You've probably noticed that on every band page we list the band's status. There are six options: active, on hold, split-up, unknown, changed name, and disputed. Typically, it's our policy that a band is listed as "active" unless proven otherwise (i.e. there's an official statement from the band saying that they're taking a break (thus, on hold), have changed their name (self-explanatory), or have decided to call it quits (and therefore split-up)). The "unknown" status is a placeholder, intended only to be used when there hasn't been activity from a band - even in the form of gigs and communication with fans - for a long time. The "disputed" status is for special cases involving band members claiming ownership of a band and deciding to take it in different directions - think Batushka or English Dogs.
When a band member dies, so long as there are other band members, and it's not just a solo project, do not change the band's status from "active". Wait until the band has made a statement about their plans before doing so. Just because a band member has died - even the frontman of the band - it does not necessarily mean the band is immediately over. The remaining band members may choose to keep playing, or take a break, or quit, but give them time to grieve and figure that out first. Sometimes a statement may never be given, but context is important, and we'll have a better sense of the band's status at a later point in time.
This is also true for other circumstances that might impact the lives of band members. Just because a band member may be charged with a crime and/or is incarcerated does not necessarily mean the band is automatically "on hold" or "split-up". The same is true if everyone but one person leaves a band; the band could remain active, you don't know unless the band says otherwise.
In any case, tl;dr: ideally, wait until the band makes a statement on its status before changing its status on MA.
Thank you. \m/