New Zealand Law
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The actions of your eldest daughter is of course theft. She had no right to this money and the circumstances under which she took the money are reprehensible, taking advantage of her mother in this condition. There are two ways to resolve this as I see it. The first would be to complain to the police, but this would mean your daughter would possibly go to jail. As part of the sentence there would be an order for reparation to compel her to pay back the money to her mother. The second way to deal with this, to keep it within the family, would be to get her to sign an agreement acknowledging that she had taken the money and setting out a payment schedule. This would hopefully generate enough money for her mother's funeral, and could be enforced as a civil debt if she defaults, without getting the matter into the court as a criminal matter. The choice is really for your younger daughter, so she must decide what she does in the circumstances