Who Selects the Property
Arizona gives the surviving spouse, adult children, or guardians of minor children the first opportunity to choose which estate property satisfies the homestead allowance and exempt property entitlements. If they do not act within a reasonable time, or if there is no guardian for a minor child, the personal representative steps in and makes those selections.
If the estate is otherwise sufficient, property specifically devised may not be used to satisfy rights to homestead allowance or exempt property. Subject to this restriction, the surviving spouse, guardians of minor children or children who are adults may select property of the estate as homestead allowance and exempt property.
A.R.S. § 14-2405(A)There is an important protection built in: property that was specifically left to someone in the will cannot be used to satisfy these allowances, as long as the estate has enough other assets to cover them. This prevents the allowance from overriding specific gifts the deceased intended to make.
The Family Allowance Cap
The personal representative has the authority to determine the family allowance amount, subject to statutory limits. The cap is $12,000 as a lump sum or $1,000 per month for up to one year. If any interested person disagrees with the selection, determination, or payment, they can petition the court for relief.
The personal representative may determine the family allowance in a lump sum that does not exceed twelve thousand dollars or in periodic installments that do not exceed one thousand dollars per month for one year, and may disburse monies of the estate in payment of the family allowance and any part of the homestead allowance payable in cash.
A.R.S. § 14-2405(C)The personal representative can also execute deeds or other instruments to formally transfer ownership of property taken as homestead allowance or exempt property. This ensures there is a clear paper trail documenting the transfer.