Explaining Death to a 3 year old

Last night we had a relief society activity - that went rather well, if I do say so myself ;) At that activity I learned of the death of our favorite neighbor.
Blanche Tucker lived on the corner of Main Street and Carter (only one house between hers and ours) She was very active in the church and served in the library.
Whenever Ryan and I were teaching lessons we'd go ask her for pictures or videos and were always surprised at how quickly she could find them!
Nearly every Sunday she'd see me with a crying child in my arms and she'd give me a knowing smile and say "It must be nap time."
She still drove her blue car - we were never sure it was a good idea, and always gave her plenty of room when we saw her coming - but she never drove more than 15 mph - she'd always wave as she drove by.
When I was pregnant with Oran I was put on bed rest, in those 3 weeks she stopped by 5 or 6 times to visit. Since that time she's walked to our house to say hello every couple of weeks.
We were always surprised with her dedication to keeping her yard beautiful, we'd see her out working in her yard in her large brimmed hat and over sized gloves and could help but smile.
Blanche's granddaughter, Helen, is a good friend of ours and she'd often ask us how her grandma was doing, and if we could keep and eye on her. She'd fallen a few times, but didn't want anyone to know. Her son-in-law came and put a ramp on the front of the house, but she was stubbornly independent and wouldn't use it. After the ramp we'd see her exiting her house, and walking down the steps on the side of the house.
She was spunky and my kids really liked her.
This morning before preschool I was telling Canton what had happened, and he wouldn't believe me! He kept telling me I was wrong. "The Great-Grandma from church isn't dead!" He insisted, "I saw her at church, she smiled at me and she was ALIVE!!!"
In a clam voice I tried to tell him that she went to live with Heavenly Father, and she left after we saw her last. But the more I tried to reason with him the more upset and argumentative he got.
I decided to let the matter drop and we finished getting ready for school. As we walked out the door he pointed down the street to the blue, frost covered car and said - "There's Great-Grandma's car! She still lives in her house, and she really loves me!"
Oh well, I guess he can think what he wants.

Here's the obituary:
Blanche V. Tucker, 86, Pocatello, died Sunday morning, February 15, 2009 at her home.
She was born on May 24, 1922 at Bliss, Idaho to Henry and Blanche Thayer Hite where Blanche attended schools. She married Wilbur V. Tucker on October 6, 1940. Their marriage was later solemnized in the Idaho Falls L.D.S. Temple. Wilbur preceded her in death on April 8, 1989. Blanche was Co-Owner with her husband of Tucker’s Appliance Service Center. In 1985 they sold the business to their son, Doug. She loved and enjoyed traveling and was always kind and giving to her neighbors, her children and grandchildren and to all those she met. Blanche was a member of the Church of Jesus Christ of Latter-Day Saints and served as the Ward Librarian for 40 years.
She is survived by two sons, Richard A. and Douglas D. Tucker; one daughter, Linda L. Misner, all of Pocatello . Nine Grandchildren and Six Great Grandchildren. A brother, Ralph Hite, Pocatello; three sisters, Rosie Lish, Pocatello; Myrtle Lish, King Hill; and Louise Newbern, Pocatello. She was preceded in death besides her husband, by her parents, a grandson, Willie Misner and a brother Donald.
Funeral services will be held on Friday, February 20, 2009 at 2:00 p.m. in the City Creek L.D.S. Ward Chapel with Bishop John Higgins conducting. The family will receive friends from 7-9 p.m. Thursday evening in the Cornelison-Henderson Funeral Home and from 1:00 - 1:45 p.m. at the Church on Friday. Burial will be in the Mountain View Cemetery, Pocatello. Memorials may be given in Blanche’s memory to the Bannock Humane Society, 850 Barton Road, Pocatello, Idaho 83204. Arrangements are under the direction of the Cornelison ~ Henderson Funeral Home, 431 N. 15th Ave., Pocatello. Online guest book and condolences available at www.cornelisonfh.com.