Donation or Inheritance?

25d ago in Estates

A mother wants to give her house to her eldest son.

She has two other children one who has verbally indicated he wants nothing to do with the property or the mother and another who the eldest entrusted his house to and placed the title deed of his own house on her name and she refuses to give it back to him.

Is it more cost-effective for her to:

1) donate the house to him

2) sell the house to him

3) leave it in her will for him

To secure her there would need to be a usufruct that she has exclusive use of the property until her passing if it is not left in her will for him.

She is a pensioner, does she pay Capital Gains Tax if the property is valued at between R500 000 and R700 000. Does she pay transfer duty?

If it is a donation what are all the costs to consider?

We are trying to figure out the best route to take.

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