For example,
I kill my friend
Untill he clicks the respawn button at the death screen, his held item is visible to me
When he has clicked it then it vanishes.

Steps to Reproduce
1. Get a friend to come to your game
2. tell him to hold any item
3. Tell him to not press respawn when he died
4. Kill him
5. If you look below where he died, his held item will be still visible.

Here i have screenshots, below.