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First off call the ATF NFA branch and have them run the serial number to see if it is registered or not and if so to your relative, then you get the gun transfered to yourself on tax free form 5 as a lawfull heir of the deceased.
If it is not registered already it is illegal contriband, you can not give it to a firearms manuf. because they can not register illegal contriband, you could turn it over to local police dept. for their use or turn over to ATF for their use.
ATF has in the past allowed such items to be removed from the scope of the NFA by welding on a barrel attatchment to bring the barrel length into compliance.
There is also a chance that since not registered that it is stolen government property that they want back.
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