How Does a Will Work Pertaining to Real Estate?

My husband had a Will written when he lost his first wife. Will stated that children were the executors of the Will and entitled to his house/estate if anything should happen to him. Then we got married. He had his Will re-written to specify that I was his spouse and the executor of the Will. My husband and I refinanced our house. All documents show that I am the sole owner of his estate with rights of survivorship. I have since sold the house. My stepdaughter now wants to sue me because she says that I should have given them profits from the sale of this house. I live in New York and believe that the laws indicate a Will is negated with right of spousal survivorship. Can you advise? Does my stepdaughter have any right in this respect? My job at one time was a paralegal and I believe I remember this from that job.