I do not know exactly him even have read his post and his thread. so what makes me interested is, what happen with his lending, does he still have to pay?, give it up?.
The lender does not need any further investigation on weather he's death or not as long as repayment is defaulted, he will be tagged, if the family continues with the account and think that having such tag is inappropriate then they will have to check in the purpose for the tag and if they wish, they can make the repayment on his behalf and the tagged will be removed by the lender, this is a simple things to deal with as long as the reference is there to give direction, but dont expect the account to be banned but can only limited to being tagged.