TB Menakhot 41 Should the deceased be buried wearing a kosher tallit?

Daf TB Menakhot 41 deliberate whether the mitzvah of tzitzit is incumbent upon the person or incumbent upon the garment. If it pertains to the garment, then every four cornered garment needs to have tzitzit even when it is in storage. If it pertains to a person, then only those garments a person wears needs the tzitzit.

Rambam decides “What is the nature of the obligation of the commandment of tzitzit? Every person who is obligated to fulfill this mitzvah, if he wears a garment requiring tzitzit, should attach tzitzit to it and then wear it. If he wears it without attaching tzitzit to it, he has negated [this] positive commandment. There is, however, no obligation to attach tzitzit to a garment which requires tzitzit, as long as it remains folded in its place, without a person wearing it. It is not that a garment requires [tzitzit]. Rather, the requirement is incumbent on the person [wearing] the garment.” (Mishneh Torah, Sefer Ahava, tzitzit, chapter 3 halakha 10)

The question arises whether shrouds need tzitzit. “Shmuel concedes in the case of an old man, where the garment was made as a shroud in his honor, that the shroud is exempt. What is the reason for this? The Merciful One states in the Torah that one must place ritual fringes on the corners of garments “with which you cover yourself” (Deuteronomy 22:12). This shroud is not made for the purpose of covering oneself.

“The Gemara comments: At that time, i.e., a person’s burial, we certainly affix ritual fringes to the shroud, because otherwise it would be a violation of: “Whoever mocks the poor blasphemes his Maker” (Proverbs 17:5). If we did not place them, it would be mocking the deceased, as if to taunt him that now he is no longer obligated in mitzvot.” (Sefaria.org translation)

Today there are three different traditions concerning bearing the dead with a tallit. According to the Shulkhan Arukh “One buries the dead only in a Talith that has Ẓizith.”

 The Rema gloss for Ashkenazim: Some say that Ẓizith are not required; and the accepted practice is to bury him with Ẓizith, only that one first disqualifies the Ẓizith or one twines around one of the corners [of the Talith].” (Yoreh De’ah, 351:2) (Sefaria.org translation)

The custom in Israel is one doesn’t bury the deceased with a tallit at all. (Gesher Hahayim)