I suggest to add new game mode witch can be set in world creation menu like hardcore. There will be a new item called "Testament" which you can get from librarian same way as a Divorce Papers from cleric. Of coure player will be able to get it only if Dynasty gamenode will be chosen.

Dynasty mode will be like hardcore but if you die and you have children you will respawn as one of them. To chose child you need to give Testament to one you want before death. If child is still a baby it will grow up instantly.

This feature will improve game dynamics beacouse if you had already married a villager and have kids there is nothig to do. You probaly don't want 100 kids. New life will give new opportunities: new wife new family, another story.

Notes:
-Rank doesn't change upon death but hearth points with villagers will be divided by two(Without family members of course)

-You will need to add new dialog lines for sibling, parent and other relatives.

-If you die and you don't have children you can only play spectator mode(same as hardcore)

-After death you receive all genetics, traits etc.

-Your items after death will be stored in the grave. Grave will spawn on a cmentery(if you had built one)
or in your death location

-Sorry for my English :)