The inventory should include the value of property on the date of death. All items should be listed whether they are designated or not. If items are sold, the funds should go into the estate bank account with the estate FEIN.
After payment of estate administration, creditors, etc., designated items should be given to beneficiaries. The remainder should be distributed per the Will.
Everything has to be inventoried and the designated in the Petition for Final Distribution as going to the people named in the Will. All monies belonging to the estate, including that money from sale of property, must go into the estate bank account and accounted for in the final accounting unless the accounting is waived.
They don't have to be sold but they will have to be equitably distributed. You will also need to ascertain their total value to be included in the final distribution order. If sold, then the money will be put into an estate bank account for distribution.