Quoting lolajessup:" So we talked last night about our friend who's dying (see my last post) and when we should tell lylian. ... [snip!] ... I think it's cause it was sudden. So I want her to be prepared this time. But I'm expecting 100 questions for at least a yr."
I would discuss the emotions that she and others may feel and express. You are putting a positive spin on the death (saying that the friend will feel better), but I'd also be sure to discuss how its normal for everyone to still feel sad for a while, and she might want to cry and others might cry, and that's alright, but whenever someone goes away like that, people usually feel sad about it. That way she will be prepared for the emotions she'll witness in others as well as those that she may feel herself.