My condolences for your loss. It’s tough to have to deal with the financial aid implications on top of your grief.
I agree with what everyone has said. I will add this, though … call the school she really wants to attend & have a discussion with a financial aid officer. You won’t know if the school will do anything that could be helpful for you unless you talk to them. If you find out for certain that the asset makes this school unaffordable, at least you will have this important information. You will be able to prepare your child for the fact that this particular school is not going to work out.