DD Birthday party - death of a family member?

DH and I are really confused as what to do. DH's nan passed away on Friday night and her funeral is 10.30 on Friday. We were having a simple afternoon tea for DD's 3rd birthday at a park but we are not sure if we should go ahead or cancel it.
We are feeling really disrepectful planning a birthday party while his family are planning his nan's funeral. Plus we don't want people to feel pressured to come to a party the day after they bury their mum, nan and great nan. We can't even bring ourselves to mention it and ask if they want to come or us cancel it.
DD is young enough not to remember not having a party and we would still have a birthday cake and make a big deal of it at home.
We need some opinions from the outside. So what do you think is it disrepectful to have her party? So should we go ahead or cancel it?
TIA,
Dan.

P.S. We can't postpone it due to family issues so that is out too.

oh sorry for your loss.
I was going to say post pone, but then I kept reading :)
I don't think it's disrespectful, but I thought maybe still have it and if they ok to attend, then so be it, but if not and no one comes, you're still having a picnic in the park? Are there others invited that aren't from DH's family?

If it was me, I'd cancel it and do something amongst yourselves at home.

i dont know its a bit of a sticky situation! but IMO i would go ahead with it, after all it is your DD's bday and she deserves to still be reconized. I think if you just let family know your plans and remind them not be feel obliged (sp?) to come all should be fine. (i hope)
Some might accually like it, get there minds off it and enjoy being around family.
After all your DD is still a family member. Just dont be offended if they dont turn up :)

Good luck with your choice and wish your DD a happy bday :p