I am going to discuss this process from a technical point of view, but I do want to make one specific point first: those "psychics," whether they are famous or unknown, who tell you that there is no judgement or punishment of any kind in the Afterlifeare wrong.
We are rewarded and punished in this life and the next according to our thoughts, words and deeds; see my previous blog about Karma. To think that a child molester, who brutally tortured and killed children and a saintly, spiritual person will experience the same peace and love from Deity at deathis patently absurd and untrue.
Some experience pain and the damage they caused others in life when they die, others experience peace and love. Many are subjected to both.
During the first stage of transition, the soul personality (what we can think of as the 'ego'), sees a multitude of scenes orginating in the subconscious. Such scenes are related to notable events in life and appear as confused impressions lacking any chronological order. The soul freed from the body then perceives its physical body and any people around it. It may be confused and not even realize that it has passed through transition, since this seems more like a dream. If the death was violent one, this is almost always the case.
For mystics this is always peaceful and takes the form of an initiatic dream. Atheists and materialists experience this phase of transition negatively and feel quite distraught when confronted with the situation.
The soul frees itself from the physical body with it's last breath. As noted by my radio guest and Near Death Experience author, Dr. Raymond Moody, this freeing of the soul is ofter perceived by family members who may be present. With the last breath, the silver cord, that connects the soul to the physical body is severed and it goes through a process of "rebirth" on the spiritual plane.
The soul personality is often greeted by loved ones that have passed away previously or even companions from other lives.The second stage of transition is marked by the separation of the soul from the psychic body (yes, as a "living soul" we are comprised of three parts, not two). This takes place around the second or third day after death.
During this time, with the highly evolved souls, they often stay near to grieving family members to reassure them that they are okay and radiate thoughts of love and strength.
The third and final phase of transition involves the soul ascending to the level on the cosmic plane that corresponds to level of it's development achieved on earth. This last phase is always difficult for the materialist to go through. They sometimes refuse to believe they are dead and will remain for a long time near the physical body.
These are the "earthbound" personalities that are often perceived by Psychics and Mediums as ghosts, who suffer from being deprived of their material possessions. Often more advanced mystics can help such earthbound spirits and put an end to such "hauntings." The Psychic Medium can help the stuck personality realize that it has passed and continue it's ascension to the proper cosmic plane.
The soul then takes stock of it's last incarnation and proceeds to judge itself. It makes a retrospect analysis of it's life and the lessons it learned. While judging itself it is inspired by Divine Justice.There for it sees itself as it truly is and clearly perceives the errors committed during life. After pondering them it is assisted by more advanced souls (Masters) in drawing up a plan for it's next incarnation in way that it can compensate for it's short comings and have the best opportunities for spiritual development.