How to tell a child about the death of a pet

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Do you think that it is better to tell a child about the death of a pet or explain their absense as they must have just ran off? We had a pet die awhile back and my husband insisted on telling her he didn't know where he was, that he must have run off. He thinks this is sparing her feelings. I on the other think that it is best to tell her the truth otherwise she will hold on to the hope that the pet will come home. Also it teaches them about death. What's your view?