I wouldn't do something that dumb, who do you think I am? Don't doubt my originality now! He won't be going crazy nor become any sort of transformation! My ideas are a lot better than that.
Also, quick thought, I still wish that each roleplay had some kind of individual SB/Chat, so people could just OOC and ask questions real-time. Would be cool if impossible.
When it dies it splits into multiple soul fragment kinda things, which can be collected and stored for later, it's body will sometimes dissapear when the soul is absorbed depending on how much anchor it has phsyicaly. Monsters that are larger and powerful rely more on the soul to manifest...
If the creature is killed with something other than the weapons that are able to absorb it, the fragments will reform into a monster eventually.