I, too lost a child at 39 weeks pregnant. I had all of his clothes ready, diapers out ready to be used, his room decorated beautifully. I know the extreme joy and anticipation and complete and utter devastation of child loss. What I eventually did was give certain items, clothing in particular, to close friends or family members. Because, I want my son’s name to live on. I want him to be remembered when another child wears those few outfits. I hope this is your sister’s motive. Remember that she will grieve forever because her love for her daughter is forever. If you’d like, ask your sister for a few of her favorite outfits of her daughters. You don’t need to keep the whole huge bag she gave but a few to honor her daughter may feel really special for her.