That's depends on your choices when you're alive, So I'll advise you to make good ones before you leave.

Then let them know while you are still alive.

Everyone dies, you should keep a private key in your safe and just tell them to access it when you are gone. However, it's also necessary that they understand what is bitcoin and how to use it as it's better if they won't be needing other people's help to cash out your bitcoin in case they'll need to spend it, just for safety purposes.

Take a look on this one.
https://bt.irlbtc.com/view/5180850.0

Using Locktime for inheritance planning, backups or gifts

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We do all die and if those keys werent known on your one of family members then those coins will be lost in the void
or simply means it cant be accessed no matter what thats why the decision would be yours whether
you do let them know early or not.

sorry to bring it to you but dying is not something that would "probably" happen, it will happen at some point that's how life works, I didn't quite understand your question, your wife or kids or anyone close to you can access the wallet the same way YOU do, so you better find a way to give people you care about the info to your wallet, or make a will that has that and if you die it will be given to someone of your choice.

Recently, I saw an interesting project preposition for exactly this scenario. The project's idea was to create a certified testimonial in the format of an NFT so much like your will in the form of an NFT. The concept extended beyond crypto assets to real world assets but my concern was around the KYC issue and the idea that if people wanted to pass on their crypto assets they'll need to provide their private keys - the solution wasn't very clear to me but it included encryption and notaries etc

While this idea remained as just an idea (to me), if the two concerns of identity and private seed sharing are somewhat solved, essentially we'll be looking at a least a few million dollar project value preposition idea. That will solve these inevitable questions.

What are your thoughts on this, would you trust third parties with your seed before the encryption process? Will you feel confident to provide your KYC?

If we are dealing and investing in cryptocurrency then we must learn how to trust our keys in someone special to us. to those who we are working for because all our hard earned money here in this market will be go in vain if we die without entrusting our funds to others.
meaning no one can access our wallet aside from the person who knows your seeds.
this ahs been the issue for long and there are tons of bitcoins(and other cryptocurrencies) gone in the wind because of the reason owner died without any recipient.

As long as your kids/familly aren't crackheads, show them where your private key is. If you don't have children/ familly, find a friend you have absolute trust in and give them the seeds to store in a safe.

It will loss forever , can you imagine that all the funds you tried to gain for long time ? will be gone like that because of you dying.
try to find your worth trusted person that can accumulate all your funds in time of dying , we all does so hope you do the same thing mate.
remember that no one can access our wallets aside from whom we entrusted the Keys .

Dead is inevitable and unpredictable, so the solution is having one of your family members that you trust and let the person know where you save your private key, passwords  and email address associated your accounts.