This idea is not correct, rather the clothes and belongings of the deceased are part of his estate, and his heirs are entitled to them; they may make use of them or sell them, and they do not have to give them in charity. But if they choose to give them in charity, seeking reward, they may do that, so long as they are adults of sound mind. As for a minor, no one has the right to give his share of these things or others in charity.
Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) was asked: Is it permissible for the family of the deceased to use the clothes of the deceased? He (may Allaah have mercy on him) replied: Yes, if a person dies, everything that he owned becomes the property of his heirs, such as clothing, furniture, books, writing implements, desks, chairs and everything, even his headgear that he was wearing. It all goes to his heirs. When it passes to his heirs, they may dispose of it as they dispose of their own wealth. If they – the heirs – are of sound mind and they decide that the clothes of the deceased are to go to one of them, and he wears them, there is nothing wrong with that. If they agree to give them in charity, there is nothing wrong with that. If they agree to sell them, there is nothing wrong with that. They are their property and they may dispose of it as anyone disposes of his own property. End quote from Fataawa Noor ‘ala al-Darb.
Shaykh Saalih al-Fawzaan (may Allaah preserve him) was asked: Is it permissible to keep the clothes of the deceased, and if that is not permissible, what is the best thing to do with them?
He replied: It is permissible to keep the clothes of the deceased for a family member who can wear them, or to give them to any needy person who will wear them, and they should not be wasted. Whatever the case, they are part of the estate if they are valuable, and they should be counted as part of the estate that belongs to the heirs. Keeping them for memory’s sake is not permissible and is not appropriate, and it may be haraam if the aim is to seek blessing from these clothes and so on. This is also a waste of money, because they should be made use of, not stored without making use of them. End quote from al-Muntaqa, 2/271.
And Allaah knows best.