"If a person passes away, if in thier will, they state to transfer all domains to George, wouldn't that be a legal means of transferring the domains to George? "
In their will they tell *who* to transfer their domains to George?
If, in my will, I instruct that my ashes are to be thrown at my ex-wife, that doesn't mean that someone is obligated to do it.
"The grass cutting example is a service (which would terminate upon death) while a domain is an asset (or at least percieved as an asset). They are different senarios, right?"
Verisign has spent millions of dollars on lawyers who, in all sorts of cases arising from all sorts of circumstances, will argue until their dying day that domain names ARE NOT property of any kind. Your domain name, as far as they are concerned, is simply a consequence of a contract between the registrant and the registrar. The subject of that contract is the provision of domain name registration services by the registrar to the registrant. Indeed, your question goes to the heart of the issue - a domain name, as far as the registrars are concerned, is not an "asset" which you own. Period. Finito. Full Stop.
Now, please, don't take this as conclusive of what a registrar might or might not do, in its discretion, if asked nicely.
But there is no registrar on the planet that is going to open itself up to being dragged into probate battles under the inheritance laws of every jurisdiction on the planet by admitting that these things are subject to wills or intestacy statutes. They are registrars, not global legal scholars.
But, hey, let's say I live a long and happy life, all of my relatives die before me, no next of kin can be located, and I leave no will. Are you suggesting that the registrar is legally obligated to transfer the domain name to the State of Delaware? That's where all of my assets would go in those circumstances.
It just gets too messy for the registrars if you drag in things like government seizures of assets, bankruptcy claims against assets, inheritance laws, and all of the other hundreds of years of legal baggage which attaches to 'property', and then tell the registrars "oh, yeah, you are liable for this in every legal system known to man".