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. In some states, homestead exemptions are automatic and in others they must be declared in writing.Edit, sign, and share arizona homestead online. No need to install software, just go to DocHub, and sign up instantly and for free. Douglas County has additional exemptions. NOTE: Individuals claiming this credit must also complete. Arizona Form 301, Nonrefundable Individual Tax Credits and.