My seven year old is asking a lot of questions ever since her grandfather died. What happens when you die? Where do you go? Is it scary? Can you explain death to a seven year old?
Remember when your little brother was born? After being in your mother's tummy for such a long time, he finally came out to be with you and the family. Wasn't it exciting? You'd been waiting for so long to meet him and play with him.
Aren't you glad he was born? Instead of staying inside mummy's tummy, where its warm and he had everything he needed, he came out to be with you. It's good he didn't stay where he was.
In a funny way, the end of life is just like its beginning. Your grandfather moved from this world to another place, where there is a whole family waiting to meet him. All the people who have passed away are living in that place. It is peaceful and happy there. Just like you were waiting for your brother to come and be with you, all those souls were waiting for your grandfather to join them. Now they are all together. We miss them. But there's nothing to be scared of.
And if you want, you can send your grandfather a present. Every time you do something good - listen to your parents, share your toys, give charity, learn Torah - and you think how proud your grandfather would be to see it, then his soul gets a good feeling, a gift from you. Just like he smiled every time you visited him, his soul smiles every time you think: "Grandpa would have loved seeing me do this."
You will miss him, but as long as you keep making him proud, he is with you.