It's not a question of a place ("where?"), but of a spiritual condition!
I quote the Baha'i scriptures:
Thou hast asked Me whether man, as apart from the Prophets of God and His chosen ones, will retain, after his physical death, the self-same individuality, personality, consciousness, and understanding that characterize his life in this world. If this should be the case, how is it, thou hast observed, that whereas such slight injuries to his mental faculties as fainting and severe illness deprive him of his understanding and consciousness, his death, which must involve the decomposition of his body and the dissolution of its elements, is powerless to destroy that understanding and extinguish that consciousness? How can any one imagine that man's consciousness and personality will be maintained, when the very instruments necessary to their existence and function will have completely disintegrated?
Know thou that the soul of man is exalted above, and is independent of all infirmities of body or mind. That a sick person showeth signs of weakness is due to the hindrances that interpose themselves between his soul and his body, for the soul itself remaineth unaffected by any bodily ailments. Consider the light of the lamp. Though an external object may interfere with its radiance, the light itself continueth to shine with undiminished power. In like manner, every malady afflicting the body of man is an impediment that preventeth the soul from manifesting its inherent might and power. When it leaveth the body, however, it will evince such ascendancy, and reveal such influence as no force on earth can equal. Every pure, every refined and sanctified soul will be endowed with tremendous power, and shall rejoice with exceeding gladness.
-- (Baha'u'llah, Gleanings from the Writings of Baha'u'llah, pp. 153-154)
And now concerning thy question whether human souls continue to be conscious one of another after their separation from the body. Know thou that the souls of the people of Baha, who have entered and been established within the Crimson Ark, shall associate and commune intimately one with another, and shall be so closely associated in their lives, their aspirations, their aims and strivings as to be even as one soul. They are indeed the ones who are well-informed, who are keen-sighted, and who are endued with understanding. Thus hath it been decreed by Him Who is the All-Knowing, the All-Wise.
The people of Baha, who are the inmates of the Ark of God, are, one and all, well aware of one another's state and condition, and are united in the bonds of intimacy and fellowship. Such a state, however, must depend upon their faith and their conduct. They that are of the same grade and station are fully aware of one another's capacity, character, accomplishments and merits. They that are of a lower grade, however, are incapable of comprehending adequately the station, or of estimating the merits, of those that rank above them. Each shall receive his share from thy Lord. Blessed is the man that hath turned his face towards God, and walked steadfastly in His love, until his soul hath winged its flight unto God, the Sovereign Lord of all, the Most Powerful, the Ever-Forgiving, the All-Merciful.
The souls of the infidels, however, shall -- and to this I bear witness -- when breathing their last be made aware of the good things that have escaped them, and shall bemoan their plight, and shall humble themselves before God. They shall continue doing so after the separation of their souls from their bodies.
It is clear and evident that all men shall, after their physical death, estimate the worth of their deeds, and realize all that their hands have wrought.
-- (Baha'u'llah, Ibid., pp. 169-171)
And now concerning thy question regarding the soul of man and its survival after death. Know thou of a truth that the soul, after its separation from the body, will continue to progress until it attaineth the presence of God, in a state and condition which neither the revolution of ages and centuries, nor the changes and chances of this world, can alter. It will endure as long as the Kingdom of God, His sovereignty, His dominion and power will endure. It will manifest the signs of God and His attributes, and will reveal His loving kindness and bounty. The movement of My Pen is stilled when it attempteth to befittingly describe the loftiness and glory of so exalted a station. The honor with which the Hand of Mercy will invest the soul is such as no tongue can adequately reveal, nor any other earthly agency describe. Blessed is the soul which, at the hour of its separation from the body, is sanctified from the vain imaginings of the peoples of the world. Such a soul liveth and moveth in accordance with the Will of its Creator, and entereth the all-highest Paradise. The Maids of Heaven, inmates of the loftiest mansions, will circle around it, and the Prophets of God and His chosen ones will seek its companionship. With them that soul will freely converse, and will recount unto them that which it hath been made to endure in the path of God, the Lord of all worlds. If any man be told that which hath been ordained for such a soul in the worlds of God, the Lord of the throne on high and of earth below, his whole being will instantly blaze out in his great longing to attain that most exalted, that sanctified and resplendent station.... The nature of the soul after death can never be described, nor is it meet and permissible to reveal its whole character to the eyes of men. The Prophets and Messengers of God have been sent down for the sole purpose of guiding mankind to the straight Path of Truth. The purpose underlying Their revelation hath been to educate all men, that they may, at the hour of death, ascend, in the utmost purity and sanctity and with absolute detachment, to the throne of the Most High.
-- (Baha'u'llah, Ibid., pp. 155-157)
[continues]