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my grandma died a week before I was due, then her birthday was a couple of days after I was due and I ended up having DS 11 Days over due. We wouldn't name our kids after any family member just because they died even if our bub ended up being born on the day my gramdma died or on her birthday. I think it's really nice if people do that though as it can really bring a family together and remind everyone of the loved one that had passed. In our case my grandma was so hoping to see our little guy and then I'm sure everyone wanted our bub to be born on her birthday, but it just wasn't meant to be.
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I was pregnant with DS when DH lost his grandfather, we hadn't picked a middle name at that stage so went with his first name Thomas.
When I lost my father I was pregnant with twins, at that stage I wasn't even thinking names but a lot of people asked if I would be using any of my fathers names, so I guess it's fairly common to do so?
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I know this isnt quite the same but my sister passed on 18 years ago and I decided then that if I had a girl I would use her name. fastforward 15 years and I had my girl Carol rose. On another note my sister had a baby the year after and used her middle name. (I was 10 years younger than her she was 20 at the time)