My wife was in the same situation a few years ago - almost exactly the same amount, and from a grandmother's will (but maternal rather than paternal).
In the end we thought it appropriate to get something that would remind us of the old lady and bought a limited edition print and got it framed. We were fortunate to find an etching of a field of cow parsley, which bizarrely enough was one of her favourite plants. The picture looks great, and (though this wasn't the intention) its value has risen well above what we paid as the artist has grown more collectable over the last few years.
In case you're wondering what cow parsley looks like - http://en.wikipedia....iki/Cow_parsley