Mom passed with more debt than assets. What to do?

Talk to a lawyer that deals with wills. You will probably need something in writing to show you are Executor and probably a death certificate as well. After that, liquidate everything, pay taxes and pay outstanding bills. You - as well as everybody else - are not liable for outstanding debt after money is gone.

"I also made the mistake of transferring some funds from her checking account (after she passed) to pay a few of her bills."

Transferred how and to where? If it was her account only (you or someone else was not joint on it), and you transferred it to your account, then oops, that was a booboo. I should think even if you used her bill payer to pay those bills it would be an issue, unless you were on the account as well. If you or someone else was joint, the remaining funds become yours/theirs, per our atty. Additionally, it would be a mistake to pay her bills from your account in any case, even if it was her funds that are used, as now your account would be associated with her debt.

I will be embarking on this new "journey" shortly. First on the list is to get a copy of the death certificate, otherwise I can't do much of anything! The good news is most of what she still had was in a trust fund - that skips probate! The bad news is there will need to be an estate account opened:

* I have to close the SS rep payee account
* Move funds needed to keep the SS rep acct "savings" open to estate acct
(that's all that I kept in that - the SS would pay a small portion of the facility)
* Primary two of us are on, but there wasn't much - kept it low on purpose!
(close it at some point, once the funds are used, incl that savings holder)
* Due to IRS mess, there will be more to come for the 1st stimulus -> estate
* From what I read, anyone alive Jan 1, 2020 gets this new stimulus -> estate
* Refund of deposit for her room in MC -> estate

Atty said there is an abbreviated probate for assets under $25k, which ours will be, and as far as I know all her bills are paid. That info about probate can vary by state, so best to contact someone with experience, atty/tax person? Some states may not have that capability. For me, it's now just a waiting game for now. I need to get DC, various documents needed, get tax ID and open estate account, contact CU regarding the SS rep payee acct (xfer funds/close), provide trust paperwork and DC to trust minders so we can distribute (plan to hold some back, just in case!) I'm sure there will be plenty more things to juggle...

Although 2 of us are named execs, the same 2 were POAs, but guess who has done 99.9% of all the work so far? Place your bets now for who you think will be doing all the above work!!!

Discuss with atty how best to address the remaining debt - some may be more "deserving" of getting paid or there may be a "formula" the courts might use to distribute a percentage to each debt claim. Of course, atty gets paid first...

Your not an Executor until you probate the will. You then get a short certificate giving you the ability to pay bills and get to Moms bank accounts.

Your problem is what bills to pay first.

How does being POA affect the personal finances of the POA?
state is Texas for both parent and sons

My sister died with more debt than assets. She was not married. I talked to a lawyer and he said that neither I nor my parents were legally required to go through the estate process. All of the assets would have gone to the debt holders regardless. She did not have a house or any significant assets. So all I did was call all the credit cards etc. and tell them she was deceased and left it at that. I would talk to a lawyer.

Another thing to do is contact the credit card companies if you haven't already done so and inform them of the death, they will freeze her account so no one else can use them. Do not agree to pay the debt yourself, if there are no funds for payment they will write it off. Same with medical and hospital bills. Just so you know, you may continue to receive explanation of benefits (EOB) from insurance companies long after they pass, dr,hospice, and hospital are able to file/adjust claims for upto 18 months after death, we just received one the other day and MIL passed last November. Went over it to verify that it was for her, was a code adjustment for her orthopedic doc. Keep records and reciepts for everything.

You will be made the Executor and able to create an account in the name of the Estate of your Mother once you get your EIN number from the Internal Revenue service. It took me three months in Covid times, and then I got only a letter saying "Is this for a Trust or Estate. " Take your will to a Trust and Estate Lawyer who will help you to file for probate, to get letters testamentary to act as Executor. You will then go to bank and be added to Mom's account. Keep meticulous records of all expenditures (lawyer included) and bills. And payments made. You will need this for filing final taxes for your Mom and for her estate. Let the Lawyer help and let the Lawyer be the first one paid. Then pay off bills until the money is gone; remaining creditors get a letter that there is no longer any asset in the estate to be distributed to creditors. Be certain never to sign your OWN name on anything other than as executor of the estate.
First step is the Lawyer's office. He or she will guide you. And they can get that EIN online in moments for you.
Know that there is no hurry. It often takes more than a year to settle an estate. Simply tell creditors that the person is deceased and the estate is in the hands of the executor.