Does this donation bring advantages or disadvantages?

Personal opinion after careful consideration: The gift will at least not work for the minor daughter, as the guardianship court will not cooperate ==> too much burden for the daughter.

Even though the value assigned for the gift has little to do with what one would actually get for it in a sale, the whole action seems rather pointless in this case. Normally, such a gift is made to remove the house from the estate or to reduce the parents' assets so that, for example, the social welfare office cannot claim from it. In this case, however, the reason for this is not really clear. - The house has no real value for the inheritance due to the high burden, especially if there is not much else, so there is nothing to save there anyway. - All children are to receive equal shares, so it is not about distributing the inheritance differently. - The right of residence counts as significant assets, so it also does not help with the social welfare office. The whole action is at best pointless, at worst it can backfire badly.

I find the whole story strange.

In my opinion, the gift with the reasoning of wanting to save inheritance tax later is ridiculous. For the children, the matter could turn out badly.

I would reject such a gift!

Allegedly, they only want to give the house as a gift to avoid paying t a x e s later on the i n h e r i t a n c e.

As already explained in detail, the house is practically worthless, the number of heirs large, and the tax exemptions likewise. Therefore, this reason is ruled out, so the matter can -- hopefully! -- be settled amicably ("Dear parents, there will be no inheritance tax, so you can rest assured and keep your house ...." --- You don't have to come straight out with it and point out the disadvantages to the recipients.)