Equalization in Inheritance (Denkleştirme in Turkish Inheritance Law)

Equalization in inheritance, referred to as “denkleştirme” under Turkish inheritance law, ensures fairness in the distribution of an estate among heirs by accounting for prior advancements or benefits received by some heirs during the decedent’s lifetime. This principle is regulated by Articles 669-673 of the Turkish Civil Code (TCC).

1. Purpose of Equalization:

The primary objective is to prevent unfair enrichment by certain heirs at the expense of others. It aims to:

• Include previous transfers, gifts, or advancements made by the deceased to certain heirs into the inheritance calculation.
• Ensure the final inheritance distribution reflects equitable shares among all heirs.

2. Scope of Equalization (TCC Article 669):

1. Who is Subject to Equalization?

   • Only legal heirs in the first degree (children and their descendants) are subject to equalization.
   • Spouses and other statutory heirs are excluded unless explicitly included by the testator.

2. What is Subject to Equalization?

   • Property or monetary advancements given by the deceased during their lifetime intended as part of the inheritance.
   • Transfers such as gifts, land, or significant monetary contributions that are above ordinary or customary amounts.

3. Exclusions:

   • Ordinary gifts or support for basic living, education, or medical needs are not subject to equalization unless otherwise stated by the deceased.

3. Determining the Equalization Value:

1. Valuation Timeframe:

   • The value of the transferred asset is calculated based on its worth at the time of transfer but adjusted for inflation or changes in value at the time of the decedent’s death.

2. Debts and Liabilities:

   • If the advanced property includes liabilities, such as a mortgage, these are deducted from the equalization value.

4. Methods of Equalization:

1. By Inclusion:

   • The value of the prior transfer is added to the total inheritance (estate) before calculating the heirs' shares. The heir who received the advancement must have this amount deducted from their share.

2. By Contribution:

   • The heir who received the advancement contributes the value of the transfer back into the inheritance pool to restore balance.

5. Special Cases in Equalization:

1. Educational Expenses:

   • Extraordinary educational or vocational training costs provided to one heir may be subject to equalization (TCC Article 674).

2. Business or Property Transfers:

   • Assets transferred to heirs for starting a business or acquiring property are included if they significantly exceed ordinary support.

3. Waiver of Equalization:

   • The testator may explicitly waive equalization for certain transfers in their will or inheritance contract.

6. Disputes and Resolution:

1. Evidence and Documentation:

   • Proof of the transfer’s value and intent (e.g., deeds, agreements, or witnesses) is crucial in disputes.

2. Court Intervention:

   • If heirs cannot agree on equalization, the court will determine the adjustments based on available evidence and legal principles.

3. Challenging a Waiver:

   • If a waiver disproportionately affects the reserved shares of other heirs, they may file a reduction (tenkis) lawsuit.

7. Practical Implications of Equalization:

1. Fairness Among Heirs:

   • Equalization prevents disputes by ensuring that previous benefits are accounted for equitably.

2. Prevention of Fraud:

   • It discourages heirs from seeking disproportionate advantages during the decedent’s lifetime.

3. Testator’s Intent:

   • Explicit instructions in wills or inheritance contracts about equalization reduce potential conflicts.

8. Legal Support and Recommendations:

• Detailed Documentation: Keep records of significant transfers made during the testator’s lifetime.
• Professional Advice: Consult legal experts when drafting wills or handling equalization disputes to ensure compliance with Turkish inheritance law.
• Mediation: Resolve disagreements amicably through mediation before resorting to legal action.

Equalization is a vital mechanism in Turkish inheritance law, balancing past financial decisions with fair distribution among heirs. Legal guidance is essential to navigate complex family and financial dynamics effectively.