How will Bitcoin deal with death and transfer of ownership?

I’m curious if people have considered how Bitcoin (and any cryptocurrency) should work in the event of a sudden and unexpected death. In many cases those assets would be inaccessible, meaning eventually there would be almost no Bitcoin in circulation once it has all been mined. This might take a long time, but wouldn’t the supply eventually dwindle as more and more people died without passing their Bitcoin on?

I got thinking about this because of COVID and realized we have ways that wealth and assets are traditionally divided among living relatives or donated to charity or seized by the government, but a few people have already lost access to large amounts of Bitcoin and they’re not even dead. How does this affect the value and long term supply and flow of Bitcoin?