Legal Question in Wills and Trusts in Pennsylvania

Since your sister is a named beneficiary on a Life insurance policy the proceeds are hers. Morally she may be obligated if the probate assets are insufficient to pay the expenses but legally the money is hers. The cost of the funeral should come out of the probate estate. Of course if the funds are insufficient the funeral home will look to the party or parties who authorized the various bills.

Mr. Weistein is correct. The life insurance proceeds are not part of the probate estate. You are not personally responsible for paying any of your mother's bills (unless you incurred them or guaranteed them). If there is insifficient money in the estate to cover her bills, you have an insolvent estate. There are specific laws covering insolvent estates. If you follow them perfectly, you will eliminate the possibility of having to personally pay for your mother's debts. I recommend that you speak with an attorney to assist you.