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Though it obviously varies by jurisdiction, the typical rule is that the dead person's debts have to be paid before their heirs can inherit their assets. If they didn't have significant assets then there is no remaining person or legal entity to collect the fine from. Modern legal systems do not hold family members responsible for fines owed by their dead relatives.
Sounds like a massive headache for whoever is in charge of their estate, needing to check with all the parts of the government they may have had outstanding fines with
I mean, estate lawyers are a thing
No. Not typical. Never heard of.
Its no different than when a company goes out of business. All their stuff is sold off and the money goes to all their creditors first before the owners get a dime.