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Ibn 'Abbas said: Allah’s Messenger said (Allah bless him and give him peace): “You should acquire white clothes, so that your living ones may wear them, and you can shroud your deceased in them, for they are among the best of your clothes.”
Source: sunnah.com
Other translations
Arabic
حَدَّثَنَا قُتَيْبَةُ بْنُ سَعِيدٍ، قَالَ: حَدَّثَنَا بِشْرُ بْنُ الْمُفَضَّلِ، عَنْ عَبْدِ اللهِ بْنِ عُثْمَانَ بْنِ خُثَيْمٍ، عَنْ سَعِيدِ بْنِ جُبَيْرٍ، عَنِ ابْنِ عَبَّاسٍ، قَالَ: قَالَ رَسُولُ اللهِ صلى الله عليه وسلم: عَلَيْكُمْ بِالْبَيَاضِ مِنَ الثِّيَابِ، لِيَلْبِسْهَا أَحْيَاؤُكُمْ، وَكَفِّنُوا فِيهَا مَوْتَاكُمْ، فَإِنَّهَا مِنْ خِيَارِ ثِيَابِكُمْ.
sunnah.com