Since they are dead, they have nothing to feel or worry about in the physical world. Moreover, nobody will plan to invest and hodli to die without enjoying part of his investment or pass it on to his loved ones. Death is something that comes unexpected and this is why if our kids are grown up, you can teach them the basics about bitcoin on how to transfer from one wallet to another. If they have more interest in bitcoin, they can  learn on their own.

Not at all, the value of an idle bitcoin wallet with such funds will keep on increasing in value overtime since bitcoin price is likely to be moving in an uptrend than downtrend in future.