Miss Marie,
There would be 3-possible ways whereby the property of your lola be transferred to you and your siblings:
1. Upon death of your lola; or
2. Through Deed of Sale executed by your lola in your favor; or
3. Through Deed of Donation likewise executed by your lola in your favor.
Your concern is what would be the most efficient/cheapest way to transfer the property to you. This would entail assessment on you part of the value of the property.
On Scheme 1 – Via Intestate Succession upon death of your lola:
a) Determine the Gross Estate of your Lola (all properties, real or personal, tangible or intangible, wherever situated);
b) Determine the Allowable Deduction
1. Funeral expenses ( actual or 5% max of the Gross Estate whichever is lower but not exceeding P200,000)
2. Judicial Expenses, if any;
3. Claims against the estate;
4. Claims against insolvent persons;
5. Unpaid mortgages;
6. Unpaid taxes;
7. Losses;
8. Vanishing deductions (property previously tax);
9. Transfer for public use;
10. Family Home (current Fair Market Value or extent of decedent’s interest, whichever is lower but not exceeding P1,000,000)
11. Standard deduction of P 1,000,000 (no need of substantiation);
12. Medical Expenses with in 1-year prior to her death up to max of P500,000 duly substantiated with receipts;
13. Retirement benefits received by heirs under RA4719;
14. Share of your lolo if buhay pa.
c) Determine the Amount of NET TAXABLE ESTATE = (GROSS ESTATE less ALLOWABLE DEDUCTION);
d) Determine the Estate Tax due based on the following Estate Tax Matrix:
Over But not Over Tax Shall be + Of the Excess over
P 200,000 EXEMPT
P 200,000 P 500,000 0 5 % P 200,000
P 500,000 P 2,000,000 P 15,000 8 % P 500,000
P 2,000,000 P 5,000,000 P 135,000 11 % P 2,000,000
P 5,000,000 P 10,000,000 P 465,000 15 % P 5,000,000
P 10,000,000 & OVER P 1,215,000 20 % P 10,000,000
On SCHEME 2. THROUGH DEED OF SALE:
TAX due resulting from Deed of Sale ( Capital Gain Tax) = 6 % x FAIR MARKET VALUE OR TAX DECLARATION whichever is higher;
On SCHEME 3. DEED OF DONATION
Below is the GRADUATED RATE OF DONOR TAX :
Over But not Over Tax Shall be + Of the Excess over
P 100,000 EXEMPT
P 100,000 P 200,000 0 2 % P 100,000
P 200,000 P 500,000 P 2,000 4 % P 200,000
P 500,000 P 1,000,000 P 14,000 6 % P 500,000
P 1,000,000 P 3,000,000 P 44,000 8 % P 1,000,000
P 3,000,000 P 5,000,000 P 204,000 10 % P 3,000,000
P 5,000,000 P 10,000,000 P 404,000 12 % P 5,000,000
P 10,000,000 P 1,004,000 15% P 10,000,000
Base on the above, you would be in the best position to determine which scheme you shall use to minimize your expenditure. Please refer to your nearest lawyer or accountant for assistance as there might be other factors that you have not devolved and considered in this suggestion.