What Qualifies as Exempt Property
Arizona's exempt property allowance protects the everyday items a family needs to maintain their household after a loved one passes. The law sets a clear dollar limit and a specific list of qualifying property. This allowance is available at the time of death and applies in addition to the $18,000 homestead allowance.
In addition to the homestead allowance, the decedent's surviving spouse is entitled from the estate to a value that is not more than seven thousand dollars in excess of any security interests in that estate in the following: 1. Household furniture. 2. Automobiles. 3. Furnishings. 4. Appliances. 5. Personal effects.
A.R.S. § 14-2403(A)The $7,000 figure is measured above any outstanding loans or liens on the items. If the family car has a $10,000 loan against it, only the equity above that loan counts toward the allowance. If the selected items do not add up to $7,000, the surviving spouse can claim other estate assets to make up the difference.
Priority and How It Fits With Other Protections
Like the homestead allowance, the exempt property allowance has priority over most claims against the estate. Creditors must wait in line behind this protection. The allowance is chargeable against the surviving spouse's share of the estate, whether that share comes from a will, intestate succession, or nonprobate transfer.
If there is no surviving spouse, the minor and dependent children share this allowance jointly. This ensures that the family's basic household items stay with the people who need them most. Combined with the homestead allowance of $18,000, these protections give families a financial floor during a difficult time.