Equalization of Lifetime Gifts in Turkish Inheritance Law

A father gave his eldest daughter 400,000 TL to open a business five years before he died. His younger son received nothing. When the estate is divided, should both children receive equal shares of whatever remains, or should the earlier transfer be factored in? Turkish inheritance law has a specific mechanism for exactly this question: the equalization of lifetime gifts.

What Is Equalization (Denkleştirme)?

Article 669 of the Turkish Civil Code (TCC) establishes the equalization obligation as follows: statutory heirs are mutually obliged to bring back to the estate, for the purpose of equalization, gratuitous lifetime transfers they received from the deceased on account of their inheritance shares.

The same article goes on to specify that transfers made without consideration to the testator's descendants — including dowries, start-up capital, transfers of assets, and debt releases — are subject to equalization unless the testator expressly indicated otherwise.

In plain terms: if a parent gave one child significantly more than another during their lifetime, the law provides a mechanism to level the playing field when the estate is divided. The earlier transfers are notionally added back to the estate to create a larger calculation base, and then each heir's actual payment from the estate is adjusted accordingly.

Which Transfers Must Be Equalized?

Under the TCC framework, the following transfers are presumed subject to equalization (unless the testator expressly excluded them):

• Dowry or wedding gifts (real estate, jewellery, furniture, etc.)
• Start-up capital for a business or profession
• Transfer of assets (real property, valuable personal property)
• Release of a debt owed by a child to the parent
• Other similar gratuitous transfers to descendants

The following are not subject to equalization under Article 675:

• Ordinary gifts (birthday presents, holiday gifts of customary value)
• Customary wedding expenses within normal limits

Article 672 TCC addresses the case where a transfer exceeded the heir's notional share: if the testator intended the excess as an outright gift rather than an advance on the share, the excess is not subject to equalization — but the testator must have clearly expressed that intention.

How Equalization Works in Practice

Article 671 TCC gives the obligated heir two options:

1. Return in kind: the heir physically returns the transferred asset to the estate
2. Set-off against their share: the value of the transfer is deducted from the heir's portion — even if that means the heir receives nothing from the estate

A crucial point on valuation: Article 673 TCC states that equalization is carried out at the value of the transfer at the time of equalization (i.e., at the time of division), not at the time the gift was made. This means that an asset that has appreciated significantly — say, a plot of land — is counted at its current market value, not its historical cost.

Worked Example

The estate at death: 1,200,000 TL. Two children: Child A received a plot of land (current value 300,000 TL) during the parent's lifetime. Child B received nothing.

• Equalization base: 1,200,000 + 300,000 = 1,500,000 TL
• Each child's notional share: 750,000 TL
• Child A's estate payment: 750,000 − 300,000 = 450,000 TL
• Child B's estate payment: 750,000 TL
• Total: 1,200,000 TL (the actual estate) — the numbers balance correctly.

Equalization vs. Reduction (Tenkis): What Is the Difference?

These two concepts are often confused but serve distinct purposes:

| Feature | Equalization (Denkleştirme) | Reduction (Tenkis) | |---|---|---| | Purpose | Fairness between heirs | Protection of reserved shares | | Who claims | Statutory heirs against each other | Reserved-share heirs against the estate | | Mechanism | Set-off or return of value | Partial reversal of excessive transfers | | Can be excluded? | Yes, by testator's express declaration | No — reserved shares cannot be waived by the testator |

Equalization is about fairness and equal treatment of heirs. Reduction is about protecting mandatory minimum inheritance rights. Both may apply simultaneously in complex estates.

What Happens If an Heir Has Lost Their Inheritance Rights?

Article 670 TCC provides a clear rule for this scenario: if an heir loses their status (for example, because they renounce the inheritance, are declared unworthy, or waive their rights by contract) before or after the estate opens, their equalization obligation passes to the heirs who take their place, in proportion to the increase in their shares.

Equalization and Foreign Nationals in Turkey

Foreign property owners with assets in Turkey may encounter equalization claims when a Turkish estate is divided. This is most relevant when:

• A parent with Turkish real estate made substantially unequal transfers to multiple children during their lifetime
• One beneficiary is a Turkish citizen and others are not, but all share in the Turkish estate
• The timing and value of lifetime gifts made abroad become relevant to the Turkish portion of the estate

Since Turkish law applies to immovable property located in Turkey (under Turkish private international law), equalization claims for Turkish real estate will generally be assessed under the TCC even in cross-border successions. Specialist advice is strongly recommended in these situations.

Frequently Asked Questions

Does every gift from a parent trigger equalization? No. Only transfers that are characterized as advances on an inheritance share, or gratuitous transfers of the types listed in Article 669 TCC (start-up capital, asset transfers, debt releases, etc.), are presumptively subject to equalization. Regular gifts of customary value are not.

What if the transferred asset has lost value? The equalization is calculated at current value at the time of division. If the asset has depreciated, the lower current value is used; gains and losses between heirs are allocated under unjust enrichment principles (Art. 673 TCC).

Can a parent prevent equalization in advance? Yes. The testator can expressly state — in a will or a separate notarized declaration — that a particular transfer is not subject to equalization. Without such a statement, the default presumption applies.

Can an heir refuse to participate in equalization? An heir who refuses equalization can only avoid the obligation by renouncing the entire inheritance. Equalization is a statutory obligation between co-heirs and can be enforced through the courts.

Is equalization the same as reserved share protection? No. They are separate mechanisms with different triggers, claimants, and consequences. An estate dispute may involve both simultaneously.

How Mona Hukuk Can Help

Equalization calculations can become highly complex when they involve assets received many years earlier, multiple heirs with different contribution histories, and cross-border estates. Our lawyers in Antalya advise on inheritance disputes, estate division negotiations, and succession planning — in English, German, Russian, and Turkish — for both Turkish and foreign clients.

Contact us at contact@monahukuk.com or call +90 (242) 606 14 32 to schedule a consultation in Antalya.