High School Years teacher dying

Never had this in my game, but did not play students actively over time. My Principal did quit her job but still shows up at school like before. I assume the game will spawn a new replacement for your teacher. The grave - depends on how you play. In my game I'd move it to another lot to avoid ghosts breaking all sinks and toilet, but if you like some extra action you could start a small graveyard on the lot. Try adding urn to your student's inventory, then walk to a spot where you want to "place in world". I can think of many funny stories involving a small memorial corner outside the school :)