Steps to setup Master Storge
First use the Keeping items on death deed first
Next steps are to edit what you want to loot. left click on the master storge bag and select options.
next scroll throught loot selectors and select what you want to loot keep in mind you can add to the selections also
if you want to add a itme select Add Single Item
the settings i have mine set to are ass follows
Looting: From list
Deleting: All corpses
Active list Primary
Keep in mind i have alot of items set up on mine so you can loot many types.
Also In the monster Zoo you can add Armor and Weapons to loot in there that will drop from Mobs.