If he cared enough about his dog that it's passing caused him that much trauma, I think he would love it as a gift. He might get emotional, but would probably use it for the rest of his life.
But yeah, just explain the situation and let him know that if he doesn't want it you take no offense and understand.
http://28.media.tumblr.com/tumblr_lcb35gGx0t1qailr4o1_500.gif
http://www.megavideo.com/?v=57N0YAEJ