To me i find that this passing down of crypto to the next of kin if you pass away suddenly act like a will and is better than the standard type of will make by parents to their child in many ways.
Does it ever cross your mind that how will does this process work? For example nomination of your next of kin and problems like allocation of percentage to your next of kin if you are passing to several of your kins and how does we register our next of kin into our wallets?
I believe their designer or coder for this project will develop a sophisticated in built system into the platform to solve the confusions that you have. However how it really works i will need sometime to read up the white paper to see any information is provided by them to tackle your questions though.