I'm sorry to hear about your loss.
It would be best to make note of the death in the private agent section only of the MLS listing. Of course it should be disclosed to rpsoective buyers as required by law.
Regarding staging, the answer is yes! Staging helps immensely. I've seen it time and time again where buyers have a hard time visualising their things in a space if it's not staged. Also, a great staging job can make the home feel comfortable and give the buyer a sense of "wow, I could be living here!".
Rich Bennett, Realtor
http://www.76-78Prosper.com http://www.LansingStCondo.com http://www.115-117States.com
Zephyr Real Estate
As far as staging...depends on the house, price and area market. Staging is a great tool for de-emphasizing other deficiencies.
Material defects as mentioned below will need to be disclosed, if you know of them, or could have knowledge of them.
I always suggest staging a home even if it is not a full job. Accent tables and lamps here and there, towels and shower curtains and some pictures hung strategically can make a huge difference.
Does the house have new paint and floors, or are you asking if you should do them? this would be a matter of cost vs return on investment. It would also be a question of sellability. Think about your target market...will they have the cash to fix things up after the sale, or will they likely need a home that is move in ready.
Staging will help you hide some of the small cosmetic defects so that buyers don't see a vacant room and every small scratch or dent on the wall.
The link below should provide some guidance as to what is and is not a 'material defect' and the duties of a home seller to disclose them.
I would consider some staging, even if it's just a piece of furniture or two and some fresh flowers. And new paint and floors are absolutely a plus!