If the parents died and still had children (like a 6 or 11 year old) what would happen to them?

you could either choose to immediately start your new generation (which would make the kids suddenly early 20's) and you pick which one will continue the family line. Or, you could let them play until you run out of money.

Chances are, you can let your child grow up in the house until they've gone to college without worrying terribly much about food or money (unless you have almost none when the parents pass)

There is a very good discussion about this situation in this thread.