Ellen, I'm not judging, but I am hoping to educate. I can understand the feelings of confusion for MTFs who are attracted to men but haven't yet understood their gender identity. But once you realize you are female, you no longer can say, "I was gay."
Sexual orientation and gender identity are not the same. One does not go from gay to trans. That's like saying saying, "I used to have brown hair, now I'm tall." There is no transition from gay to transgender, just like there's no transition from straight to transgender. I've always been attracted to women. I didn't one day say to myself, "I'm more than straight, I'm transgender."
As for the deceased, she left this life a woman. That's who she always was. Whatever road she took to arrive there doesn't matter. She always felt female and she always was attracted to men. And that makes her a heterosexual woman.