I would also be honest and just answer questions without being to graphic. Only reason I say this is that very little kids can get real confused if given info which is beyond them. For example my DS aged 4 is very interested in hearing about my dad who died (28 years ago mind you) to the point of obsession sometimes, and in the course of MANY discussions he asked where bodies go so we had a talk about coffins. Well DS aged 3 overheard and the other day said "Poppy Ivan died along time ago so Grandma put him in a die-box as a present".

I know this sounds like I am making a joke but I'm not - but just mean to say little kids take in a lot and it doesn't necessarily freak them out as much as adults think it does.