EOL said:
How do you handle the situation of a dead characters equipment?
This is a player concern more than a DM one.
Selise; my current character, is one to bury their goods with them but take back and redistribute things that were owned by the party pool.
Party pool is any treasure we find that could have a use towards bettering the group's goals.
Selise brow beats down anyone who wants to start claiming personal items before the threat is removed.
If the PC loot their dead there are things to consider:
From a player point of view your character really should start reconsidering if he sees the 'last wishes' of his friends being violated.
It's a darn good excuse to break up a party.
From a DM point of view you can consider that much of what a character owns will have markings on it of some sort.
Clothing and weapons might have a house insignia or livery depending on social class.
Magic items will almost certainly have identifying marks.
People might recognize these things and wonder why someone who doesn't have a right to them is walking around with them.
This can lead to trouble for the PCs.
In fact it's a great thing to consider for any magic items they might happen to find...
A group of adventurers would do best to negotiate an arangement for this ---before--- they go to the dungeon. People should draft up something like a will. Then if the bodies get looted the other players will have some framework to decided if that was wrong and if so what they feel about it.