A king should never drop his crown!
This should not happen, the ruler should always keep the crown on him (semi serious, but yea, i saw that 2 times now and its... irritating, especailly given the logo and all lol)
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I believe he should be able to give it to the next in line, so when he/she dies, the one holding it can step up. But that's not the case. It's always a random successor (at least to me). If it's not given to the noble you choose to ne next in line, I think think it should probably be worth a LOT more than just 10 prestige. Maybe a really stupid-high number like 500. That way the leader is almost always at the highest prestige.