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Just take her cat to the vets and have it put down there, and if mom asks about her cat, you just tell her that he/she must be hiding in the basement. And you tell her again and again that same answer anytime she asks.
And you can always buy her one of those life like battery operated cats that she can have sit on her lap and will purr when she rubs it.
No. Your mother should not be told and certainly she should not watch.
It never fails to shock me when grown adults have to ask a question like this. Really it does.
Have a Vet check the cat for any illnesses, then take the cat to a local no-kill animal shelter or cat rescue group. Even senior cats find new homes. Many years ago we adopted a 12 year old cat from the shelter. Our current one was 9 when he came here to live.
I thought the idea of it was to do what was in the best interest of mom, but I don't really think doing this at her home was good for her at all