You're right, Virgie is next of kin until the baby's paternity can be established. But that doesn't guarantee her or the baby's father (whoever he is) control of the estate. The executor has to be approved by the probate court. Someone who has shown a propensity to self-deal (e.g. Howard Stern) or who is not capable of managing a complex estate (Virgie, probably) might well not be approved. The estate may end up being administered by the public administrator of of the probate court. This will be an interesting one to watch, and I'm enjoying our discussion.
I just asked my mother (she's an attorney) about what would happen to Anna Nicole's estate. After she lectured me about wssting my time being intersted in it in the first place--she told me if the will were probated in Texas the estate would be divided between Daniel's hairs on the paternal and maternal sides. This would mean that half would go to Daniel's father and the other half would be divided between Virgie and Danielynn (if I read the law right a grandparent and a half sibling are considered heirs of co-equal relationship).