ESTATE SOLD HOME AT A LOSS

My client sold her husband's home as admin of the estate. At the time of death, it was their personal residence. I am assuming the Estate inherited the property and sold the home a year later while still in probate.

The sale generated a loss and I am wanting to confirm that the beneficiaries can claim the losses on the K-1 they recieve, correct? I have heard that because they lived in it after it went into probate, there will not be any losses to claim. What is the correct scenario?

Thanks for any advice.

Pattie