The lady's child has since been married and has one daughter who is a major now. We treat her like our niece. Both my brother and me are wanting to give the land to this girl, i.e. the ladys granddaughter. How do we do this?
Can we give it by a gift deed to her?
You can transfer the property on your name as a gift deed to her and not the property which is yet to inherited out of your uncle's property.
Before we give it to her vide a gift deed, is it required that we mutate the property in our names?
Yes, you have to transfer the property on your name and should possess valid and marketable title to the property to become eligible for transferring the same as gift deed.
If we give it directly as a gift deed (preferred) could it cause any problem to her in the future or if she wants to sell it at any point of time?
You cannot execute a gift deed of the property on which you do not have a marketable title.
As she and her mother are not very well off monetarily, we would like the cheapest option for them to get possession of the property.
Gift deed is the only possible way to transfer or by a sale deed which will be more costly.
What are the liabilities that would accrue to my brother and me when we do this Eg, property tax etc.?
You need pay property tax after transferring the property.
How do we safeguard ourselves from any liabilities? They say that they have paid all property tax to date, however that has to be verified.
Just merely paying the property tax shall not make them entitled to the title of the property.
Please advice us in detail as to how to go about this correctly so that the girl gets the property without any encumbrance and with a clear title without it being a big burden to her and her her mother as also to make sure we do not acquire any liabilities
Follow the steps suggested above and take the help of a lawyer in the local if you are not able to follow up the procedure properly