My father in law died when my daughter was about two years old. he adored her and she him. Facing death head on with her was the only option. We basically told her that Pop Pop had died, he was gone and he wouldn't be back. We have often told her how much he loved her, that we are all sad that he is gone and that we all value the fact that they had time to be together. When she has asked where he has gone we have told her that we believe that he hasn't gone anywhere, he is no more. We also tell her that Pop Pop believed he was going somewhere else called heaven. This doesn't throw her for as bad a loop as you might think, I try let her know that different people believe different things and that all the things we believe might not always be true. She makes up stories about family member she has never met or that are dead. I think it's a good thing generally. The thing that chokes me up... The other day she told my wife that she can't remember Pop Pop very well anymore. She doesn't tell the same stories that she used to tell about the time they spent together. Someday, probably not long from now, due to the vagaries of children's memories, Pop Pop will just be the guy in the pictures. IT makes me sad, he was a kind, gentle and loving man.