What is Deceased's Concealment of Assets (Deceased's Fraudulent Transaction)?
What is Deceased's Concealment of Assets?
In practice, "deceased's concealment of assets" most often refers to the testator with the intention of depriving their heirs of their inheritance rights . This behavior cannot be reduced to a single legal concept; however, the most frequently used approach regarding registered immovable properties of fraudulent transfer of assets (deceased's concealment of assets from inheritance).
Inheritance fraud usually occurs when the deceased transfers their immovable property by registering it as a sale (or a contract with consideration, such as lifelong care) in the land registry, even though they actually intended to donate it , thus effectively "vacuuming" the heirs' shares.
Legal Basis: "Genuine Will" and the Logic of Simulation
The main issue in a simulated transaction is that the apparent transaction does not reflect the true intentions of the parties. Article 19 of the Turkish Code of Obligations stipulates that in determining the nature and interpretation of a contract, one must consider the true and shared intention, not the literal wording
In cases involving fraudulent transactions by the deceased, the court doesn't simply look at the "sale" recorded in the land registry; whether the deceased genuinely intended to sell, or whether they merely presented a donation as a sale. Therefore, the claim of "deceased's concealment of assets" is technically of fraudulent transaction and the motive of concealing assets .
How are the conditions for fraudulent transfer of inheritance established in practice?
In practice, the structure of petitions and evidence can be summarized under four headings:
1) A transaction that appears to involve payment
Most common: sale; sometimes a contract for lifelong care or similar reciprocal arrangements.
2) Covert transaction: a donation in reality (gratuitous transfer)
In most cases, the sale price recorded in the land registry is either not paid or symbolic ; however, simply stating "the price was not paid" is not enough. The Supreme Court's practice deduces the deceased's will from the entirety of the situation; even whether the deceased had a "justifiable reason" (care, co-working, special family circumstances) is debated. The Supreme Court's decision of February 19, 2019, serves as an example of this debate, and has been widely discussed in legal doctrine.
3) The motive of concealing assets (the aim of depriving heirs)
This is the "heart" of the case. Did the deceased truly need to sell? What was their relationship with the heirs? Did they leave sufficient property for the other heirs? What were the customs, family dynamics, and the deceased's economic situation? All these questions contribute to the "motive" analysis.
4) The other party's involvement in the collusion
The other party to the transaction (usually a child/relative) must have participated in the transaction knowing the deceased's true intentions. This element is often witness testimonies + the ordinary course of events + evidence of payment/consideration .
Typical Signs That Reveal a "Donation Disguised as a Sale"
In practice, the following evidence strengthens the claim of fraudulent transfer of property by the deceased:
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The sale price was significantly below market value, and there was no banking authorization to prove payment
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The deceased did not have an "economic need" for the sale (regular income, other assets)
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The right to use the property remains with the deceased after the transfer of ownership (no rent, actual possession remains with the deceased)
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The period coincides with the time when the dispute with the heirs began
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The buyer's ability to pay is weak (student/no income, etc.)
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The transfer was done "secretly," kept confidential within the family
When these clues are considered together rather than individually, the motive and collusion are established more convincingly.
Who can file a lawsuit? Is the "reserved share" a requirement?
The most crucial difference in title cancellation and registration lawsuits based on fraudulent transactions by the deceased is this: It is not a requirement to be a reserved heir to be a plaintiff.
The mistake made in practice at this point is: "I don't have a reserved share, I can't file a lawsuit." The correct approach in fraudulent inheritance cases is for the heir to be able to request the cancellation and registration of the title deed in proportion to their inheritance share , independently of the reserved share .
Competent Court: Where to File a Case?
Since lawsuits for the cancellation and registration of title deeds based on fraudulent transactions by the deceased relate to the ownership of the immovable property, the court of the place where the immovable property is located has exclusive jurisdiction according to Article 12 of the Code of Civil Procedure . In terms of jurisdiction, in practice, they are generally heard before the Civil Court of First Instance
Is there a statute of limitations? How true is the saying "It can always be opened"?
In cases of title cancellation and registration based on fraudulent transactions by the deceased, the generally accepted practice is that there is no specific statute of limitations/preclusive period . However, there is a very critical exception: if the legal basis of the immovable property has been established by cadastral survey , the 10-year preclusive period stipulated in Law No. 3402 on Cadastre may come into question. This period and transitional provisions are included in the cadastral legislation.
The Difference Between Fraudulent Transfer of Inheritance and Reduction of Shares Lawsuit
"Deceased's concealment of assets" is not always a case of fraudulent transfer of property by the deceased. Sometimes the transaction is genuinely a donation, and the donation has been formally made; in such cases, reduction of inheritance shares often becomes an issue
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Fraudulent transfer of inheritance: Cancellation and registration of title deed due to fraudulent transaction ; reserved share is not required.
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Reduction lawsuit: This is a lawsuit filed by an heir entitled to a reserved share, seeking a reduction of dispositions that infringe upon their reserved share. Time limits are important in reduction lawsuits: According to Article 571 of the Turkish Civil Code, the lawsuit must be filed within one year, and in any case ten years .
Choosing the correct type of lawsuit determines the outcome of the case. In practice, the same event may be open to both a dispute over fraudulent transfer of inheritance and a dispute over reduction of inheritance shares; in this case, the nature of the event (the type of transaction in the land registry), the true intention of the deceased, and the structure of the evidence are evaluated together.
Evidence and Proof Strategy: These Cases are "Documents + Witnesses + Ordinary Course of Life"
In cases of fraudulent inheritance transactions, written "confessions" are often absent. Therefore, proof requires establishing a strong body of evidence
Documentary evidence
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Land registry records, official deeds, chain of transmission
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Bank statements (was the payment made?)
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Property valuations, tax/fee declarations
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Deceased's income and expense/social security records (is there a need to sell them?)
Witness evidence
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Family relations, statements from the deceased, was there an intention to sell?
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Was the payment made, and who retained control of the property after the transfer?
Expert
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Actual market value (fair price) at the time of transfer
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The magnitude of the price-value difference (not sufficient on its own, but a very effective indicator)
What will be the outcome of the case?
If the court accepts the fraudulent transfer of property by the deceased, the title deed is cancelled due to the fraudulent transfer, and the property is (usually) in the names of the heirs in proportion to their inheritance shares . In some cases, if restitution in kind is not possible, compensation may be considered (especially due to the legal consequences of transfer to third parties and discussions of good faith).
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