I don't know much about dreams but I do know that most "death" dreams are about death of a certain stage, not necessarily a prediction of them actually passing on.

I'd say you're a bit freaked out that your baby is about to turn 2, and its coming out in your dreams as such. 2 can be a big one, they're not a baby anymore, and it just flies from there. I found DS turning 3 really really hard.