LKY once said that if he being lowered into his grave and he
sense something is wrong, he will get up ...
Resurrection! The Chosen One has stood up again! 
When LKY passes on, I do not think there would be drastic shifts to
PAP policy, because the cabinet are full of his people and allies,
they will support LHL, who will be aided by senior ministers like
GCT, and maybe later Teo Chee Hean etc. Unless LHL makes a huge
political mistake somewhere, and he can't handle a gathering storm
like LKY handled SIA.
But I think certain policies in Singapore might change faster, the
society might open up faster. Maybe I can expect more streets,
buildings, institutes to be named after LKY. Who knows if they will
build a grand memorial hall like the Chiang Kai Shek one in Taipei?
They build an equivilant of Mount Li for him, thousands of
terrocota PAP members at virgil... They will build a grand museum,
will historical relics, to trace the epic events from
1955-1965.