Nice! This really has the feel of an old-fashioned undead "monster" (and I mean that as a positive) and yet the "old man" thing is an original nuance. I take it you were inspired by some muttering curmudgeon you encountered in your travels? :)
Seamlessly fits into an "army" of various undead, sent against PCs, the white-haired, gray-skinned floating spectral head is a great visual.
Finally, knowing that the head was recently someone's grandpa is a macabre touch. "Noooo! Gramps!!"
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What exactly does "ghost-flame" do?