Can elderly people bequeath specific assets to the institution that will provide their care by entering into a lifetime care agreement?
Can the Elderly Bequeath Specific Assets to the Institution Caring for Them Through a Life-Long Care Agreement?
In the section of the newspaper allotted to me this week, I will attempt to explain a very important topic to you. As you know, being a guardian carries significant responsibilities. I will attempt to provide information on whether a person under guardianship can, if elderly, bequeath specific assets to the institution caring for them by entering into a life-long care agreement.
Under the heading "Consequences of the Termination of Guardianship" in the Turkish Civil Code, the final account and the delivery of assets are regulated in detail. Specifically:
Turkish Civil Code Article 489 - The guardian whose duty has ended is obligated to submit the final report and final account regarding the administration to the guardianship authority, and is also required to keep the assets ready for delivery to the person under guardianship, their heirs, or the new guardian.
As seen in Article 489 of the Turkish Civil Code, the actions a guardian must take regarding accounts and assets upon the termination of the guardianship duty are regulated in detail.
In the event of the death of the person under guardianship, the guardianship terminates automatically. In accordance with Article 489 of the Turkish Civil Code, the guardian whose duty has ended has the obligation to submit the report for the final, non-reported period and the account to the Peace Civil Court, which is the guardianship authority. According to the Turkish Civil Code, the guardian must keep the assets ready for delivery. The guardian is required to fulfill all obligations within 15 days following the death of the person under guardianship. The final report prepared by the guardian should include: the inventory of assets at the time of death (real estate, personal belongings such as rings, necklaces, etc.) and bank account information, if any. Increases and decreases in assets, expenses incurred for the person under guardianship, and income obtained should be shown separately, and relevant documents, if any, should be attached to the report and submitted in writing to the guardianship authority. The judge of the Peace Civil Court, acting as the guardianship authority, examines interim reports within one month from the date of submission, and reports submitted upon death within 15 days.
The definition of a life-long care agreement is regulated in detail in Article 611 of the Turkish Code of Obligations No. 6098. Specifically:
Turkish Code of Obligations Article 611 - A life-long care agreement is a contract wherein the care provider undertakes to care for and look after the care recipient until death, and the care recipient undertakes to transfer their entire assets or certain assets to the provider. If the care provider has been appointed as an heir by the care recipient, the provisions regarding inheritance contracts are applied to the life-long care agreement.
The procedures to be applied in cases of non-transferability, bankruptcy, and foreclosure for life-long care agreements are regulated in detail in the Turkish Code of Obligations No. 6098. Specifically:
Turkish Code of Obligations Article 619 - The care recipient cannot transfer their right to another person. In the event of the care provider's bankruptcy, the care recipient acquires the right to register a claim against the bankruptcy estate for an amount equal to the principal value that must be paid by the relevant social security institution to obtain the periodic income the provider is obligated to pay. To satisfy this claim, the care recipient may participate in foreclosures being conducted against the provider by third parties.
A life-long care agreement is defined as a contract in which the care provider undertakes to look after the care recipient until death, and the care recipient undertakes to transfer their assets or certain assets to the provider. A life-long care agreement is not considered valid unless it is made in the form of an inheritance contract—that is, as an official deed before a notary, a judge of the peace, a land registry officer, or an authorized official.
The form of a life-long care agreement is regulated in detail in Article 612 of the Turkish Code of Obligations No. 6098. Specifically:
Turkish Code of Obligations Article 612 - A life-long care agreement is not valid unless made in the form of an inheritance contract, even if it does not contain the appointment of an heir. If the agreement is made by a state-recognized care institution in compliance with the conditions determined by the competent authorities, a written form is sufficient for its validity.
As can be seen, certain formal requirements have been introduced for the execution of a life-long care agreement. Provided that compliance with these conditions is observed, there is no legal obstacle to entering into a life-long care agreement.