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About three weeks before my mother passed away at 95, she picked at small amounts of food that often got stuck in her esophagus. Family and I would gently pat her back to move it down to her stomach.
It can often be harmful for someone to eat more than they feel comfortable eating. In a lot of cases, the elderly don't need much to stay alive. If she likes sweets, sweets it is! I tell my mom she gets to eat and drink whatever she wants without regard for health these days. Your grandma may have pain on digesting, or she might choke on food and aspirated it and get pneumonia.
If she's still "with it," try to be respectful of her wishes, even if it seems they're hurting her. If she does have dementia, I'm sorry to say that's a terminal condition, and not eating contributes to the dying process. There's not much you can do in that case.
But you might want to talk with your mom about how to make grandma feeling the happiest and most loved at this time of her life without worrying about calories, you know? We all die eventually, and I wouldn't want my last memories to be of my loved ones irritated or distressed with me because I wasn't eating well. Take care, sweetheart. Let us know how she does.
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