation explains how to proceed when everything is available and functioning. The seed phrase is where it was stored. The hardware wallet works. The software recognizes the configuration. Access documentation assumes favorable conditions that may not exist.
Recovery documentation addresses unfavorable conditions. A backup is missing. A device is damaged. Information is incomplete. Some element that should be present is not. Recovery documentation helps heirs navigate situations that access documentation assumes away.
The distinction matters because heirs face higher failure rates than holders expect. Holders who successfully access their bitcoin do so with knowledge, practice, and complete materials. Heirs lack these advantages. What works for the holder may not work for heirs attempting the same thing years later under different conditions.
Recovery documentation anticipates failure modes. What might go wrong? What would heirs do if each thing went wrong? This anticipatory approach addresses scenarios before they occur rather than leaving heirs to improvise in the moment.
Common Recovery Scenarios
Certain problems occur frequently enough that recovery documentation can anticipate them specifically. These common scenarios represent the most likely obstacles heirs will encounter.
Missing or incomplete seed phrases pose immediate problems. A word is illegible. The backup was damaged. Part of the phrase exists but not all of it. Recovery documentation for this scenario might explain whether partial recovery is possible, whether alternate backups exist, or what professional services might help.
Hardware wallet failures block direct access. The device does not power on. The PIN is unknown. The device was wiped or damaged. Recovery from hardware wallet failure depends on having the seed phrase—documentation that explains this dependency helps heirs understand their options.
Software incompatibility creates technical obstacles. The wallet software the holder used is no longer available. New software produces different addresses from the same seed phrase. Documentation that records derivation paths, wallet types, and configuration details enables recovery using alternative software.
Passphrase uncertainty compounds other problems. If the holder used a passphrase and heirs do not have it—or are not sure whether one was used—recovery becomes dramatically more difficult. Documentation that clearly states whether a passphrase exists and what it is (or where to find it) prevents this common failure mode.
Information for Troubleshooting
Troubleshooting requires information that simple access instructions may omit. Technical details that the holder takes for granted become critical when heirs must diagnose and resolve problems.
Wallet type and version matter for compatibility. Was this a hardware wallet, software wallet, or paper wallet? What specific product or software? What version was current when the holder last used it? These details guide troubleshooting that generic instructions cannot address.
Configuration choices affect recovery paths. What derivation path was used? What script type? Were any non-standard options selected? Default assumptions may not match the holder's actual configuration. Documented configuration enables matching recovery attempts to actual setup.
Historical context helps interpret current state. When was the wallet created? When was it last accessed? What changes occurred over time? This history helps heirs understand why things are the way they are and what factors might affect recovery.
Contact information for help provides options when self-help fails. Who can heirs contact? What professional services exist for bitcoin recovery? What resources does the holder recommend? Troubleshooting guidance that includes help contacts gives heirs fallback options.
Partial Information Scenarios
Heirs may have some but not all of the information needed. Recovery documentation for partial information scenarios helps heirs maximize value from incomplete materials.
Incomplete seed phrases may still enable recovery. If most words are known, the remaining words may be derivable. Documentation that explains this possibility—and its limitations—helps heirs understand whether professional recovery services could help.
Uncertain passphrase situations have specific implications. If heirs think they know the passphrase but are not sure, they can try it. If they have no idea, options narrow dramatically. Documentation that addresses "passphrase uncertainty" as a specific scenario helps heirs assess their situation.
Mixed format recoveries may combine multiple partial sources. Perhaps the hardware wallet is inaccessible but the seed phrase backup exists. Perhaps one backup is damaged but another is intact. Documentation that explains which materials can substitute for which helps heirs assemble what they have into a recovery path.
Priority ordering helps heirs allocate effort. If multiple partial recovery approaches exist, which is most likely to succeed? Documentation that ranks options by probability of success guides heirs toward the most productive paths first.
What Not to Do
Recovery documentation may need to address dangerous actions that heirs might attempt. Well-meaning but uninformed efforts can make situations worse rather than better.
Random password/PIN guessing on hardware wallets can trigger wipes. Many devices lock or erase after failed attempts. Documentation that warns about attempt limits prevents heirs from destroying access while trying to gain it.
