What happens to your possessions and/or your body when you die in die2nite?

Yes. If you die in the World beyond, your possessions do stay on the square where you were eaten. Your fellow citizens can then travel to the square and retrieve them.

If you die in your house, your possessions can also be retrieved (stolen) by other citizens, but your corpse is also left behind, and can wake up and kill everyone if it isn't... taken care of.

Methods of 'taking care of' include, but are not limited to watering, dragging out and barbecuing.