Is it permissible to eat at the home of the deceased's relatives if they are not in the same city as the deceased?

It is not from the Sunnah for the family of the deceased to prepare food for people to gather around, unless it is for entertaining a guest. The Companions considered gathering at the home of the deceased and preparing food after burial to be a form of wailing (niyaha). It is forbidden to prepare banquets from the inheritance of the deceased if there are orphans among the heirs, because that is an encroachment upon their wealth.