Usually depends on how soon the death was and to an extent the cause of death... A few examples (true ones)...
My nan died two years ago - Nan passed away a few years ago.
My great-grandad died 15 years ago - My great-grandad died 15 years ago.
My friend was murdered 2 years ago - She died 2 years ago.
My friend committed suicide 2 years ago - He died 2 years ago.
Guy in my old army unit died serving in Afghan last year - He was killed last year.
I have no problems saying that all these people have died, but I might change the word depending on who I was talking to and the context of the conversation.
EDIT
The funniest phrasing i've seen comes from Johnny Vegas in Sex lives of the potato men.
A mother and friend of Johnny Vegas's, asks JV to break the news to her 8 year old son that her husband and the boy's father has died in a car crash...
JV: "Hi Tommy"
Tommy: *Looks up smiling*
JV: "Remember how your Dad used to be alive?"
Tommy: *smile fades and nods head*
JV: "Well... He's not anymore..."
Tommy: *Stares and begins to cry*
JV: "Do you want an Ice Cream?
Tommy: *Nods wiping the tears on his face*
That was comedy gold, check out the film if you like proper British black humour...
My nan died two years ago - Nan passed away a few years ago.
My great-grandad died 15 years ago - My great-grandad died 15 years ago.
My friend was murdered 2 years ago - She died 2 years ago.
My friend committed suicide 2 years ago - He died 2 years ago.
Guy in my old army unit died serving in Afghan last year - He was killed last year.
I have no problems saying that all these people have died, but I might change the word depending on who I was talking to and the context of the conversation.
EDIT
The funniest phrasing i've seen comes from Johnny Vegas in Sex lives of the potato men.
A mother and friend of Johnny Vegas's, asks JV to break the news to her 8 year old son that her husband and the boy's father has died in a car crash...
JV: "Hi Tommy"
Tommy: *Looks up smiling*
JV: "Remember how your Dad used to be alive?"
Tommy: *smile fades and nods head*
JV: "Well... He's not anymore..."
Tommy: *Stares and begins to cry*
JV: "Do you want an Ice Cream?
Tommy: *Nods wiping the tears on his face*
That was comedy gold, check out the film if you like proper British black humour...