Does monies from home sale of decedent have to be put back into a trust after the sale of the home by beneficiaries?

Yes, but only until all mortgages and property taxes and any other debts the decedent may have had, as well

as funeral expenses, are paid. Then,any remaining monies can be distributed to the NAMED heirs in the will.

Yes that is correct. If the trust owned the house then the trust owns the proceeds of the sale. Removing a Trustee does not terminate a trust. You will need to read the trust deed to see if/how it can be terminated if that is what you all want.

If you terminate, distributions from the trust will be subject to tax.

the proceeds have to go into the estate before they are split according to the will

Talk to a lawyer, not the boards.