Is the 1099-R issued in your name or your father's? It sounds like your father had a policy that paid the funeral home and they issued the unused portion?
Again, depends on the deed. If you three were owners, your basis would be your third at the value of when you were added to the deed and also 1/6th of the value on the date of your father's passing. Your brother would have the same basis. Split the sales proceed and closing costs in half.
If it was a life estate, it would be the same as the two of you inheriting it and taking the 2024 fair market value.
If you used a Title Company, they should be able to tell you what type of deed it was.
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