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To be honest I think VALVe would just let the account gather virtual dust.
Originally Posted by Steam Support
Hello,
Thank you for contacting Steam Support.
This type of situation is resolved on a case by case basis.
It is against the Steam Subscriber Agreement to buy, sell, or trade a Steam account; however we are happy to work with the respective legal parties if this unfortunate event occurs.
If you have any further questions, please let us know - we will be happy to assist you.
Original thread http://forums.steampowered.com/forums/showthread.php?t=2227370
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Not much information available regarding this and Support's response is rather generic but it suggests that if such a thing occurs; it will be determined by a case by case basis. I think the only viable option for all parties would be to close the account for security reasons. It doesn't appear they cater to the deceased in any which way either in terms of a 'legacy' and the strict licence rules are present in this situation too which is of no surprise. I imagine that it would be quite a complex and timely process to confirm the death of a user with all the correct documentation that has to be vetted also.
It may be worth Valve considering in the future a 'next of kin' feature where a trusted secondary person can access your account to close it if such a thing occurs but this could also be a tough system to implement without the risk of fraud.