Don't feel too bad, cindy, I was pretty much in shock myself. Although I'm the type that gets totally quiet at times like that instead of shouting, but it was upsetting to me as well.
Geminoz6, the first time that happened to me, I was left with a very depressed widow. I tried for a while to get her to cheer up and then I thought -- Oh, I know, I'll have one of her kids move back in with her and be with her until she passes on.
Nope -- I found out the same thing you did and was not very happy about it either. I guess it's because the new generation has to use the only double bed in the game and that might have been a bit odd -- having Grandma go sleep in the kiddy room.