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I am sorry to hear of your loss.
The daughters are sadly mistaken if they think they are one of his legal next of kin, unless your Brother had made a Will.
In law, you and your brother are the next of kin, full stop.
Therefore, if your brother has not made a Will, you and your brother will inherit a half share each, and either of you can apply to the Probate Registry to become his Administrator, being th eperson who is entitled to deal with his Estate.
Only if your brother has made a Will, appointing you and the 2 daughters as Executors, do they have any say in his Estate- the Executors of the Will are those people entitled to deal with his Estate, arrange funeral etc.
You therefore really need to establish if your brother made a Will or not.
I hope this assists and sets out the legal position.