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Finding the proper wording for wedding invitations can be complicated, and there are many different wordings that you can choose from. It's great that you want to include your parents' names on the wedding invitation even though they are not hosting the party. When the bride and groom are hosting the wedding, but wish to include the names of their parents, the proper wording is as follows:
daughter of Mr. and Mrs. Daniel Bride
son of Mr. and Mrs. Harold Groom
Request the honor of your presence…etc.
Since your fiancé's mother has passed away, proper etiquette would have you leave her name off of the wedding invitation.