You may want to see an expert, although it may be too late to change things.
There is a difference between
1. if the estate sold the home, paid the money bequests and donations, and then paid the residual balance to your wife,
2. versus your wife inherited the home, sold it, donated the contents, and paid the nieces.
In #2, @DianeW777 is correct. Your wife inherited the house and contents, and the donation of the contents goes on your tax return, and the payments to the nieces are gifts from your wife and not tax deductible on her tax return.
However, in case #1, the estate needs to file a separate estate tax return to deal with everything. I don't know any more about this and you may need to have your situation reviewed by an expert in your state.
