A couple filing jointly with income of 143,253 have a niece living with them since her parents died in Mar 09?

She was the sole beneficiary of 650,000 in life insurance benefits from her parents estate intended to be used as her support and her date of birth is 2/6/2001. The interest on the life insurance is 26,050 of which less than 50% is used for her annual support with the rest being saved for her education. Can they claim her as a dependant?