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After you die, your Steam games will be stuck in legal limbo
(arstechnica.com)
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Agreed on both counts
OTOH, Steam is an international company, and there are different standards and such for death certificates across the world. So Steam would have to have some expertise in verifying death certificates from any country they operate in.
Increasing overhead and liability when they'd probably earn very little good will is usually not the best business strategy. I don't think they'd do it unless they were legally compelled to.