Well, Binance founder CZ has suggested a function to be used in binance where one can set up a will and put in a contact to which the coins will be given to after you have passed. Either the coins will be passed to your trusted person if the account is inactive for a specific amount of time or your family can submit a death certificate. This sounds to me a fool proof function. Could there be downsides to this function?
See
here.
Why not hold all the coins to hardware wallet and passed it to your beneficiary through a lawyer or safe. This way you will not rely on decentralized exchange feature just to transfer your holdings when you are gone.
Using this feature means you are storing your coins on exchange for a long time which is not advisable due to safety concern.
Not your keys not your coins. Hardware wallet is the best option to physically transfer ownership of your coins.