It is an old-time custom, and a "respect" thing with wiseguys. Nobody wants to die in the street like a dog, left at the gutter.

It's more symbolic than anything. To die in the comfort of your own home, in your own bed, is an optimal way to go, correct? You die with your "shoes off" so to speak.

So even though a guy may get clipped. To have your shoes taken off, and placed beside you is a symbol of that, and it's said "he died with his shoes off" Understand?

Its also like even though you got whacked, the killers respected your memory and who you "were," that they took your shoes off for you.

Its an old Mafia tradition, and a thing among the old-timers.