My wife received proceeds from the sale of her deceased father’s house. The house was sold out of his estate. The proceeds were reported on a 1099-S. Do we need to report it on our 2019 return

Whose name and tax ID number is on the 1099-S ... the estate or hers ? 

She is listed as Transferor with her tax ID; the law firm is listed as the Filer

Note that the house was sold in probate with no will.  And there were 7 identified heirs.  So no one took ownership of the house after he died.  The sale proceeds were divided between the heirs. 

So the estate must have sold the home which means the estate needs to file an income tax return to pass along the income/deduction  information to the beneficiaries via a K-1 form.  Whoever was in charge of this sale and the estate needs to file the correct form 1041.