Character Death has a very good chance of happening. The campaign is a sandbox. This is awesome because it gives you the power to write your own story but has the downside in that you could walk into an area you’re not ready for. The first book is from 1st to 3rd (getting to 4th by the end of it). If you manage to wander straight to the final battle…you’ll die. You have a good chance of doing that even at the correct level.
That being said, if you die and make a new character, I won’t make you do full introductions/etc. Your new character will be assumed to have always been there and know what everyone else does (as per what you have experienced). Yes, this could create holes in the history of the group…but it happens. As the town grows more, it will make even more sense. If you would rather do full intros, we can work that out as well. I’m not against it, just making things a bit easier.
When someone dies, you may loot 1 item from them. Anything taken as a ‘token’ is fine, but can not be anything of true value. You can take all their money and basic goods. The rest of their stuff will either get lost to oblivion, or you may donate it somewhere. Basically, if you are allowed to take all their stuff, there will be a very quick imbalance of goods as you’d be coming in with a fully geared character AND still have all their old stuff. Anything you find via the adventure itself can be kept separate as the book gave that to you directly.
Amounts to be ‘donated’ may also be restricted. Since you are building a city/kingdom/world/etc, the amounts that get dumped into it because of character deaths may start to throw in imbalances as well. It may just not make sense for a character to make that large of a donation, even in death. I doubt this will be a big issue, but something to keep in mind.