That part is correct - based on a prior 5th Circuit court case, a defendant who dies with his initial conviction on appeal is presumed to have won the appeal and thus all charges are dismissed.
Thus with the Lay case the Feds will be unable to seize any of his remaining assets - likewise 50% of those now go to his wife and are further protected from judgement.
Not from a civil judgment, just from criminal forfeiture. There is still more to come.