i think you need to explain the basic concept, that grandfather was not well and was always in pain, but now he is happy and is living with the stars.
even when we tell the kids that the person is living with the stars, the idea is that he or she is not really with us anymore, but is in a happy face. i feel it is a good way to help the child cope with the loss without feeling that the dead person is in pain or discomfort somewhere.
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