Maybe what matters are surviving family and potential defamation suits. Edit: Oh well, the dead apparently have no rights. See http://jonathanturley.org/2007/08/18/defaming-the-dead/
Anything stored always has the chance of being shared. I have mixed feelings about stuff shared after a person dies though. If there were any laws restricting what could shared to the public then it's just going to be abused by those with money looking to cover something up for their own gain. To censor. Ethical reasons though? Heh, you can barely find one up kept grave over a hundred years old. And ironically those private records might be the only surviving history of some people.
IMO use hard disk encryption while you are still alive. If your family is interested enough to pay to have the encryption broken then the violation is fully on them. Best efforts thing.
Right. And by using pseudonyms via VPNs, JonDonym and/or Tor, they also won't know what online stuff is yours