The party comes across a nice hermit in the woods. He gives them food and lodging for the night. They awaken to his terrified screams. "East! It's east! Stop it! It'll kill us all!" The poor horror-stricken hermit dies thrashing in agony, one boney arm outstretched, his finger pointing to the east.
A certain patch of forest is well known for causing anyone who ventures into it to suddenly go blind. Once they leave the area their vision returns. Rumors of treasure hidden within.
A possible answer to what happens to spells when a mage dies. If the spell is strong enough, say and enchantment or other permenant effect, part of the mages spirit may become lodged in the magic. It may be a way for items to gain some kind of intelligence, but a mage who has knowledge of this fact would be very hesitant about enchanting anyone or thing. He might have other plans for his afterlife than counting the change in your bag of holding.
Preists, I think, would have this sort of thing covered.