Reduction Action
The invalidation of certain dispositions made by the decedent (testator) upon death and between living persons to the extent that they infringe upon the reserved shares of the reserved heirs (i.e., exceed the testator’s disposal ratio); in other words, if an obligation to perform has arisen from these acts, reduction means deciding that the reserved heirs are released from this obligation to perform or, if it has been performed, that it be returned in that proportion (TMK Art. 560).
As a rule, a reduction of inheritance lawsuit is a lawsuit in which heirs with reserved shares, and exceptionally the creditors of these heirs, request the court to invalidate the portion of the will that exceeds the testator’s disposal ratio. A reduction of inheritance lawsuit can only be filed after the death of the testator. Even if it is certain that a gift made by the testator during their lifetime infringes on reserved shares and will cause irreparable damage if the testator’s death is awaited, the reserved heirs still cannot file a reduction action. They cannot request any provisional measures for any reason. In short, the rights of the heirs are contingent upon the death of the testator.
Who Can File a Reduction Lawsuit?
Reserved Shares Belonging to Heirs and Reduction Lawsuits
According to the Civil Code, as a rule, a reduction lawsuit can only be filed by heirs who are entitled to a reserved share. As mentioned above, heirs entitled to a reserved share are the deceased’s descendants, parents, and spouse.
The right to file a reduction action is a right that protects each of the heirs with reserved shares; therefore, neither the representative appointed to the estate nor the executor of the will (the estate administrator) has the authority to file this action.
Each reserved share heir may file the lawsuit independently of the others. Although the amount of the infringement on the disposal ratio is calculated taking into account all reserved shares, the reserved share of the heir filing the lawsuit is not subject to the entire deductible amount, but only to the deductible amount. In other words, reserved share heirs who do not file a lawsuit cannot benefit from this reduction decision.
If the heir is a beneficiary with a reserved share but lacks legal capacity, their legal representative files the reduction lawsuit on their behalf. If they fail to do so, they become liable under the provisions regarding the liability of the guardian or trustee.
Creditors of Heirs with Reserved Shares and the Bankruptcy Estate
As stated above, as a rule, only reserved share heirs can file a reduction lawsuit. However, creditors of reserved share heirs have the right to file this lawsuit if the reserved share heirs do not file a reduction lawsuit. The purpose here is to ensure that creditors can collect their claims. However, they may file this lawsuit if they have a bankruptcy certificate relating to the reserved share heir to whom they are creditors. The bankruptcy certificate must have been issued on the date the estate was opened. If the bankruptcy certificate was obtained after the estate was opened, they cannot file a reduction lawsuit even if a court decision or enforcement proceedings have been initiated against the debtor.
If the debtor has gone bankrupt, the bankruptcy estate has the right to file a reduction action in this case. Creditors and the bankruptcy estate may give the heir with a reserved share a period of time to file a reduction action, and if this period is unsuccessful, they may file the reduction action themselves. This period must be reasonable, or if it is clear that granting a period would be meaningless, the creditor or the bankruptcy estate may file a reduction action directly.
Creditors may only claim a reduction in inheritance proceedings equal to their own claims. Similarly, if the heir with a reserved share delays and fails to pursue a reduction action brought with the intent to harm creditors, the creditors may prove this and file a reduction action themselves. Similarly, if the heir with a reserved share is disinherited by the testator, creditors may request the annulment of the disinheritance for the portion of the reserved share equal to their claims.
Against Whom is the Reduction Action Filed?
In an inheritance reduction action, the defendants are persons who exceed the testator’s power of disposal, infringe upon reserved shares, and make transfers subject to reduction by law. These may be third parties or heirs. If the testator has died, the heirs become the defendants. If the inheritance is left to more than one person and to different persons, there will be more than one defendant. The heir has the right to file a lawsuit against all of them, but is not obliged to do so. However, they must bear the consequences of this.
In reduction actions, inheritance law rules may lead to adverse outcomes.
As a rule, reduction actions may be brought against persons who have received gifts. However, the Court of Cassation has accepted that, as an exception, such an action may be brought against third parties to whom the gifted property has been transferred. Here, if, after the transfer made by the testator to eliminate the reserved share rules, the testator transfers the immovable property to third parties who are aware of the situation, outside the knowledge and instructions of the testator, with the aim of depriving the reserved share holders of these rights, the reserved share holders may file a reduction lawsuit against these persons acting in bad faith. In summary, regarding the application of the Supreme Court’s decision on this matter (January 13, 1975, 1974/7 E, 1975/1 K):
The person subject to the reduction obligation must transfer the property to a third party to avoid reduction.
The third party must acquire the property with knowledge of this intention.
Time Limit for Filing a Reduction Claim and Competent Court
The right to file a reduction claim expires one year after the date on which the heirs learn that their reserved share has been infringed. Actions relating to wills become time-barred ten years after the date the will is opened, and actions relating to other dispositions become time-barred ten years after the date the estate is opened (TMK Art. 571). However, if the annulment of one disposition revives another, the periods only begin to run from the date the annulment decision becomes final. Here, the one-year period does not run before the opening of the estate.
Therefore, even if the heir learns that the reserved share has been violated before the estate is opened, the time limits do not begin to run. Similarly, in wills, this time limit does not begin to run upon the opening of the will. The starting date of the ten-year period is the date of the opening of the estate in inter vivos transfers and inheritance contracts, and the date of the opening of the will in wills. The date of opening of the will is the date on which the will is opened in the presence of the heirs, with the knowledge of the judge, after it has been submitted to the Civil Court of Peace. As another special case, if a disposition subject to reduction becomes valid due to the cancellation of a disposition, the periods begin to run from that moment.
These one-year and ten-year periods applicable to reduction claims are not statutes of limitations but periods of forfeiture. The courts responsible for hearing reduction claims are the Civil Courts of First Instance.
Raising the Reduction Claim as a Defense
Separate from the reduction claim through the lawsuit mentioned above, the reduction request can also be raised as a defense. In other words, a hidden heir who has missed the deadline for filing a reduction lawsuit and cannot file a reduction lawsuit can raise the reduction as a defense against claims directed at them. However, this defense cannot be raised against every claim brought by the heir against the hidden heir. This defense can only be raised against claims in which the heir directly requests the transfer of property or money based on this transfer.
In other words, once claims subject to reduction have been satisfied, the reduction defense cannot be asserted against other claims.
The discount defense must be explicitly raised by the reserved share heir in the lawsuit filed against them, as it will not be considered by the judge. If a lawsuit is filed against more than one reserved share heir, this defense only applies in favor of the party raising it. Raising the discount defense is not subject to any time limit. However, it is possible to explicitly or implicitly waive this defense.