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Its a tough call.
I can understand the urge for honesty. But.....I'm not sure that the daughter is ignorant. Perhaps she is not interested in the matter of how much some audio gear is worth? Perhaps she is simply happy that the gear is gone, and to a person who obviously 'knows about these things'. If you treat the gear well, then you treat his memory well.
If the family's clearly in financial hardship, well then its a different issue.
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