Should we celebrate festivals in the year after a death?

many families keep festivals simple until the first annual śrāddha, but daily prayer continues.

There is no single rule here; it is a family custom. In many North and Central Indian families, major festivals such as Holī and Dīpāvalī are not celebrated with fanfare for one year after a close death: no new clothes, fireworks or special sweets, and sometimes relatives send sweets to the grieving home instead. Many South Indian families similarly skip festive celebration until the first annual ceremony (varṣika śrāddha or ābdika).

Keeping a festival simple is different from abandoning God. Once the aśauca period is over, the home shrine is opened again and daily lamp, prayer and simple offerings continue. Some families light a single lamp on Dīpāvalī in memory of the departed.

Ask the elders of your family what has been done before. If small children are in the house, many families allow a gentle, low-key celebration for them, which is kind and sensible.

Source: common practice (family custom)

Dharma Q&A — family & life events · Ask a Jyotishi your own question