Here is a shot of what a death looks like if a sim still owns shops. It is fun to watch who they will go to by the games standards. I look forward to playing with this option more.

So far, I've had about 4 or 5 sims die that still owned lots. They have all died of old age, so get the double pop up. One for the shop transfer and one for inheritance. When shops are passed to a new sim, all shops go to one person. So if you want to split ownership between others, you may want to do that before the sim dies. If there is a sim living within the household and is a teen or older, the shops will go to them before someone outside the house.

With the above death, I made sure the sim had a better relationship with a sim off the lot than anyone on the lot. I really didn't think the shops would transfer off unless no possible sim to transfer the shops to. From my very limited (only 4-5 deaths) experience, it seems to work this way.