Physically destroying the character sheets of a dead character can be a liberating and cathartic experience. We wholeheartedly recommend it.
Well, okay, with two caveats.
Ripping them up is slightly safer than accidentally setting fire to the house.
And, much more importantly, don't do it if your party includes a high enough level cleric to cast Raise Dead.
Transcript
Yoda: "Monstrous Metal Mastermind Meets his Match!"
Obi-Wan: Well, that's dealt with. I'll go to Naboo now.
[SFX]: climb {Obi-Wan climbs back on to the landing platform}
[SFX]: toss {Obi-Wan tosses aside the blaster}
GM: What? Really?
Obi-Wan: With Grievous dead I have no reason to go back to Coruscant.
Padmé: {aside} Did you just throw away a perfectly good blaster?
GM: Um. You don't want to check what Anakin's up to?
Obi-Wan: Nute Gunray presents the most serious threat now. I fear we've underestimated him.
Padmé: Yeah, go after him. I've got everything under control on Coruscant.
Obi-Wan: None the less... Naboo.
GM: Okay then. Hold on. Let me grieve for a moment here.
Anakin: What are you doing?
GM: I'm just making a funeral pyre for Grievous's character sheet.
R2-D2: That's an awful lot of paper.
GM: ... and his plot development notes.