Whenever a member changes status, that change is done through entering the corresponding member event (e.g., 'Died' to indicate the member has died.)
New Member Events are entered on the member's events tab, shown below:
Pick the desired new event from the Add Event selector, enter the date, and click 'add'.
Note: the Add Event selector is limited to events that can be entered based on the member's current status and the user's role. (e.g., a deceased member cannot be Expelled.)