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No official answer to this though as the ToS is just no account transfers.
You can write down the information you feel is needed for them to have it when you pass and Valve won't prevent it, but neither do they support it.
As long as they have the information needed to prove ownership of the account (or just don't run into situations where they need it) then they should be fine.
Unofficially, say your grandkid happens to get your username and password along with any information that may be used to claim the account should they need to like credit card numbers and original email address on the account, then they could feasibly continue to make use of the account.
There is a general account question form here:
https://help.steampowered.com/en/wizard/HelpAccountDataQuestion
If you get an answer, feel free to post what they said here.
This question comes up now and again, but we have no clear answer.
https://store.steampowered.com/subscriber_agreement/
Now as a forum regular, and others like me will tell you, the "owner of the account" is the one who can prove it is theirs. Whether that is you or your grandkid is up to you to decide. Steam Support will only care, should the need arise, that the "true account owner" can answer their challenge questions correctly. This usually involves the earliest verifiable information they have on record such as a first game key, first credit card number, first email address, etc. If the grandkid can supply that information, then the account is theirs.
Officially passed on, no. Unofficially, most certainly.
Like I said, Support will only be concerned with whether or not that person can prove it's their account. Think of it like your son/daughter calling a bank to speak on your behalf because they're asking questions you don't quite understand. The bank issues challenge questions and as long as the person on the other end of the phone can answer them correctly they are identified as "the owner".
Perfectly acceptable. Enjoy the gaming to the very end. I hope to be as fortunate. If I were your grandkid, I would at least want to have you on my Steam friends list so that you would forever be enshrined there. So if your grandkid has an account of their own, make sure to get on their friends list at least if not already.
Game on, dude.
Good to know. I already put the person i want to give in my will. So i hope they enjoy it after i die. They love retro games, and i have quite a few, so i hope they like it.
No Brasil, há na legislação, que uma vez falecido, todos os bens deste serao transferidos aos herdeiros.
Isso inclui os direitos à propriedade e direitos de uso.
Ha tambem onde moro, estipulacoes legais relacionadas a direito do consumidor, onde afirma que, nos contratos de adesao (caso steam, onde voce adere ao servico/produto posto a disposicao), qualquer estipulacao que ofende direitos pessoais ou a terceiros, sao nulas de pleno direito.
Finalizando, sob esta estreita otica e tambem nao querendo aprofundar mais sobre o caso, haja visto que aqui talvez nao seja o melhor ambiente para discuti-las, concluo que sim, voce pode indicar sua conta e demais dados para a utilizacao da steam por eles.
(in English: yes, you can via testment, proceed to give rights about your account for the individual you nominate. BUT
pearhaps he might be not able to change your username, since it would unwanted labor for valve, I mean Steam.)
User name is immutable anyway. It CAN NOT be changed.