@MommaTraveler , my understanding of the situation ( based on your post )
1. H owned property abroad;
2. W acquired the property via inheritance;
3. Property was never transferred ( wife chose cash ? ) and therefore disposed of by the Estate;
4. Wife received cash in-lieu of asset.
5. Estate went through probate in the US ; Thus there was an EIN and a 1041 filed ( initial )
Thus I think then easiest would be for the Estate recognize the sale and the distribution --- the asset value stepped up to FMV at the time of demise of the decedent --- via final 1041. And issue K-1s to the inheritors. There is no gain or loss in the disposition of the foreign asset -- for US Tax Purposes.
On your own return for 2023 you filed joint and depending on the situation you may be eligible to file as widow / head-of-Household ( depending on facts ) for 2024. You recognize the K-1 on your 2024 return but it may have no effect .
btw -- which country was the asset located in ?
Is there more I can do for you ?
My condolences on your great Loss .
