I loved, and I suppose always will love, "At the Back of the North Wind" by George MacDonald. It's not folklore by many means, but was a preacher's way of retelling a story to help his readers cope with grief and loss. Particularly the loss of a young child.
I read it as a child, and it would occur to me much later that this story was truly meant for adults. It also opened up a topic of emotional stability, and how some of us, as humans, grow into adulthood without truly becoming emotionally mature.
I would be happy to share it, if you haven't yet read.