Why it matters
Incapacity is often more complex than death. The owner is alive but cannot act. Holdings may need active management: paying taxes, responding to security threats, or making custody decisions. Without planning, family members may face court battles for control while bitcoin sits inaccessible.
How it works
Legal documents (durable power of attorney) grant authority to act on the owner's behalf. These must be paired with technical access: documented procedures for accessing custody accounts or self-custody keys. The triggering conditions for incapacity should be clearly defined, often requiring certification from physicians.
Example
A holder executes a durable power of attorney naming their spouse as agent, with their adult child as backup. The document specifically authorizes bitcoin management. Separately, the holder documents account access procedures and stores them with their estate attorney. If incapacitated, the agent can present the POA to the custody provider.
Related terms
- Fiduciary access
- Bitcoin inheritance
- Check-in protocol
- Dead man's switch
- Bitcoin executor
- Heir access
- Inheritance failure modes
