That is how I interpret it....
"4. At least one of the child's parents was alive at the end of 2017."
"These rules don’t apply if neither of the child’s parents were living at the end of the year."
As long as they did not adopt her. I did some reading on this, the intent of the rule was to avoid wealthy pushing tax to the kids rate, maybe the IRS had a heart and figured if both parents are deceased that is not the motive..