Hi. I am so sorry about the situation you were put in with the quite negative outcomes. My condolences and happy to help the best I can.
I feel you should include it. I absolutely understand why you are feeling uncomfortable and a bit awkward about it. I would too. Nobody wants to use/bring up their relatives in that light. However, there are ways to put it on paper in a much better light and from a different perspective.
- Keep it professional and brief without providing too much backstory. It is not relevant.
- Mention that you had to unfortunately had to miss a final for one of the subjects that had impacted your grade.
- Make it a choice and a decision you made. You can say that you have approached your professor about a retake but unfortunately they were not able to extend it but you felt it was more important at that time to be with your family, show your support, and have closure.
So ultimately the focus on the choice and mechanics rather than the emotional side. it can be even as something concise and brief as below. Usually the shorter you make it, the more impactful it is. This would add some depth to your application as well and demonstrate resilience. You don't need to say "I have learned resilience" crap or anything like that. Your facts and examples should say that.
Sample Essay:
During my sophomore Spring and junior Fall semesters, my academic performance was impacted by two family bereavements. These events necessitated my absence from campus for funeral services, including a situation where I had a hard choice between missing the final exam and missing my uncle's service, leading to a Withdrawal noted on my transcript. Despite these interruptions, I maintained a GPA of 3.25 and 3.5 in those semesters respectively, graduating with a 3.79 overall. I have later retaken the course with an "A". I hope my GMAT score of 780 also helps illustrate my focus and committment on my path towards an MBA.