It is difficult when someone asks for information that may be too much for them to understand or accept- for example, when a nursing home resident asks "When can I go home?" or when they are looking to visit with someone from their past, decades after that person has died. Response is delicate and depends on how that person has dealt with difficult information in their lifetime, balanced with, "will this new information be helpful?"
I believe that we should treat others the way we would like to be treated, so to put ourselves in the shoes of another is a good guideline. It's not about us and "being honest." It's about offering the kindest, most gentle path to someone we love.
Seeking home may be about enjoying some of the comforts of home- their favorite quilt, the smell of hubby's cigars from his favorite sweater, photos of those they've loved, and their favorite tea cup. New things aren't always better - things that are familiar are the things that feel like home.
If your loved one is seeking to see someone who has passed, try to recognize what it is that they are seeking. It may be to remember the kindness shown to them by their parent. To ask "Tell me about your mother" may evoke memories that bring contentment. They may be seeking relaxation through a good cookie and a cup of tea, as they used to share with their parent or spouse. Gentle kindness and comfort foods can enhance any day, at any point of life.
All we have is a given moment. Keep that in mind in the connection, amid all the questions. "What will help my loved one in this moment?" and connect with care and love.