have you already told your boss that you had another offer (which I am assuming from them going up another 1k) if so, then despite any other reason to leave (the daughter, the company restructuring etc) you need to leave.
you should never, ever stay someplace that has given you a counteroffer.
it's asking for it. First, they see you as unloyal and you are the first one on the chopping block, you will be hindeered from further raises, etc
I took a counter offer once, and it was a total nightmare. It wasn't work the $6k i got, it was a horrible situation which I stayed in for another 2 years! (which isn't the norm)....