I use 'died'.
My Brother rang me once many years ago and said ''we have lost Simon''.
For a minute it left me wondering what my brother was telling me.
Passed away is a gentle way, it has it's place and I would use it in certain circumstances.
I once had to phone a friend and say his Father had 'passed away', and could not have said died.That would have been too harsh for me to say.Esp on the phone.
Having the presence of mind to 'think' before we give such news I believe can make a significant difference.People always remember times when given bad news.
I know that the Police may at times say''We no longer have Ian with us''.
I am not sure if I like it...or....not.
After all, they did not know that person.
It depends on a lot of things, but I do know one thing...it should always be said with compassion.
I have had one given to me like a blow to the head!!! and I nearly fell down in shock.
It would have to be one of life's most hated things to have to say......