When a member of a local guild passed away, guild members went into action following a plan she had set up ahead of time. First members of her guild were allowed to "shop". Then, for many weekends (at leas 6 that I know of) her friends sold her quilting and needlework supplies at her home. Books were $2.00 each, fabric was $2 or $3/yd (they estimated the yardage no cutting), and some items were marked individually. After everything that could be sold in their time frame was sold, representatives of groups doing charity quilting were allowed to take what they could use for free. The money raised, ~$9,000.00, her husband donated to the Heart Fund. Even at those prices, I managed to spend ~$700.00 over two visits. Not only does everything go to those who appreciate it, it makes a wonderful means of celebrating the life of the deceased.
There is a document called the Quilter's Last Will and Testament" that is meant to be a funny/serious statement of where you want your items to go. Even though it is not a legal document, there's no reason, it can't be incorporated into a will or trust.
My daughter used to tease me with the dumpster comments: first the books, then the fabric, then the whales collections. So, now my intentions are in writing, down to who she should contact. They will know what to do, because we have all talked about it. Joyce in Delaware