What happens to an Xbox account when someone dies

“First, your right to use the Microsoft account to access the Services stops immediately. Second, we’ll delete Data or Your Content associated with your Microsoft account or will otherwise disassociate it from you and your Microsoft account (unless we are required by law to keep it, return it, or transfer it to you or a third party identified by you). You should have a regular backup plan as Microsoft won’t be able to retrieve Your Content or Data once your account is closed. Third, you may lose access to products you’ve acquired.”¹

In the United States, Microsoft must first be formally served with a valid subpoena or court order to consider releasing a deceased user's account information, and it responds only to non-criminal legal process served on its registered agent, not to faxed or emailed requests.²

Microsoft decides whether to provide account contents only after careful review of the applicable laws, and says a subpoena or court order does not mean it will be able to assist.²

For customers in Europe, Microsoft responds to subpoenas and court orders served on Microsoft Ireland Operations Ltd in Dublin; customers in Germany and China may contact Microsoft customer support to ask for access to the account.²

A survivor does not need to tell Microsoft about a death. An account whose credentials are not known is closed automatically after two years of inactivity.²

Home Xbox sharing is not a transfer: the shared games stay licensed to the holder's Microsoft account, and when that account is closed the right to use it stops and acquired products may be lost.^{3, 1}

Outlook.com and OneDrive accounts are frozen after 1 year and their email and files deleted shortly after; the Microsoft account itself expires after two years of inactivity.²

When the account is closed, Microsoft deletes or disassociates its data and content and cannot retrieve them afterwards.¹

Microsoft account credentials cannot be transferred to another user or entity, and the terms tell the holder to keep the password confidential.¹

Under Section 14.a.vi, game currency and virtual goods are a limited, personal, revocable, non-transferable, non-sublicensable license for use in the Xbox Services only, with no right or title in them, and are never redeemable for money.¹

Under Section 14.j, digital goods, games included, are only for personal, noncommercial entertainment use, and copies may not be transferred.¹

An Xbox subscription authorizes recurring payments until it is cancelled or recurring billing is turned off.⁴

Microsoft sends reminders to Game Pass members inactive for 12 and 18 months, and after 24 months of inactivity turns off recurring billing, so the subscription stops at the end of the current term.⁵

Microsoft's bereavement page says a survivor without access to the account can stop subscriptions to Microsoft by closing the customer's bank account or credit card, revoking authorizations or informing the bank.²

Xbox wallet funds are Microsoft account balance, which is non-transferable to another person or Microsoft account and, except as required by applicable law, not redeemable for cash. Non-promotional balance does not expire.⁶