Well, it's a really interesting question, and one that I guess could be solved with a smart contract. I'm not quite sure how it would work, maybe there could be some kind of dead-mans trigger, which requires certain inputs to occur. I wonder if there is a business opportunity for someone to create an semi-automated system which does actually have human interaction for being able to do a manual check? I guess if public records were on the blockchain it may make it easier (until some hacker decided to mark you as dead, then marry your sister or something...?). It's a really interesting concept, and one which I look forward to seeing solved.
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ya smart contract could work but like you said even if the public records were on blockchain its still would be susceptible to hacking, hopefully as crypto investment gets even more popular we'll get to see this solved.