Recitation of Surah Yaseen for someone who is on his or her death bed is a common practice that has been reported from some of the Sahaabah. Imam Ahmad has been reported as saying from his Musnad from Safwaan: “ My shaykhs told me that they were with Ghudayf ibn al Harith al Thumani when he was dying. He said: “Can any of you read Surah Yaseen? So Saalih ibn Shurayh al Sakooni recited it, and when he reached the fortieth ayah, Ghudayf passed away. My Shaykhs used to say that when it is recited in the presence of one who is dying, it eases the pain of death.” That was the opinion of Safwaan. ‘Eesaa ibn al Mu’tamir read it for Ibn Mabad (when the latter as dying ) (al –Musnad, 16355)
Shaykh Ibn Uthaymeen said in al Sharh al Mumti fi Ahkaam al Janaaiz: “Surat Yaseen may be recited over him (i.e., the one who is dying) for the one who thinks that the hadith is correct.” He explained that this surah makes the passage of soul easier and because this surah contains good news of Paradise, as in the ayah (interpretation of the meaning): “It was said: ‘Enter Paradise.’…” [Yaseen 36:26] , and because this surah makes the passage of the soul easier.
With regard to reading surah Yaseen for one who has died, there is no sahih hadith to indicate that this should be done. A hadith was narrated by Abu Dawood and others which says “Read Yaseen over your dead”, but this hadith is not sahih because its isnaad contains contradictions and narrators who are unknown (majhool). It was stated by al Allaamah al Albaani in Irwaa’ al-Ghaleel, hadith no.688 that reading Quran over the dead is considered to be bidah (innovation), as he states at the end of his book Ahkaam al-Janaa’iz. Some people organize gatherings in the mosque to read it for the soul of the deceased. Some people think it should be read forty times over the deceased, and some of them may even distribute copies of the Quran among the mourners who gather to offer condolences so that they may read. All of this has no basis in the light of Quran and Sunnah, these are innovated deeds of bidah which should not be practiced, and should be avoided. And Allah is the Source of strength.