Here is an alternative, which enables you to use an option dead to mark that an author has died. It then adds the dagger on the first occurrence of the author's name. This may allow more "logical" markup of the .bib database.
\documentclass{article}
\usepackage{filecontents}
\begin{filecontents}{\jobname.bib}
@book{living,
author = {Last, Alpha},
title = {I'm Alive},
date = {2014}
}
@book{dead,
author = {Last, First},
title = {Dead},
options = {dead},
date = {2014},
}
@book{dead2,
author = {Last, First},
title = {Still Dead},
options = {dead},
date = {2014}
}
@book{notalive,
author = {Last, Last},
title = {Not Alive},
options = {dead},
date = {2014}
}
@book{alive:not,
author = {Last, Last},
title = {Not Alive},
options = {dead},
date = {2014}
}
\end{filecontents}
\usepackage[style=authoryear]{biblatex}
\addbibresource{\jobname.bib}
\newtoggle{riptoggle}
\DeclareEntryOption{dead}[true]{\settoggle{riptoggle}{#1}}
\AtEveryBibitem{\usebibmacro{bbx:dashcheck}
{}
{\iftoggle{riptoggle}
{\textdagger}
{}}}
\begin{document}
\nocite{*}
\printbibliography
\end{document}

biblatex, that's whatsortnameis for.author = {Author, Adam}, sortname = {Smith, John},sorts under 'Smith, John'. You can even override that if you like by adding asortkey = {ZZZZZ}, which would sort it under 'ZZZZZ'. And you can also override that by adding apresortfield... – jon Mar 04 '14 at 15:57nosortoption of biber which is designed for this. See the PDF biber manual as this option has to be set in the biber config file. – PLK Mar 05 '14 at 18:56