If you want it to go without a head, I'd say make a hood like the jawas have, except have a slight point to the back of it (like Links hat). Maybe some thin, boney fingers with decent length, sharp nails.
As for a weapon, maybe some kind of scythe? Or even a pitchfork of ULTIMATE DOOM...sorry...
here's some advice... if you want to make more scary you need to make it more realistic.
Fist think of the weight of the clothing, the hands of the model are in the middle of the sleeve, when if it was a real clothing the hand would be on the top with the clothing hanging from the hand; the same thing happens with the hood... if there's a head the clothing should be falling from it. The dress it's a little bit big too, make it more slow.
Also when you start with the textures you can make them "rotten" or bloody ( you know silent hill style )...
As a last thing you can add a head, maybe a ghostly face, or a skull face.
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