I'm not sure about what tech you need, but you're ahead of me and I'm able to do this...
Do you want an outright "do this!" or just a hint?
To give a HINT - there is a place on the island that villagers can be buried. Once you have dead people you might need someone to visit the burying place and they'll put 2 + 2 together and start burying your dead for you.
As a warning - when I did this my villager who was burying disappeared and has not been seen again. So as a bit of caution you might want to use a villager you don't "care" about just in case. Also, if you don't bury, they will dissolve within 24 hours so it'll stop looking so bad.
Hope this helps!
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Rebecca
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