One of my daughters quilts, so she will get all my quilting stuff. She knows this and will keep what she wants and sell/donate the rest. She will probably use a lot of the fabric for Project Linus quilts. Our tastes are somewhat different, so she would use what she wouldn't use in her own quilts for Linus quilts.
I, too, am trying to downsize. It's overwhelming--I have so much "stuff". I've been selling some on eBay and donating. My town has a town-wide garage sale in June. I'm putting together things to (hopefully) sell then. If not, it will be donated.
When my parents and in-laws died, I had to do a lot, but thankfully I had a lot of help.