I used to be a social worker before I had kids and I went to a wonderful training on How to Talk to Kids About Death. I wish I could remember who the speaker was, but I do remember one specific story she told about this kid she counseled who used to hide in the closet all the time because he was scared after his grandfather died. She had him draw a picture of what was so scary...he colored in the entire paper black, except for a pair of eyes. When she asked him about the picture, he said it was his grandfather "watching over him." So from there, she concluded that was what he was told after his grandfather died, and because he was so young, he took it literally and it freaked him out! Anyways, her point was, don't beat around the bush. Use basic words kids can understand, like death, dead, dying...other phrases we commonly use, like "passed away," "went to a better place," etc., they won't get.