Huh. I don't really see a problem; guy dies, the party gets his stuff -- although my wife and I have our players in our campaigns write up wills so that there are some guidelines as to where the stuff goes.
Also, all of our players have multiple PCs, often running on seperate adventures parallel to each other, so we don't have to immediately replace any dead ones and we usually opt to
raise or
resurrect 'em anyway (the Adventuring Organization that we set up in my wife's campaign maintains a Resurrection Fund into which everyone donates a small percentage of the loot from each adventure); we just had to bring back a character who was disintegrated, which depleted some of the fundage. So YMMV.
The idea that the gear automatically belongs to the ''collective party'' does bother me, to a degree; 1) What is this, the Borg? and 2) What is this, the Borg?
As for the ''send in the thieves/authorities/rightful heirs/ghosts of the PCs/et cetera to mess them up'' , this smacks of heavy-handed railroading to me.
1) Thieves? How do they know what goodies the party has? If you're using your DM's Knowledge to do that, it's as bad a case of meta-gaming as a PC who attempts to make gunpowder in a campaign world where it is unheard of. Of course, if the PCs are fond of announcing that they use their
Hammer Of Unerring Splattage, openly and publicly, by all means have a go at them; they're
begging for it.
2) ''Inheritance laws''? Do the ''Authorities'' have a laundry-list of the belongings of every individual person within their boundaries? Do they have special magical ''spy-satellites'' that follow everyone around, taking note of their actions and possessions? What if the party is in the Wilderness/Abyss/''Lawless Area''/Thundering Crack Of Doom, et cetera?
3)''Relatives''? Do your group's PCs even
have relatives? I know that several of my own PCs and those of my fellow players simply don't have any family, or they live in an obscure, far-off place. Any relatives who would know where the PC is, or even be aware of the relationship? Did these relatives happen to see on the 6:00 Crystal Ball that Valdon the Valorous (a distant cousin) died in The Cavern Of Unutterable Horror, 100 (or 1000, or 100,000) miles away, or on another Plane?
If there are
established relatives who give a damn, or the existance of such relatives is left vague by the player (''Uh, I
think that Valdon is the last of his tribe''), then fine, do it. But I wouldn't just make some up for the express purpose of relieving the party of goodies that you let them have.
4)''Ghosts'': I know that as a player, I'd cry ''foul'' in a hot Greyhawk minute if the spectral form of a dead PC were to show up and start demanding ''his'' stuff
if it would be out of character for him to have done so in life, and so would the other players in my group.
As a DM,the idea makes me cringe; dead or not (unless actually converted via in-game events into an undead) the PC still belongs to the player. I'd be damned before I'd stomp all over the memory of that PC's portrayal and the rights of the player, just to screw the party.
That's cheese, IMNSHO, pure and simple.
5) Rust Monsters? Ick. Few things say ''Cheese Alert!'' than Rust Monsters (or Disenchanters).
(I will admit that I used Disenchanters against an arrogant PC [or was it the player?] about 20 years ago cos he said that his treasure room was ''so secure that even the Gods couldn't get into it and-'' *boom*. Disenchanters. Heaps of 'em. All over the place.)
6) The God (or Gods) of death want them as payment to ''cross over''? Meh, why?
An option that you might try (speaking of relatives) is have the new PC that the player makes up as a replacement
be the stiff's ''rightful heir'' (brother/sister/cousin/best friend/et cetera), and then give them first level gear and money plus the ''inheritance''.
If the party balks at giving up the goodies
then, the new
PC could institute legal proceedings. Might lead to an interesting court battle (assuming that the legal system to support it exists) full of juicy role-playing.
Damn,
that actually sounds like
fun.