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.
We know the difference and the disadvantages/advantages between the custodial and non-custodial arrangements, what CZ pushed for is good, still, we should not forget that "Not Your Keys, Not Your Coins," and if when some people are alive Binance is denying them their money, how much more when they are dead? No CEX should be trusted, self-custody is the best, and it is the person holding their coin who should know how to get the access to the account known to their trusted
peopleperson(s).