https://bt.irlbtc.com/view/5526556.msg64956549#msg64956549
You can check this thread of mine out. Is about testing custody.

Solution? There's no real solution
Find someone who you perceive as been trustworthy and take the risk
Life choices are tied to a risk.

Or better still use a multisig wallet or another alternative is
Shamir secret sharing.

I have read about this same type of discussion in this forum in more than 2 threads, if I'm not mistaken, and there is no exact perfect solution to it. Trust is one big thing, even as you still need to trust someone if you really don't want everything you have worked for to go untouched.

You can just choose your spouse or one of your children, whom you can teach about how to access a wallet with a seed phrase and entrust it with another in case of an emergency. You will know that your family can still have access to your holdings. It's worth it even if you are thinking about the danger of losing everything by trusting the wrong person.

I’d say nobody at least not in a way that gives full control to someone else. Splitting the seed into parts, using multi-sig setup or encrypting it with a trusted dead man’s switch could be safer alternatives. Trust is fragile and situations change. The challenge isn’t just who to trust but how to ensure access without compromising security.

The best solution is a mix of solutions.

You can not leave the seed to who you think should and will enter your property by the time of your death.  There are enough cases of people who died and had their property robbed by strangers or even relatives who should not have the right to the items post mortem.  If you leave a note to who you think will earn the right to your seed, you are playing lottery.

But unfortunately, this can still happen even if you leave the seed to only one person you trust or a few people you trust.  A lot of things are still possible.  Humans are really bad at keeping a secret, so they may be robbed of the seed themselves upon your death.  Then it is also important to take into account that, while you trust somebody right now, they may betray you even while you are still alive and take your Bitcoin without your knowledge or approval considering they are now an owner of your seed too.

Then the solution seems to be a multi sig wallet.  But even that comes with caveats.  Consider you have four kids and they are all married.  Three of them die in a car crash and their spouses were always ready to betray you.  Due to their death and their ignorance of your feelings or financial status, they will turn their back against you and you will only have one kid left who is able to help you out.

Humans are not only an excellent creature when it comes to not being able to keep a secret but also excellent at betraying others to their own advantage.

Out of my lack of trust particularly in strangers, I would never put my trust into an institution or a stranger to help me out with keeping my Bitcoin safe or distributing it to the right people if I happen to die.  So these are and in my opinion should always be the last resort on the list of ideas.

I do not believe there is a perfect solution.  For each solution, you can mess up.  The best way is probably to simply mix multiple solutions together.  While that means more headache, it also means less Bitcoin lost if anything goes wrong.  Otherwise, the best thing you can do is hope nothing bad happens and everything goes right.

It's a real challenge everywhere, not just in some countries. It's indeed hard to be your own bank.

I'm afraid there's no solution. One situation is different from another but, overall, the risks of holding the key to a significant sum are high. Robbery, theft, sudden death, accident, serious illness, fire, flood, and so on and so forth could compromise your entire savings beyond recovery.

There are measures that reduce such risks like educating close and trusted family members about Bitcoin and private keys and whatnot, giving them hints that you've got small savings in Bitcoin, using multiple steel backups, and so on, but these don't take away the risks completely.

What's left I guess is the price to pay for having this kind of financial freedom.

Well if you can't trust a spouse then there is no reason to continue living

You can always use additional protective measures, like for example in case of storing the mnemonic at your parents' house you could encrypt it before printing it on paper. Then store the passphrase separately (in a different location) so that in case it was taken by someone else (a third party like a thief or something) it cannot be stolen.

But this is one of those scenarios that there is no solution that fits all. For some people a safety deposit box in a bank may be a better solution (although I'd say you must encrypt it in this case) if they are single or have no parents or something like that.

I would guess that there are quite a few people who would not trust anyone with their seed phrase, even if it is their own wife or children, because it is not a matter of trusting them or not, but rather a matter of taking responsibility, you need to see their capability to take responsibility, if you see that they are not ready and experienced in doing so, then you should not burden them with such a heavy burden. The fear of making bad decisions or mistakes that they might make which could potentially result in the loss of bitcoin is a big consideration—and that is why some people prefer not to share their seed phrase with their family.

While you should limit the people who have access to your keys/seeds, I think you should be thinking in terms of who you will want to have your coins when you die. You could even give different people sections of your keys and hope they don’t conspire against you. There’s also multisigs that can be useful for a variety of reasons.

I have family and friends that I trust but trust can always be broken, even as a married person, I still don't think it is a good idea to give my key to my spouse because a lot is happening in today's world, I will prefer to key them their own hardware wallet and instruct them about keeping their keys to themselves and keeping mine to myself too.

Private keys are named private keys for a reason, it was never made to be shared about friends and families, there are betrayers and deceitful people among those who we called loved ones.

Some hardware wallets today comes with multiple key function where more than one person can create the wallet at once and each of them will have their seed phrases, to unclock and move funds out of this wallet, all seeds need to be import, like signing a transaction by more than one person for the transaction to go through, I think this one is better for families.

On my Keystone wallet it is called Shamir Backup, it has more advance backup option and suited for more than one person.