Firstly, I am so sorry for your loss.
I have heard of this happening before and all I know is that the money was refunded..only seemed fair really.
Though not much of a consolation, however a thought...
My sister erected a beautiful lilac tree in memory of her beloved dog. The tree obviously is named after him. Every year he blooms so beautifully and they gather the flowers and place it on their table.
There are other ways of course, but I thought this one in particular was beautiful.