Capital gain - options?

A is liable to discharge the LTCG tax in his hands only, and hence he is set free to donate/ gift / give his money to anybody he wants.

Mr. A is only the trustee of the said flat for now. The mutation is still pending. What should be the course of action for Mr. A in order to decrease his long term capital gains? He intends to give 50% to his brother from the sale of this flat. From the balance 50% with himself, he wants to buy another flat plus make some investments.

1) transfer the flat wholly in the name of Mr. A and then sell to give 50% to his brother?

OR

2) transfer the flat partly in the name of Mr. A and partly in Mr B and then sell to share the sale proceeds? (in this case, the long term capital gain will be shared, too, because the flat is owned jointly, right?)

Thanks