Delicate will and inheritance issue.

RAS

I'd be tempted to do it as  a conveyance. Tot up the cost of the IHT, legal  etc and offer to transfer to them. And put a first charge on the house equivalent to the cost of any IHT liability if you die in the next 7 years. 

I hadn't realised by the way that the property was in Scotland, so do make sure you use  a Scottish lawyer

xylophone

You mention in your post of 13 October that you have taken legal advice from your solicitor in respect of re-opening administration.
I would ask him to draft a letter to the brothers along the lines you indicate above, rather than having any more personal contact  with them concerning this matter.

mrschaucer

Before you even consider handing back the house share, you could make a start by asking the family in writing to organise a formal valuation of the property by a RICS surveyor, so that when you dispose of your share back to them you are able to prove to HMRC that you have calculated any gain correctly for Capital Gains tax purposes.  It will be instructive to see how they respond.

theoretica

Absolutely - take capital gains into account!  Another tax you should not be out of pocket on, and comes due for gifts as well as sales.

naedanger

I think I would also speak to the solicitor about the best approach, partly because everything is contentious and partly because I would want to avoid any future issues. (And obviously deduct the charge for this advice from the gift.)

Also is the gift to the father or his sons? (Personally I would be inclined to make the gift payable to the father. If money is needed for his future care then I think he should pay the same contribution anyone else in his position would have to pay and not benefit from his "gifts" that were apparently never really intended to be genuine gifts.) 

getmore4less

Any thing they pay out will be consideration so they will need to do a LBTT assessment.

Sell them the share for the amount it has/will cost you and gift the rest(smaller PET).