Yes, you are correct. The cost basis to the beneficiary is the fair market value (FMV) on the date of death. I would see of you could find another value to be sure you are using the correct amount. Sometimes appraisals are higher than FMV.
Once you are satisfied with the correct value, file it on your return as an inherited investment sale. The IRS will use the information you have for how you arrived at the correct FMV, however we cannot guarantee their acceptance.
The estate doesn't really own the asset, your spouse owns it so I would report it on your return for 2023. An estate return will only be filed if there is at least $600 of earnings after death and before distribution of the assets. There is also 'distributable net income requirements' so you should check with the person or company that is handling the estate.
FMV = What a willing buyer would pay a willing seller and neither having a reason to buy or sell. This is the 'tax lingo' definition.
Follow the instructions in the link below and follow the 'Personal Items'. Be sure to select 'inherited' because TurboTax knows that this is always long term holding period. Keep in mind that a personal loss is limited to $3,000 per year against other income and you may have a capital loss carryover if you have no other profitable investment sales.
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