OH poor cat - that just brings tears to my eyes.

In my opinion those people are bringing themselves some REALLY bad karma - firstly by not honouring a dying family member's wishes, and secondly by making a joke of it. I personally would think that the cat would be such a wonderful way to continue to express their love for the deceased.

Is it a no-kill shelter? I suppose at least the cat has you, and other wonderful people like you, to give it some cuddles and attention.