Moving bitcoin before fully understanding the setup creates risk. Sending bitcoin to unknown addresses, using unfamiliar services, or acting hastily under pressure can result in losses. Documentation that counsels patience when appropriate helps heirs avoid panic-driven errors.
Sharing custody information with unverified "helpers" exposes holdings to theft. Scammers target people seeking recovery help. Documentation that warns about this risk and provides criteria for identifying legitimate help protects heirs from exploitation.
Discarding materials that seem useless may eliminate recovery options. Partial information, damaged materials, or confusing items may still have value. Documentation that advises preserving everything until fully assessed prevents premature destruction of potentially useful materials.
Professional Recovery Resources
Some recovery situations exceed what non-technical heirs can handle alone. Recovery documentation that addresses when and how to seek professional help gives heirs appropriate options.
Recovery services exist for various scenarios. Some specialize in hardware wallet issues, others in corrupted backups, others in forensic recovery from digital devices. The recovery landscape is fragmented; documentation that maps services to scenarios helps heirs find appropriate help.
Verification of recovery services matters critically. Unverified services may be scams. Documentation that provides guidance on identifying legitimate services—reputation indicators, verification methods, warning signs—protects heirs who must navigate an unfamiliar market.
Cost expectations help heirs make informed decisions. Recovery services vary widely in pricing. For small holdings, professional recovery may cost more than the bitcoin is worth. Documentation that discusses cost-benefit considerations helps heirs decide when professional help makes sense.
Information to provide recovery services can be pre-organized. What details will services need? What questions will they ask? Documentation that prepares heirs for these interactions helps them engage effectively with professionals.
Emotional and Practical Context
Heirs attempting recovery do so while grieving, stressed, and managing multiple demands. Recovery documentation that acknowledges this context serves heirs better than documentation that assumes ideal conditions.
Patience reminders help heirs resist pressure. Recovery can take time. Problems may not resolve immediately. Documentation that normalizes patience and discourages hasty action helps heirs maintain appropriate pace.
Realistic expectations prevent discouragement. Not all recovery attempts succeed. Some situations have no solution. Documentation that honestly addresses limits—while still providing maximum guidance—helps heirs calibrate expectations appropriately.
Milestone markers show progress. When recovery involves multiple steps, knowing what has been accomplished and what remains provides psychological grounding. Documentation that breaks recovery into identifiable stages helps heirs feel progress even in difficult processes.
Permission to seek help counters self-reliance pressure. Heirs may feel they should handle things themselves. Documentation that explicitly authorizes and encourages seeking help when needed removes barriers to getting appropriate assistance.
Updating Recovery Documentation
Recovery documentation becomes outdated as technology and circumstances change. Maintenance requirements affect whether documentation remains useful over time.
Technology references decay. Software versions change. Services discontinue. Websites move. Recovery documentation that references specific technology may need updating as that technology evolves.
Contact information changes. Help contacts may change phone numbers, email addresses, or stop being available. Periodic verification that contacts remain valid keeps this information useful.
New recovery options emerge. Services and techniques that did not exist when documentation was created may become available later. Updated documentation can incorporate new options that original versions could not include.
The holder's death prevents future updates. Whatever recovery documentation exists at death is final. This reality emphasizes thorough initial creation and diligent maintenance during life.
Assessment
A bitcoin recovery document for heirs addresses what happens when standard access fails. Recovery implies problems: missing materials, failed devices, incomplete information, unexpected obstacles. Documentation that anticipates these scenarios gives heirs troubleshooting guidance beyond basic access instructions.
Common recovery scenarios include incomplete seed phrases, hardware wallet failures, software incompatibility, and passphrase uncertainty. Information for troubleshooting includes wallet details, configuration choices, historical context, and help contacts. Partial information scenarios and guidance on dangerous actions to avoid round out recovery coverage.
Professional recovery resources may help when self-help fails, but heirs need guidance on identifying legitimate services. Emotional and practical context acknowledgment serves heirs working under difficult conditions. Recovery documentation requires maintenance as technology and circumstances change—but the holder's death ends the possibility of updates.
System Context
Examining Bitcoin Custody Under Stress
Bitcoin Heir Documentation Usability Gaps
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