diff --git a/templates/book_chapter.yml b/templates/book_chapter.yml
index 7f18672..dc532a5 100644
--- a/templates/book_chapter.yml
+++ b/templates/book_chapter.yml
@@ -319,17 +319,27 @@ steps:
         Use ONLY what your PASS 1 narrative says.
 
       ══ MANDATORY CHECK — DECEASED CHARACTERS ══
-      STEP 1: PROSE IS GROUND TRUTH — Read your PASS 1 narrative (Turn 2). Find every named
-              character who appears in the prose (speaking, moving, thinking, physically present).
-              → These characters are ALIVE. Use LIVING FORMAT for each one.
-              → If a prior deliverable shows them as DECEASED — the prose OVERRIDES that.
-              → The draft you just wrote is THE authoritative source. No exceptions.
-      STEP 2: For characters NOT present in the PASS 1 prose, check PASS 0 context:
-              → If they were DECEASED in a prior character-state file: carry them forward
-                as DECEASED using the short DECEASED FORMAT.
-              → If they were ALIVE but simply off-screen: omit them (no update needed).
-      STEP 3: NEVER mark a character DECEASED if they speak, act, or appear alive in PASS 1.
-              NEVER give absent-but-alive characters a new Location or Emotional update.
+      Before writing ANY character entry, classify every named character into ONE bucket:
+
+      BUCKET A — DIES IN THIS CHAPTER: Character appears alive in PASS 1, then dies within
+               THIS chapter's narrative (death scene described in PASS 1 prose).
+               → Use DECEASED FORMAT. Death chapter = {chapter_ref} (NOT any prior chapter).
+               → Write a NEW ESTABLISHED sentence from how they died in PASS 1.
+               → NEVER copy the chapter number or cause from a prior deliverable.
+
+      BUCKET B — ALIVE THROUGHOUT: Character appears in PASS 1 and is still alive at the end.
+               → Use LIVING FORMAT.
+               → Prior deliverables showing them DECEASED are OVERRIDDEN by the prose.
+               → The prose you wrote is THE authoritative source. No exceptions.
+
+      BUCKET C — ABSENT (not in PASS 1 prose at all): Character does not appear.
+               → Check PASS 0 for last known state.
+               → If DECEASED in prior state: copy their entry forward UNCHANGED (same chapter).
+               → If ALIVE in prior state: omit them (no update needed for off-screen characters).
+
+      RULE: NEVER use a prior deliverable's death-chapter for BUCKET A characters.
+            NEVER mark a BUCKET B character as DECEASED.
+            NEVER give a BUCKET C / deceased character a living Location or Emotional field.
       ══ DECEASED FORMAT(two lines only) ══
         ## [Name] — DECEASED (Ch[N])
         Established: [one sentence: how they died]
@@ -377,25 +387,16 @@ steps:
       This ensures multi-chapter secrets are NOT silently dropped between chapters.
 
       ══ DEATH-FORWARD RULE ══
-      Before submitting, scan the PASS 1 prose for any character death events.
-      For EACH character who DIES in this chapter's prose OR who was already marked
-      DECEASED in the previous character-state:
-        → Set their Status field to: DECEASED (Ch[N] — [cause])
-        → Set Location to: [place of death or burial], not a living location
-        → Remove Active obligations and Open loops (replace with Legacy:)
-        → Legacy field: one sentence on how their death affects surviving characters
-        → Set Permanent: YES (deceased)
-      NEVER give a deceased character a living Location, Physical, or Emotional field.
-      NEVER assign a deceased character future obligations or arcs.
-      EXCEPTION — PROSE OVERRIDE: If the character appears ALIVE in your PASS 1 prose
-        (speaking, acting, physically present), this OVERRIDES any previous DECEASED state.
-        Use LIVING FORMAT. The prose you wrote is always the authoritative source of truth.
-      If a character was DECEASED in the previous state, copy their entry forward UNCHANGED
-        unless (a) they die in THIS chapter's prose (update the cause), or
-        (b) the author's intent explicitly retcons them as alive.
-      IMPORTANT: If a relative, sibling, or successor of a deceased character appears in the
-      prose, they are a NEW character — do NOT create or update the deceased character's entry
-      based on this relative's traits. Keep the deceased entry exactly as it was.
+      Scan the PASS 1 prose for character death events (these are BUCKET A characters).
+      For each character who DIES in THIS chapter's prose:
+        → Status: DECEASED ({chapter_ref}) — always the CURRENT chapter, never a prior one
+        → Established: [one sentence from PASS 1 describing HOW they died]
+        → Legacy: [one sentence: how their death affects surviving characters this chapter]
+        → Remove all Living Format fields (Location, Physical, Emotional, obligations, etc.)
+      For characters ALREADY deceased in prior state (BUCKET C, absent from prose):
+        → Copy their entry forward UNCHANGED. Do NOT change the chapter number or cause.
+      EXCEPTION — RETCON: If a character was DECEASED in prior state but appears ALIVE in
+        THIS chapter's PASS 1 prose (BUCKET B), use LIVING FORMAT. Prose overrides all.
 
       CRITICAL: Keep total output under 3500 characters. NO prose — structured data only.