Much as Aerenal has its living Sibling Kings and the Undying Court, Farlnen has a balance between the living and the dead. The Prince of Farlnen is the living ruler of the isle, and she represents her people in dealings with the other Lhazaar princes. But the true power in Farlnen is an alliance of undead lords and ladies known collectively as the Grim. This shadow court watches the living from estates spread across the Fingerbone Mountains. Only the most accomplished individuals can rise to join the Grim. One must display talent and charisma, learning all that life has to offer before passing to the other side. Although these traditions are similar to those of the Undying Court, the members of the Grim are not as tightly unified as the Deathless and do not share any sort of mystical power.
The lords and ladies of the Grim live in mansions maintained by tithes from the living. Some use their ancient wisdom and mystical power to help their people; others wish to be left to their arcane studies and private pursuits. However, the Grim aren’t the only undead in Farlnen. The members decide who is worthy to join their ranks, but any Bloodsail can earn lesser undead immortality by amassing sufficient wealth. This is the reason the Bloodsails take to the seas as pirates, privateers, or merchants. The price of immortality is paid over time, credited to the accounts of sailors even as it fills the vaults of the Grim.
Source: Eye on Eberron