How the Homestead Allowance Works
Arizona's homestead allowance is a straightforward financial protection. When someone passes away, the surviving spouse is entitled to $18,000 from the estate before creditors and other claimants get paid. It is one of the first protections the law provides.
A decedent's surviving spouse is entitled to a homestead allowance of $18,000. If there is no surviving spouse each minor child and each dependent child of the decedent are entitled to a homestead allowance of $18,000 divided by the number of minor and dependent children of the decedent.
A.R.S. § 14-2402(A)If there is no surviving spouse, the $18,000 is divided equally among the decedent's minor and dependent children. This ensures that the people who relied on the deceased for support receive at least a baseline level of financial protection.
Priority Over Creditors
One of the most important features of the homestead allowance is its priority. It is exempt from all claims against the estate except administration expenses. That means creditors, medical bills, and other debts must wait in line behind this allowance.
The homestead allowance is exempt from and has priority over all claims against the estate, except expenses of administration.
A.R.S. § 14-2402(B)The allowance is chargeable against any benefit the surviving spouse or children receive from the estate, whether through a will, intestate succession, or nonprobate transfer. That means it is not an additional bonus on top of an inheritance. It comes out of the spouse's or children's share, unless the will specifically says otherwise.
For families concerned about whether a surviving spouse will have immediate financial support after a death, this allowance provides a guaranteed minimum. Combined with the exempt property allowance and family allowance, these protections create a financial safety net during a difficult transition.
