NTA, Emily needed social services back then and now that she's an adult, she needs an event that teaches her to rethink stuff by herself and not through the bias of her parents.

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To he honest, this is all OP's fault. She went low contact instead of no contact with the sister. The woman outrightly said she regretted having the son! When he was just a child! She watched as you, a HIGH SCHOOLER at the time, look after the child! And to add insult to injury, they kicked you BOTH out of the house before you could properly fend for yourself. What does all of that tell you? These are very wicked people! Why would you want your son around those people? Especially when u realized they only reached out when you got the inheritance. Come on... Be smarter than that.