What team is it for?
Regards,
Shodan
It’s not particularly creepy to me to receive clothing that had been on a corpse - unless you are Jewish, the viewing at the funeral home included embalming, and the jersey probably wasn’t put on without an undershirt anyway. To me, a personalized jersey is too valuable to throw away, bury or incinerate, and the value of the personalization - the name - is only of worth to someone with the same name.
If being a fan of that team was a big enough part of his life that he was buried in its regalia, I’d feel somewhat honored by the gift as a unique way to remember him by.
If it was a jersey I’d ordinarily wear, a team I myself rooted for, I’d wear it on occasion and think of him.
If it was a jersey that I was indifferent to - for a sport I didn’t follow - I’d keep it in a closet most of the time, and rarely wear it on appropriate occasions. For example, I’m not a fan of any particular NFL or NHL team, but someone as kin-close as a cousin to me left me (say) a Patriots jersey, I might wear it for a Super Bowl party if the Patriots were playing in it, in his memory.
If it was a jersey to a team I actively dislike - I won’t bother listing the fortunately short list - I would probably just keep it in my closet. Who knows, things could change, or someday someone else in the family might crop up as a fan of that team, and the jersey could be passed on.
I’d be creeped out by the thought of wearing clothing that had been on a corpse. I’d try and keep my outer composure, and accept it as the honor it was intended to be, but inside, I’d be massively creeped out.
I’d probably run it through the wash a couple of times, then stow it in a zip-lock bag somewhere safe but out of the way until enough time had passed without anyone asking me about it to feel safe in giving it to the local thrift shop.
It would be extremely rude to turn it down. The woman is giving it to you because she wants to honor the dead in some way.
I certainly don’t mind jewelry from the dead - I wear some of my mother’s jewelry - but clothes are a different matter.
Of course it is an honor to get it. Doesn’t mean you have to keep it or wear it though.
I would keep it.
Imagine the worst case scenario. A couple of years have passed by and some young relative has grown up to become a fan of the same team, just like his deceased cousin. And the family has told him that you are the keeper of the sacred family relic - the special team shirt that your dead cousin wore to games, the very shirt that meant so much to him that he was dressed in it at his funeral service. And the family asks you to bring the shirt to a holiday gathering so your young relative and everyone else in the family can remember your dead cousin and have the shirt present as a connection to him.
Do you really want to say “That old rag? I gave it away to the Salvation Army.”
Um no way. My house is not a free storage place even if it is “due to the dead”.
I’d thank her, wash it and wear it.
And tell everyone. It is a great story.
With my luck the dumb cousin would be a Yankees fan, and I stand by my answer. Creeped out in every way. Now, if he just willed it to me and wasn’t wearing it at the viewing my feeling might be different, but per the OP…no. Give it to somebody else. the dead guy will understand.
They do have washing machines nowadays.
Why… just because it smells like a FEMA trailer?
I think people offering this as a solution are only slightly less weirded out by this then the rest of us.
There’s nothing in the OP about the cousin having anything contagious or anything.
I think it’s has more about psychologically washing away the taboo then it is about practical sanitary issues.
To you people that have said the inner you is horrified; Have you ever had to deal with a dead person before? What’s the big deal? How is that different than jewelry that a dead person is wearing at the funeral. You realize a lot of that jewelry doesn’t get buried with them, right? I have a rosary that I bought my mom. At the viewing, it was wrapped in one of her hands. I’d be honored in and out. If the shirt didn’t fit, or I had no interest in wearing it, or keeping it for a memory; then I’d wait some random amount of time until I felt comfortable giving it to charity or throwing it out. Explain to me why the inner you would be freaked out. It’s like you’re afraid of something touching you that touched a dead person? That doesn’t seem very practical.
If he felt that strongly about the jersey, then he should take it with him. 
Haha, it’s all well & good until you get caught giving it back to him in the middle of the night in a cemetery. (Why can’t I ever spell cemetery correctly on the first try?)
Yes I have had to deal with a dead person. No, it’s not rational to not want clothes the dead person was wearing. No, I can’t explain why. Yes, I would take it and pretend to be honored. I’d never wear it though.
Can’t see it bothering me at all. Unless it was a Habs jersey. 
The issue just doesn’t make sense to me: if the family feels that he loved his team so much that they want him to wear his special jersey at the viewing, let him be buried in the jersey. Or have the jersey be draped over the coffin somehow so people can see it. Don’t make the undertakers take him in back and change his clothes before the burial as if he’s a dress-up doll.
[complete and utter hijack]
But then I’m weird about funeral and funeral customs anyway: the grieving family has to pony up big bucks when they’re incredibly distracted to buy an airtight box with all kinds of fancy satin lining and a little pillow so the deceased can decompose in comfort… Gah! Gimme a nice clean cremation or at least a plain, biodegradable pine box any day.
[/complete and utter hijack]
Otherwise, wash the shirt and put it away for a year, then talk to the relative (through an intermediary if necessary) about the appropriateness of being given the shirt. Possibly somebody else would like it, or as someone mentioned it could be kept for a younger relative who will appreciate it more.
This makes a great deal of very good sense. I was going to say, “Fold it and put it in storage forever,” but your idea is better.
I’d be OK with it (if a tad confused, since we weren’t close and also because I do not give shit one about organized sports) and would probably only wear it when appropriate on family occasions.
Not creeped out by it being “removed from a corpse.” I’ve lived in my share of very old houses where people have died and own things dead people have owned before me, not an issue.
I like the idea of finding the bar said cousin frequented, and offering them the shirt all framed nicely.
Hell, ANY sports bar would probably like memorabilia! You don’t have to mention the “worn in the casket” aspect of the shirt.
As to the actual presentation by the cousin’s spouse, you say, “Thank you so much for thinking of me.”
Period.
~VOW