How horrible, Kelda.
Sending healing thoughts towards your friend.
I certainly understand your awkward, almost guilty feelings. (Kelda)
As for what to tell a 2 year old? I can't imagine how hard this must be for the parents, on top of their own grief.
But I know that I always took refuge in telling my children about angels in such cases when they were small. No matter whether one self actually believes in a God or angels or whatever, I think there are situations in which children need the comfort of an afterlife and/or of a loving god/angels.