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Dementia is a sad disease. Sometimes being kind and withholding information is the best way to give our loved one a feeling of security and comfort. They need to know they are loved and someone, even if they are losing grasp of who we are, is taking care of things.
It is best to use what are called "therapeutic fibs", like telling Dad "maybe next week" whenever he asks about home. Or saying the homes is being repainted. That will make Dad feel better in the moment, until the next time he will ask.
With my LO, I tried to keep her happy in the moment, give her security, positive re-enforcement, the people here are so kind, things are so nice, food is delicious, etc.
Also, sometimes the questions are a phase and will fade. Eventually, they may not think to ask about things like that. My LO called her room her apt and she liked the way I helped her fix it up. She also thought that she worked at the facility.
I'm sorry for the sadness of your (your?) Dad's situation, but don't worry that you or his other children ought to be telling him the truth about his future care and trying to make him take the information on board - he just can't process and retain that kind of thought.
Instead, talk about how the nice people will be taking care of him until he's "better", and we all just have to wait and see how things turn out. Divert him to other subjects if you possibly can (take photo albums or the daily paper to provide talking points) and when it's time to leave try to hand over to a member of staff and slip out quietly saying you're going to the bathroom, or something like that.
Teepa Snow is just the best when it comes to handling tricky aspects of dementia - you should be able to find her videos online.