How is that possible if it said family trust but new wife thinks she should get everything?

A Will or estate disposes of assets that exist at the time of death that are owned by the person who has died. If the asset was placed in a Trust, the Trust owns the property and it goes to whomever the Trust indicates. So you have to find the trust document, see if the property was properly transferred to the Trust, point out to the wife what she has taken that the estate did not own, and sue her if necessary.