You can absolutely switch up your wedding invitation wording to include the name of a deceased loved. One tactful and meaningful way to do this is to change the format slightly to accommodate the word "late" in front of your family member’s name. (Beyond the invitation wording, you have plenty of ways to honor a deceased parent during your ceremony and reception.) It can look something like this.
How should I address my invitations? This can get pretty complex pretty quick! Generally, you address the envelopes to an entire family as one entity. You can list out the individual family members on the RSVP card if you feel clarification is needed. The same goes for couples, they receive one invitation addressed to both. Single people are given a nudge to bring a date by simply adding "plus guest" to the end of their name.