This may be a completely stupid question...but what do you do with the skeletons.....my elders have passed and are just lying there.....please help...

Nikkster, they will decompose within 24 hours (I still haven't personally seen this happenning though).

If you have researched enough in the correct areas though, try taking a villager exploring around the village, and should find a place that will help you

The decomposition process is not very spectacular. The skeletons just . . . go away!