I think with the personal significance factored in, it makes more sense, but agree that a middle name spot would probably work better.
Sorry for your loss. In that case I think that's really cool. But I would still use it in the middle spot.. I have ties to Scotland - and I think the actual name is really cool - I just couldn't do it in the FN spot. And the whole KK thing puts me off a little as well.
I really don't like country names on people, it sounds silly. And while I like the word Scotland, I would just not do it. Maybe you could be a little more "local", where was she from? Maybe a city/town/village name, a river or a mountain, an island, something like that could be more suitable and more special.
I'm so sorry for your loss, by the way, and I understand that you want to honour her.