Keeping the property can absolutely be the right answer. If the income matters to your household, the property is well located, the management burden is tolerable and the tax cost of change is high, inertia may be rational rather than lazy.
Selling and recognizing the tax can also be the right answer. Complete liquidity, no tenants, no capital expenditures and a clean balance sheet have real value. Some owners simply want to be done, and that's a legitimate outcome rather than a failure of planning.
Repositioning through a properly structured exchange may make sense when the current property no longer matches the goal but real estate still does — more income, less management, a different market, a different asset class, or something a family can hold together more easily.
The family conversation deserves its own attention. Your real estate plan and your estate plan should speak to each other, and your estate-planning attorney and CPA need to be part of that. Current tax law may provide a basis adjustment for inherited property depending on the circumstances; that's for your professionals to evaluate, not for a website to promise.
The framework is the same in every case: understand what you own, define what you want it to accomplish, then choose the structure that fits.