Here's a thing, at the end of the day $60 isn't much money, but its a policy. I know at times certain type of photography involves a slight personal relationship, so you feel inclined to be a human, but this wouldn't fly in any other resident or business.
It's not a dick move if you move forward and keep the $60, if she spreads bad about you, big deal, her peers are probably just like her.
It's a time thing, maybe you would or wouldn't have booked appointments in her allotted time, but you did take time out of your day, or build your schedule around this shoot. Perhaps you could have been doing something more productive, perhaps you didn't have a shoot planned but you may have missed an opportunity to meet an individual, its the price she has to pay. If she needs $60 is a deal breaker between her attending a funeral then well, she honestly shouldn't be going.
Be stern, but be respectful...
"Hey sorry about your loss, I understand how things can get at times, unfortunately I won't be able to refund the money due to my policy. What I can do for you is keep the $60 as a credit, and perhaps we can reschedule in the future."
If the future ever happens, I'd make her pay me up front for any work I was about to do just so you wouldn't be further waisting your time. Again you're a business, no matter how great you are you will never be a 5 star business... Thats why the most expensive restaurants are 4 stars... There's always going to be one unhappy client.