Upon a persons death, it is commendable to visit their home and pay your condolences and sympathies. This is called Ta'ziyah. However, to participate in a fixed Khatm-e-Qur'an gathering is a not the method shown by Rasoolullah but has unfortunately become a custom and not part of Sharee'ah. If a person wishes to send rewards to the deceased, then by all means he may do so by reciting Qur'an elsewhere, in the Masjid or in his house.
