I'm so sorry you lost your husband. And I'm also sorry if my advice seems hurtful to you, but I'm so astonished you don't seem to have seen this for yourself that I'm going to spell it out for you.
1) Your DD sounds very greedy. She's already had thousands of pounds from you, but she wants you to leave all you have to her? Of course your son would be hurt! And as your DD is being so grasping, I wouldn't put much faith in her words about "seeing her brother and his kids right".
2) I pity your DIL. For 20 years she's been married to a man, whose 2 children she's borne and brought up, and as they're still married I assume she's made him happy, but her FIL - you don't mention your own feelings towards her - never for a moment counted her as family. That's just harsh.
3) The money is now yours. Your DD has no say in how you spend, save, or leave it in your will. She's very mouthy about what her father would have wanted - what about what her MOTHER wants? Does that not matter?
If, as I hope is the case, you love your son at least as much as you love your DD then please, please, accept that he and your DIL are a family unit, and to discriminate against him because of a paranoid and to be frank, rather ugly assumption, that she'll leave and take him to the cleaners would be very wrong and unkind.
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