When my husband died in a car accident 10 years ago, I used his flannel shirts to make teddy bears for his children and grandchildren. Most of them were well-worn, some with holes and paint stains, etc. I didn't try to cut around those--he was a carpenter and I figured that since that type of work was part of his life, the teddy bears should reflect that too. The teddy bears were well received and I know they helped the kids--they could hug the bears whenever they wanted to.
My brother and step-father died within 11 days of each other nearly 7 years ago, and I wish I had asked for some of their shirts to be able to make teddy bears too.
I want to express my sincere sympathy for those of you who have lost loved ones, and are trying to deal with their deaths. I have been there, and it can be so devastating. I think using their clothes is a very positive way to keep the "feel" of them alive.