How the Homestead Allowance Works
The homestead allowance is not tied to a specific home or property. It is a flat dollar amount the estate must set aside for the surviving family. It must be paid before most creditor claims. Only estate handling expenses take priority.
If there is no surviving spouse, the $18,000 is divided equally among minor and dependent children. The allowance counts against other shares the spouse or children receive. It is a minimum guarantee, not an extra amount on top of their inheritance.
Why It Matters in Estate Planning
The homestead allowance provides a financial floor for the surviving family. Estate settlement can take a long time. Together with exempt property rights and the family allowance, it forms Arizona's safety net. A properly funded living trust typically bypasses the need for these protections. Trust assets transfer privately and without court involvement.