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If they have all the information needed, then they should be able to recover it.
If not, then it is gone.
It's a bit of a grey area and i've heard mixed things on it, so its really up to steam support's discretion. There aren't really many laws dictating how account ownership works after death so the answer from support can very likely be you can't recover it.
If it's changed since then we haven't been made aware but I highly doubt it.
https://steamcommunity.com/discussions/forum/1/490123938441417365/#c490123938441692380
That is a random user, not a mod. It has always been an extreme ymmv and that is not the official stance. The SSA specifically states that they cannot be transfered but depending on who you get they have done it in the past supposedly, and refused to do so in the past.
Here is a much better and accurate post on the subject - https://steamcommunity.com/discussions/forum/7/617336568077133720/#c617336568077220427
Ah well, either way forum moderators are not steam support staff, so again there is a post straight from steam support confirming what i said.
It can go either way and its a case by case basis. There is no official policy for it.
However, outside of going through and trying a long drawn-out legal process in which you get to argue about inheritance rights - which still is nothing like a guarantee in this case (as the Steam Subsciber Agreement does not allow for this), you're basically done.
So it really boils to down two things - money and time investment.
If the account has a shedload of games and you feel it's worth spending likely thousands in legal bills just for the chance at maybe having a case (which as I said, is not remotely guaranteed), then that's up to you.
But personally, I'd say you just leave it as is because the risks FAR FAR outweigh any possible good result here.
And at the end of the day all that matters is being able to prove ownership. It's not Steam's job to determine if someone is dead or if someone with proof of ownership is otherwise ineligible to access the account technically.
If you can't prove ownership you don't get access, alive or dead. It's not like most users have prepared their Steam accounts for next of kin in case of death anyway. So for a lot of people they're going to find they can't prove ownership, so they won't get access.
Precisely,
It's a burden of proof thing.
The onus is absolutely on the person CLAIMING to be the owner. They must provide sufficient proof to reassure Valve it is correct.
It ain't down to Valve to disprove even if they remotely could.