If some people has lots of bitcoin in their offline wallets and they die or lose memory.
Then those coins will be out of circulation right? Or is there any way to recover them?
If such thing happens, then it will be lost forever. No one can recover these lost assets since they are encrypted will password and private key that the only one who knows it is the sole owner of that wallet. If anyone related to the owner knows the private key of the wallet and/or his password then it may be recovered and be included in the circulation or some random hacker crack the wallet. Except from these, there is no other way to recover the lost Bitcoins