am I over reacting?

so we had a baby girl last November at 23weeks she never left the hospital she had many health issues. my sister In law is pregnant with a little girl an decided it would be a great idea to use my daughters name who passed away 2months ago. I completely flipped out I'm hurt I'm pissed like I want nothing to do with her or her kid now. I'm also pregnant an my mother in law seems to think it's just my hormones but if they where in my shoes they would feel the exact same way! my husband which is her brother told her that was a bad idea an not to do it an she replied yall dont own the name shes using her first an middle name like how are we supposed to feel my husband also to told her that if she dont it he was going to disown them . everyone thinks we are over reacting!