The Grim Reaper shows up and consults his big book of records and then he uses his cellphone to call down a heavenly beam of transportation to the afterlife. After the sim has gone a tombstone is left behind. The dead sims's ghost will occasionally show up near the tombstone at nights thereafter. If you have NL/OFB you can move tombstones to a community lot graveyard. Otherwise if the ghosts are problem you can sell the gravestones and be done with them for good. If a sim dies of old age in a platinum mood then some ghostly hula girls show up with Grimmy and do an aloha sorta thang and Grimmy hands over some sort of fruity looking cocktail ... afterwards the insurance company sends a message informing you how much money is being left and to whom. There's no payout if the death isn't "natural" ...
I have a related question/observation: After three nights of haunting my ghosts no longer seem to show up. Or maybe it's just more sporadic. Has anyone else noticed this?
Humm, that's weird. Mine are more sporadic. I had one family that had a haunting every night, but certain ghosts would come out certain times. Most nights Andrew would show up and complain about dying. Nights when there was a party or special occasion going on, father Jack would attend, and then scare people and complain about his bed being traded in.
Kiara and BJ Cormier haunt the Legacy House of mine every other Sim day. They like the lawn for some reason. One thing I did notice was that BJ nodded approvingly when he found that his bed was still there...