The Arizona homestead exemption is automatic, meaning that no written claim is required. To qualify, you must live in the home as your primary residence.For example, homestead protection acts to exempt a person's residence from bankruptcy proceedings under certain conditions. It involves completing a form and submitting it to the county recorder's office. Homestead Tax Exemption Example. Let's say a surviving spouse chooses to use the homestead exemption for the current tax year. Learn about Arizona's homestead exemption laws, including eligibility, benefits and how they protect your home from creditors in estate planning. The Department recognizes three categories of property tax exemption: General. Restricted, and Individual. A homestead exemption is a legal provision that shields a home from some creditors following the death of a homeowner's spouse or the declaration of bankruptcy.
