Tips for talking to kids about death and grief (from KidsHealth.org):
Use simple, clear language. Euphamisms and figures of speech are hard for kids to understand. Be simple, direct and caring and give your child a moment to take in your words.
Listen and comfort, no matter the reaction. Some kids will cry or ask questions while others seem not to react at all. Try to make sure your child doesn't feel like he or she is "wrong" in reacting in any way. Sit together and offer reassurance and answers if needed.
Tell your child what to expect. Outline what will happen next. There might be travel, a funeral or memorial or a change in routine. If the upcoming events are not as much of a surprise, your child may be able to deal with emotions more completely.
Give your child time to heal from the loss. Be sure to have ongoing conversations to see how your child is feeling. Emphasize that healing doesn't mean forgetting and good memories can help us enjoy our future.
Check out these titles to help you start a healthy conversation.