Strictly speaking, I don’t think the baby Jesus can go to Hell (unless he’s on vacation–or needs a tan). Although, if he could, it’d be the ultimate in bait-and-switch.
“What’s that, Magdalene? Heaven? No, no–the party is down here!”
[sub]Yes, I know that’s not what you meant, but work with me here, will ya’?[/sub]
I suppose “How the hell do I know - do I look dead to you?” is out.
I suppose you could cover it with the three basic options
[ul][li]Heaven/hell in various formats[/li][li]Reincarnation[/li][li]Nothing - you don’t exist after you are dead[/ul] My experience is that, sooner or later, they are going to want to know what you think. [/li]
And, as Mangetout says, shortly after that, they start thinking they already know all the answers.
And, if they ask you, they will also be asking their friends, who will likely give them answers different from yours. Be prepared.
Regards,
Shodan
Watch the movie “Corina Corina” with Whoopi Goldberg. She plays a maid/nanny to a family that I believe is atheists. Without spoiling the movie, the mother in the family dies and the child and father go thru life witout her and have many questions along the way. Corina always has the anwers.
My eldest son is 6 and has started asking pretty deep questions about death and what’s after about two years ago. I’ve generally answered that “some people believe X”. He’s asked about things along a number of avenues, in fact came up with the concept of reincarnation on his own.
I never put a slant on things, but in fairness he’s come to realize on his own that if Daddy says “some people believe” that Daddy doesn’t believe. However, I never put a slant on it.
The only exception I can think of was when we saw the animated “Moses” movie. In this movie (and in fact in the actual stories it’s based on), there are some very extreme things done by god that I can’t take an unbiased third party view of, and give him what I know is the truth, but even then follow it with “some people believe otherwise.” I’m referring specifically to things like god killing the innocent first-born babies of innocent parents just because they happened to be the same race as Pharoah and not Moses.
The only value of my children believing in a god is to further their morality in my eyes, and if they choose to, I’ll be happy for them. Since morality is the key to this, there’s no way I’ll give credence to an immoral god by implying it’s ok.
This is what we call “an opportunity to learn together, wheee!” 
Exploring stuff like this with your kids is a great part of being a parent. She asks a question, you say, “I don’t know. Let’s go to the library and see what we can find out.”
By the time she’s 6 or so, you can take her to various church services to learn about differing beliefs. I enjoyed doing that with my dad (who had been doing it by himself since age 10). Or let her go with her friends if they invite her. Then you can talk about it and discuss the ideas. I’m getting excited just thinking about it…
I’m with everyone that suggests telling it like it is. They may be too young to understand the concept of death, but if explained as a natural part of life they’re more likely to accept it.
It can’t hurt, I don’t think, to explain that different people believe in different things and let them come up with the questions as to what you mean by that. Diving in and trying to teach about the multitude of religious beliefs would just be too confusing. Besides, it’s best to not lay your beliefs on them and let them grow up to believe what they feel is right.
On a side note, a question sparked by the OP’s comments about decepttion and lying ad infinitum, what will you do about Santa and the Tooth Fairy, et al?