Do I lose materia and equipment when I lose a character?

Question

SPOILER: This question involves major plot points of the game.

Now that I know Aeris dies I don't want to give her any equipment or materia because I'm afraid of losing it ... except at this point in the game I'm forced to have her in my party and without equipment/materia she brings my party down.

So I wonder:

Is it possible in Final Fantasy 7 to lose equipment by giving it to a character who leaves/dies? If you can answer for Aeris only it's still much appreciated.

Answer

No, her materia is automatically returned to you. You do lose her weapon and armor, but you get to keep her accessory.

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