Please note that once an individual gets an inheritance they are free to do with it as they wish -- there are no other requirements, but there may be tax considerations.
I'm a little confused by the question. If the family member inherited the house, then he or she can sell it. If the family member is the trustee of an existing trust that the family member is administering on behalf of the trust beneficiaries, then the the proceeds from sale are a trust asset.
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Agree with colleagues. Money received from sale of house is inheritance of individuals who receive the money. Trust may/may not be adviseable. Generally, trust not required unless a specific reason for the trust. I need more facts to competently answer.