You can put "bound to character" items in shared storage. If you do so those items will be destroyed as part of the transfer process because they can not longer be removed by you. Only the character that is transferring can remove them. This character is gone. I believe the same thing happens to character bound items in shared storage when a character is deleted.
Make sure to move any character bound items from shared storage to vault or personal inventory before the transfer.
Unless stated otherwise, all content in this post is My Personal Opinion.