It's a shame that a healthy dog who would likely be adopted by caring people, be euthanized just because the owner wanted to be buried with the dog. I can see if an older person has a very old and sickly dog, who already has a poor quality of life and is in and out of vet offices and hospitals. Then I can understand the owner wanting to make sure that the dog didn't suffer any longer, without her caring for the pet.
My neighbor suddenly died in his home next door to me, he was only in his early 50s, recently got divorced and lived alone with his rescue Chihuahua mix. His daughter stopped by to visit him one night, to find him on the floor, already dead. She called 911, and quickly came over to my house for support from me and my husband. Of course, even though we were already in bed, we got dressed and were there to help.
The daughter was very upset and she worried because she didn't know what to do with his dog. I don't think she could have taken the dog, but I'm not really sure, everything was very emotional with the first responders there, neighbors gathered around, etc. We took the dog into our home right away, although we already had two dogs, but they seemed to be okay with our new visitor.
The dog was sweet, a bit feisty, but housetrained. We didn't think we wanted a third dog, especially with our lifestyle, camping, etc. But I was willing to keep her as long as it took to find her a good forever home, I'd never just stick her in a shelter or kennel unless there was no other choice.
After a couple of weeks, the neighbor's son showed up at our door and said his grandmother wanted to take her, so off she went. Kind of bittersweet because we were growing fond of her. I think my neighbors would do the same for me, there was some discussion after that that we wouldn't let anyone's pet be put in a shelter without trying to find a really caring family for them.
Neighbor's dog on the left.