[fintstone]

My advice would be to not even consider using the money for your daughter's college. It is Apparently she was going to go and had found ways to pay before your wife's inheritance. It is almost a year of pay for you. Help her as much as you can with current earnings (write them off on taxes), but put the inheritance into a retirement account so your daughter does not have to be responsible for you in old age (or pay down your mortgage). It will grow significantly if invested well and when you pass...she will get what is left...just as you did.