Last I heard from a member who used it recently, yes it does. She used a poison purposely, which lots of people do often to get a zombie marapet. Her pet was at the gate and she was delighted. :)
It does work. I purposely poisoned a pet, and I ended up with a skeleton Xoi. It doesn't come cheap though, a skeleton pet will cost you 50,000 mp & a ghost 75,000 mp. You have to pay to be able to get your pet out of the graveyard.