“My sister (B) is dying from a stroke. Her daughter is not sure what to do with the house her mother now owns in Anchorage, Alaska. B did not have medical insurance and her bills are quite extensive from the hospital as well as creditors. Can her daughter sell the house and would she need to pay off her mother’s creditors? We are not sure how to advise her on this matter.”
Some creditors would be able to make claims against the property. Almost all would certainly be able to in probate if B passes.
Right now it is unclear if your neice can do anything. If she has power of attorney to dispose of your sister’s property, she can do so in order to obtain funds for her care. If your neice has no particular rights, she might need to ask the court to be appointed guardian of your sister’s affairs. Here is an Alaska self-help page for a lot of information and direction on how to start that process: http://www.state.ak.us/courts/guardianship.htm
There is an emergency procedure in the Alaska law that might apply to your neice’s circumstances.