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.
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, exempt property rights take priority over nearly all claims against the estate. Only administrative expenses rank higher. This means creditors cannot seize the family's furniture, car, or personal belongings to satisfy debts until this allowance has been satisfied.
Rights to exempt property and assets needed to make up a deficiency of exempt property have priority over all claims against the estate except expenses of administration.
A.R.S. § 14-2403(D)There is a built-in hierarchy among family protections. If the estate is small, the homestead allowance and family allowance are satisfied before the exempt property deficiency is made up. This ensures the most critical financial protections come first.
Together with the homestead allowance and family allowance, these three protections form a safety net that helps surviving families maintain stability during estate settlement. For families with modest estates, understanding these protections can provide meaningful reassurance that basic needs will be covered.
