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When my dad died and my mother was alive and healthy there was no question in my mind who had dibs on the entire estate..... my mother.
Being appointed as the executor, I went through the probate process for her and it worked very well. It sounds like your grand-dad handed off the responsibility to your grandmother (unintentionally) to disperse the estate as she sees fit. In my case, the entire estate went to my mother and she dispersed the estate when she passed. Clean and simple, you are not going to please everyone, but inheritances are gifts, not rights. When the shock has diminished I would encourage your grandmother to do a will to minimize the acrimony later. It's a challenging time and my condolences to you and your family.
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