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Not necessarily.
https://steamcommunity.com/discussions/forum/1/490123938441417365/#c490123938441692380
Apparently, Valve won't block such a transfer of ownership as long as the account has been bequeathed to someone through a valid Will.
If you have digital assets, you can include them in a will. You should also create a document called a digital will, where you include information on how to access your accounts such as email, etc. either through login/password or recovery instructions such as mobile phone password reset in case of your death.
(This is satirical).
The reason Steam likely doesn't block it is because really, it's not something they can really stop. passing the account is basically the equivalent of just passing on the username, password, and the username and password of the associated email address, and perhaps the ownership of the phone associated with the account. That's it.