Although Bloodsworth had the asset of his farm and his government salary of £50, he was insolvent when he died from pneumonia on 21 March 1804 at his house on South Row, Sydney. Because of the high regard the settlers had for him, Governor Philip Gidley King ordered that he be given the nearest the young colony could provide to a state funeral. The Sydney Loyal Association escorted the cortège with muffled drums, and the body was laid in the old Sydney burial ground on 23 March, with military honours. He was survived by two sons and two daughters.