Offline death in an online world.

When people die in real life, what happens to their online identity? I understand email accounts self-delete after a certain period of inactivity, but what about Facebook and Myspace accounts? If someone puts up a profile you on MyDeathSpace after your death, is that suppose to be enough to alert the online world about your demise? What happens to your eBay account if you have one? Especially if you were selling/bidding on things? And say you keep a blog? What happens to it?

I want to know the answers to these questions. I also want to know if it's considered too lame or of bad taste to engrave 'FAIL' or any of it's derivatives ('aboard the failboat'/'fail at life' etc) on a dead person's tombstone.