Illiquidity and Probate
I don't really have any answers here, but let me tell what I see on the ground with respect to probate estates. Obviously, there's a problem, just like there is with the rest of the economy. The main problem is (no surprise) with real estate and liquidity.
When an individual dies owning a house, the house is usually sold. In this market, that's a difficult proposition. That means the beneficiaries will have to figure out what to do with the house, starting with the payment of taxes and expenses. If Mom dies with a house valued at 200K, and a 100K mortgage, somebody is going to have to make the mortgage payments, keep the utilities turned on, and pay the real estate taxes. Is there money in the estate to do that? Often there isn't. Or, if there is money in the estate, there's not enough to make these payments for months on end.
The other thing about probate is that it takes some time to get going (I think a trust would be the same way, actually). If Mom dies, the beneficiaries grieve, and they try to find time to clean out the house, get things in order, etc. That means it can be 3+ months before someone says, "we need to figure out what to do with the house." Is renting an option? I suppose so, but most beneficiaries don't want to run a business, which is what renting property really is. Are you ready to interview renters, get a lease prepared, monitor the property, make sure repairs are made, etc.? Also, renting means that you really aren't planning to sell the property anytime soon (nobody wants to rent a house that's constantly being shown, or that they'll have to vacate upon sale).
One solution, although an imperfect one, is to rent out the house to a family member. This raises some issues of conflict of interest, but those can be dealt with, especially if all family members understand and agree. If you can find someone to help you break even (a renter willing to essentially pay the monthly mortgage, utilities, and taxes), it may make sense to take that offer.
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