My mother recently passed away and did not leave an estate. My question is: can one be set up with no assets in it for the purpose of collecting a survivor benefit? The benefit will only be paid to a spouse(none), a child under 25(both children are over 40) or the estate(one does not exsist).

Welcome to AMHD. Yes, you will need to go to the 'probate' court in your mother's last residence. Check this: "What is an 'estate'?

The term "estate" consists of all the property a person owns or controls. This property may be in his or her sole name, held in a partnership, in a joint ownership arrangement, or through a Trust, and all other monies that would be generated on the person's death, such as through life insurance. It includes: http://law.freeadvice.com/estate_planning/estate_planning/what_is_estate.htm