Lord Shiva can not create alone without the help of Adi Shakti. This is the essence of various scriptures.
Adi Shankaracharya's Soundarya Lahiri mentions this at the very beginning:
Shivah shakthya yukto yadi bhavati shaktah prabhavitum Na chedevam
devo na khalu kusalah spanditumapi; Atas tvam aradhyam
Hari-Hara-Virinchadibhir api Pranantum stotum ...
Nothing happens after death to the atma which is merely a witness. It is the subtle body that is affected by death. Check Gita 2.17-2.22 for the answer to your question. For example, Gita 2.22 says,
'Just as a man gives up old garments and puts on new ones, so the
embodied self abandons decrepit bodies and assumes new ones.
What happens ...