Kim I have experienced this myself with Conor who was 4 when Brett died, he played 'funerals' too and whilist I neither encouraged or discouraged this behviour it too was very sad to this. I spoke to my health visitor about it and she said that it was his way of dealing with Brett's death in a child's way. He stopped after a couple of teddy bears funerals which was relieving but I am still upset as my boys have to grow up knowing about death from a young age.
Another thing that Conor always used to ask me was 'mummy I thought that you onlt die if you are poorly or old, but Brett wasn't poorly and he wasn't old, so why did he die?'

which I ccouldn't answer and even now makes me cry xxx