Whenever a character is killed, all of his or her items are dropped at the very spot that they were slain. If you intend on playing thru the death of a character (as opposed to simply reloading), then you'll want to pick up the dead character's equipment prior to leaving the area.
Items on the ground disappear after a certain amount of fictional in-game time has passed. If you rested any time between your cleric's death and the time when you went back to the location of his untimely demise, odds are the items are gone.