Okay, the lawyer says the process is not automatic. So, someone has to ask the court to declare the person dead.
As for the property, "that would be a matter of state law" which means that you get to make it up if you're dealing with New Troy. If you're dealing with Kansas you can either look it up or fake it.
The only people who should have the formerly dead person's property would be their heirs or the government if there were taxes paid.
The lawyer wonders if the life insurance company can get their money back.
Have fun!
Oh, and I think you're right about 1986 being pre-DNA testing, at least for routine paternity tests. If they even had the technology then, which I doubt, it would have at least been very expesnsive to to DNA tests.