Only way to tell what the condition of the engine is in internally is to do a compression test on all cylinders, followed by a leakdown on any suspect ones to ascertain where the leakage is coming from.
That'll take the guessing game out of it.
Good luck (& sorry for your loss).
'89 911 Turbo Cab
Protomotive MAP ECU, Twin Plugged Heads, GT2-EVO CAMs, 3.3L fully finned P&C's, ARP fasteners, C2T head gaskets, Titanium Retainers, Turbo spec valves, springs & guides, 964 splash valves, GT35R BB turbo, GSF Stainless Headers, Magnaflow Exhaust, Full bay Intercooler, TiAL 46mm w/gate, TiAL 50mm BOV, Apexi AVC-R EBC, SPEC Stage3+ Clutch kit, Crane CDI Ignition