Jeffrey's anwser covers the business/team side quite well and there isn't much to add to his solid answer, but I would like to provide an answer on a more emotional level towards the deceased and their family.
I can definitely understand (been in a similar situation about 6 years ago) that you have certain sentiments towards that very much liked and valued team member after 3 years working with him and that you and/or the team feel the need to express those while not being too intrusive.
Attending the funeral is a bit much and would be seen as intrusive by other family members or close friends who might not even know you or the other team-members, but a personal, handwritten condolence letter from the team to the family would be a reasonable and appreciated reaction:
[enter name here] was a great team member and much valued and appreciated by me as well as many others in the team...
You can mention special qualities of the deceased, recall good memories you have of the person, remind the bereaved of their personal strengths. You could also offer help, but be specific. End with a word or phrase of sympathy for the ones who are left behind mourning.
When I was in this situation 6 years ago, we knew that the deceased left behind a wife, two kids and a half-finished house he was currently building - so besides sending a condolence letter signed by almost the whole company, we started a fundraiser within the company to relief the mother of some of her financial burdens, especially in regard to her pre-school kids and the unfinished house.
We were able to raise quite a substantial sum and handed it over to the widow. But again - this was a very special case so that might not apply to the situation of the deceased in question.
Addition in regard to the comments:
The question whether a work colleague should also attend the funeral or even ask about it might depend on the following:
- Association and relation :
- How long have you known and how close were you with the deceased?
- Do you know their family and the deceased close friends?
- Were you involved in private activities with them before?
- Cultural and religious background:
- Is it common regarding the cultural background to invite work colleagues as well?
- Are there any religious aspects in terms of the funeral-process? How do they impact?
- The funeral process itself:
- Were invites or verbal requests/permission sent out to attend the funeral?
- Is it a large and public funeral or a small and private one with only close family-members?
- If invited, how many of the team should attend by the nature of the funeral (size etc.)?
So as already pointed out by @alephzero, this is not just a delicate situation - the decision to ask or to attend a funeral as a work colleague depends on cultural, social and religious aspects that largely vary around the globe and throughout societies.