DIFFERENCES BETWEEN EQUALIZATION AND REDUCTION, AND THE CONFUSIONS IN THEIR APPLICATION

Entrance

Two of the most debated concepts in inheritance law equalization (restitution/equalization obligation) and reduction (reduction to protect the reserved share) . Both fairness and equality . However, they differ in terms of their legal basis, application conditions, and consequences.

These two concepts, frequently confused by heirs, particularly in litigation, have been extensively discussed in Supreme Court precedents. This article will address the fundamental differences between equalization and reduction, practical problems, and the Supreme Court's approach to the issue.

What is equalization?

Equalization 669 et seq. of the Turkish Civil Code .

• Transfers made by the testator to their descendants during their lifetime are taken into account in the distribution of inheritance.

• The aim is to ensure equality among heirs and to prevent previous donations from affecting the right to a share of the inheritance.

• Equalization applies only legal heirs .

For example, if a deceased person gives a house to one child and money to another, these transfers will be subject to equalization during the inheritance distribution.

What is reduction?

Reduction of inheritance 560 et seq. of the Turkish Civil Code .

• The aim is to protect the rights of heirs entitled to a reserved share.

• If the testator has violated the rights of heirs entitled to a reserved share through their dispositions (will, donation, gift, etc.), these dispositions can be reduced through a reduction lawsuit

• Reduction of inheritance shares can only heirs entitled to a reserved share .

For example, if the testator has bequeathed all of their assets to a third party, heirs entitled to a reserved share can protect their rights by filing a reduction lawsuit.

Key Differences Between Equalization and Reduction

1. Difference in Purpose

   • Equalization aims to ensure equality among heirs.

   • The reduction aims to protect reserved shares.

2. Application Area

   • Equalization relates to inter vivos transfers of property.

   • Reduction comes into play when the reserved share is violated through testamentary or inter vivos dispositions.

3. Rights Holders

   • The equalization applies to all legal heirs.

   • A reduction of the inheritance share can only be claimed by heirs entitled to a reserved share.

4. Legal Basis

   • Equalization: Turkish Civil Code Articles 669 et seq.

   • Reduction: Turkish Civil Code Article 560 et seq.

5. Results

   • In equalization, bequests are taken into account when calculating inheritance shares.

   • In a reduction process, savings exceeding the reserved share are canceled or reduced.

Confusions Encountered in Practice

1. Equalization or Reduction?

The most common problem is that the parties file the wrong lawsuit. For example, an heir might file a reduction lawsuit believing that the donations made to them violated their reserved share , when in fact the situation should be a lawsuit for equalization of inheritance

2. Difficulty in Proving

In equalization, it is important to know when and for what purpose the benefit was given. In reduction, it is necessary to calculate whether the reserved share has been violated. Therefore, expert reports often yield contradictory results.

3. The Exemption Issue

The testator may explicitly exempt the heirs from the equalization provision. However, the lack of clarity in this statement leads to new disputes among the heirs.

4. Statute of Limitations

Reduction of inheritance shares lawsuits to a one-year statute of limitations, while equalization lawsuits are subject to general statutes of limitations. In practice, these periods are often confused.

Equalization and Reduction in Supreme Court Decisions

The Supreme Court has distinguished between equalization and reduction in many of its decisions.

• Supreme Court of Appeals, 1st Civil Chamber, Case No. 2015/3456 E., Decision No. 2017/5829 K.:
  “Transfers made by the testator to descendants are subject to equalization unless otherwise specified. In cases of violation of the reserved share, the provisions regarding reduction of inheritance shares shall apply.”

• The 14th Civil Chamber of the Supreme Court of Appeals, Case No. 2014/1234 E., Decision No. 2016/4567 K.:
  “A reduction lawsuit can be filed by heirs whose reserved share has been violated. It should not be confused with equalization, which aims at equality among legal heirs.”

• Supreme Court Grand Chamber, 2009/7-345 E., 2009/456 K.:
  “In cases where a transfer can be evaluated within the scope of both equalization and reduction, priority is given to the protection of the reserved share.”

Comparative Table

Conclusion

Equalization and reduction are cornerstones of inheritance law, both serving to protect the rights of heirs. However, they differ in their purposes, foundations, and methods of application.

The most common mistake in practice is confusing these two institutions. Choosing the wrong type of lawsuit, missing deadlines, or misinterpreting the exemption clause can lead to the loss of rights for heirs.

Although Supreme Court precedents provide guidance on this matter, it is of great importance for lawyers and heirs to act cautiously, especially to correctly answer the question of "equalization or reduction?" before filing a lawsuit