How the Homestead Allowance Works
Arizona's homestead allowance is a simple financial protection. When someone passes away, the surviving spouse receives $18,000 from the estate. Creditors and other claimants get paid after this amount is set aside.
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 minor and dependent children. Each child receives a share of the total. As a result, the people who relied on the deceased for support get 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 and has priority over all claims against the estate except administration costs. This means creditors, medical bills, and other debts must wait 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 personal representative must set this amount aside before paying other claims.
The allowance is chargeable against any benefit the surviving spouse or minor child receives from the estate. This applies whether the benefit comes through a will, intestate succession, or nonprobate transfer.
This means it is not an extra bonus on top of an inheritance. It comes out of the spouse's or children's share, unless the will says otherwise. A survivorship interest in joint tenancy real estate counts as a nonprobate transfer for this calculation.
This allowance gives families a guaranteed minimum after a death. Combined with the exempt property allowance and family allowance, these protections create a financial safety net during a difficult time.