Overview — why planning matters
Setting up a Ledger device is the first step. Without a clear recovery and inheritance plan, access to your digital assets may be lost if something happens to you. This guide focuses on building a practical, secure plan so your crypto can be recovered by trusted parties when needed, while keeping your keys safe from theft and mistakes.
Step A — Secure setup
Complete a secure device initialization: buy official hardware, initialize on-device, choose a strong PIN, and write down the 24-word recovery phrase. Use a steel backup plate for durability. Create at least two independent physical backups and store them in separate, secure locations (for example, home safe and bank safe deposit box).
Step B — Build a recovery plan
A recovery plan should map who has access, under what conditions, and how they will restore funds. Use one or a combination of these approaches depending on trust and complexity:
- Direct backup: A trusted executor holds a sealed backup with instructions to use it only after verification of death/incapacity.
- Shamir's Secret Sharing (SSS): Split the seed into multiple shares held by different trusted parties (e.g., 3-of-5) so no single person can access funds alone.
- Multisig custody: Use a multisig wallet requiring signatures from multiple devices — combine hardware and institutional signers for added security.
Step C — Legal & operational steps
Formalize the plan with legal documents and clear instructions that won’t reveal secrets prematurely. Consider an escrow or a lawyer who understands crypto, and store keys or instructions in a tamper-evident envelope with a chain-of-custody record. Avoid naming recovery words in plain text in legal documents; instead, use references like "sealed hardware device in safe deposit box".
Step D — Testing & periodic review
Test the recovery procedure by performing a mock recovery on a spare device. Update the plan periodically and verify backup locations and trusted contacts. Technology and personal relationships change — revisit the plan every 1–2 years.
Security considerations
- Never store the recovery phrase digitally or in cloud services.
- Use passphrases only if you can securely manage an extra secret; document recovery instructions without revealing the passphrase itself.
- When splitting shares, ensure the chosen threshold balances resilience with security.
Emergency access templates
Provide trusted parties with non-sensitive instructions such as where backups are stored, who to contact, and the legal steps required. Avoid including secrets in these templates.