According to official FIFA regulations, when a player passes away:

* The player’s contract is automatically terminated as if it had naturally expired.
* Neither the club nor the player’s representatives are entitled to claim any further financial compensation.
* The club is required to pay all of the player's financial entitlements up to the date of death, and these are paid to the rightful heir (child, spouse, etc.).

What if the player still had an active contract?

* The contract is terminated immediately from the date of death, with all dues paid up to that day.

But why did Liverpool claim that they were the ones who terminated the contract?

* So they could continue paying the player’s wages until the original contract end date, with the payments going to his family.
* The club also committed to covering the full educational expenses of his children for life.

More than just a club.
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