Surely some folks have attorneys or other people they trust in their lives with the most intimate of details, and there can be a variety of ways for persons to make sure that they have some kind of a successorship system in place. Trusted persons might have some or all of the material, and trusted persons might not even know the complete contents of the materials that they hold if there might be a sealed envelope or a safe or maybe there would be instructions to contact another trusted person (named Benny) for further instructions or for other parts of the puzzle.
i am not suggesting that there is any ONE correct way, even though I am suggesting that some people may well not end up adequately putting systems in place or keeping the information up-to-date if there might be some papers with passwords, there might be a failure to update the sheet after some of the passwords end up needing to be changed.
You missed the point which I was trying to say. What is practice till now is that one a person dies his left over money and assets are distributed according to his will, in case there is no will different countries have laws in place for that. Like where I live, if a person dies his property is distributed to his parents and family (wife/children) in case the deceased is married or to his parents and brothers/sisters in case deceased is single.
While this won't be the case with Bitcoin. One has to make sure he hands over keys and necessary details to person he trust most in his life, so that in case he dies his loved one can takeover Bitcoins and they are not lost forever on the Bitcoin blockchain. To my knowledge there is no LAW in place in my country that defines how Bitcoins will be distributed to next of kin.
Why taking a risk, why not tell your next of kin about details of your Bitcoins in your life.