I would echo Whiffs advice. You have already said no, quite rightly, just stick to your guns.
When my husband died I did split the insurance money between my two sons, so they could each get on the property ladder. Like Whiff and her husband, no one helped my husband and I but thanks to my husbands foresight there was a generous insurance payout. He bought it to ensure his family's financial well being and security. I didn't need it or want it. To me it felt like "blood money" which is how I tend to feel about inheritances in general if I'm honest.
I accept and appreciate the generosity of those who have left me money and am very grateful but I always feel saddened. I would much rather have those people in my life, rather than their money. I like to think that most right minded people feel the same
Clearly your husbands daughter doesn't. She doesn't want you in her life, therefore I see no reason why she should want his/your money either. She can't have it both ways.
I also think she is being rather presumptuous just assuming there IS an inheritance.
My understanding is that no one has a right to an inheritance (at least not under English Law,) rather it is in the gift of the benefactor. In Europe it is different, family does have certain legal rights to a share of the estate and cannot be written out of a will. . Not sure about places like the US.
But my understanding is.......here in England at least, provided that SOME provision is made for adult children then the will cannot be contested. I am further given to understand that that provision could be as little as £1. But I'm skating on thin ice here, so please do you own research.
If indeed that were the case, then I would tell said daughter of course she can have her inheritance early, with my blessing. And she would receive just £1. I would of course change my will too.
Oddly enough the question of inheritance has crossed my mind this week. At the risk of sounding horribly vengeful I do not want my DIL to benefit financially from my death, but by the same reasoning I don't want to punish my son if he remains blameless. Obviously if he turns against me too, then that will be a different matter.
I am not going to do anything rash, I will give the matter some thought and then I will probably see my solicitor to see what can be done, probably some sort of trust.
I would feel no guilt if I had to write my son out of my will if he estranged me, he has had a substantial sum already. Up until this week I wouldn't have dreamed of cutting him out of my will, now I'm not so sure. But as I said I am not going to be rushed, I will take my time and take advice.
I still think that when DIL realised my son owned his own house she saw ££££££££ signs. She is obsessed with money and status. Her spending is terrifying. She calls me cheap and yet, when she invited me out to lunch and promised to pay, her credit card was declined and guess who ended up paying.......
And, just last week, she calmly accepted my generous offer to pay for a takeaway. Never asked what I would like to eat, just ordered what she wanted. Then just two hours later that series of abusive texts began.....
You couldn't make it up.
Like Whiff has said some of our young people do seem to have a grotesque sense of entitlement. Not all of them, I'm sure most of them are lovely. Thankfully my sons never felt that way, they were extremely grateful for their leg up onto the property ladder. However, one does hear some terrible stories of some adult children's greed, avarice and their overwhelming sense of entitlement.
My advice, talk things over with your husband, after all she's his daughter but don't allow her to bully you or your husband into parting with your savings. And certainly do not take equity out of your home. Your need is greater than hers. She's still a young woman, with what sounds like good earning power, thanks to the education you helped fund. Let her work for her dream house.