Hi @jsandage - thanks for chatting with us today and sorry to hear of your loss.
The filing requirement for an estate to file an estate income tax return (Form 1041) is the estate must have gross income in excess of $600. File an Estate Tax Income Tax Return | Internal Revenue Service (irs.gov)
This income could come from sources like bank interest or dividends. It sounds like the house was sold for the stepped-up basis as you stated there was no capital gain. If the estate did not have more than $600 of income from all sources, no tax return needs to be filed for the estate and there is nothing filed with the IRS to report the sale of property or funds being paid out to the heirs.
I hope this information was helpful!
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