Somoza was dead, his rule had been too vicious and too unpopular both in Nicaragua and in the US to be palatable to be officially backed by the US, even under Reagan, and even if part of the Contras was formed from the former Somoza National Guard. That they formed part of the Contras was something to be downplayed, not something to be endorsed. US military aid to Somoza was ended in 1978, when he fled Nicaragua in 1979, he flew to Miami, Florida but was denied asylum in the US, which is why he went to Paraguay where he was assassinated in 1980.
Somoza was buried in Miami, but from the wiki article on his assassination:
Somoza’s funeral attracted numerous wealthy Nicaraguan and Cuban exiles in South Florida, who protested the left-wing governments of Nicaragua, led by the Sandinista National Liberation Front, and Cuba, led by the Communist Party of Cuba. But some commentators noted that the exiles in Miami were also relieved at Somoza’s death. The newly founded Contra army, which consisted of many ex-members of Somoza’s National Guard, would have had to give the impression of having no relation to the old Somoza regime, for purposes of public relations and world opinion.
The Somoza National Guard was responsible for a laundry list of human rights violations, especially in the last two years of the regime, including widespread murder, torture, rape, and extortion. To give an idea on their activities and connection with the Somoza family,
Even as trusted friends of the family succeeded Luis in the presidency, his brother [Anastasio] remained firmly in control of the National Guard. Eventually, in 1967, Anastasio himself was elected president; Luis soon died of a heart attack, leaving Anastasio in sole control. Without his brother’s technocratic influence, Anastasio’s corrupt ways were unrestrained. The 1972 Nicaragua earthquake, which severely damaged the capital of Managua, brought further evidence of corruption, as members of the National Guard openly looted damaged businesses and misappropriated international aid,[5] and Somoza Debayle’s personal wealth soared during the reconstruction period. In 1974, the growing Sandinista movement FSLN (named after the assassinated Sandino) succeeded in forcing the government to accept an amnesty, after which Somoza Debayle declared a state of siege and the National Guard launched a violent and repressive reaction in the period 1975–76.[5] Though the FSLN was weakened, so was the regime.