you sell and after that its gone. If there is a house you can a) live in it (by doing so you cut your own families costs by a massive amount) or b) rent it and get a little extra each month.
Once you sell it you pay more taxes. Do you think any of the money you got will go to your kids, or even grandkids? Id say in 80% of all cases it will be long gone before that time comes.
Someone who wants to spend an inheritance is going to do it, whether it’s liquid (cash) or marginally less so (real property)