My condolences on your loss.
What you do with the quilts depends on whether you like the quilts or not. If you like them and would consider using them someday when the pain of seeing them is not quite so immediate, then I would keep them. If you don't like them and wouldn't ever use them, find someone (perhaps in the family) that will appreciate them. The picture quilt is a bit different. It would have no meaning for anyone not in your family. Even if you don't like it, and no-one else wants it today, save it for a while. Just make sure the pictures are marked in some way so that people will know who those pictures are.