The death of a customer who has a firearm on layaway, a pending transfer, or a repair item at your store creates a situation that many dealers have not thought through in advance.
Layaway Firearms
When a customer dies while a firearm is on layaway, the firearm has not yet been transferred and remains in your inventory. No Form 4473 was completed because no transfer occurred. The firearm is an acquisition in your bound book with no disposal entry.
Do not transfer the firearm to family members without proper documentation. The deceased customer's family members cannot simply pick up the firearm. A transfer to any person — including a family member settling an estate — requires a Form 4473 and NICS check for the person actually receiving the firearm.
Firearms on Transfer Hold
If a transfer was initiated but the buyer died before taking possession, the Form 4473 should be voided. The firearm remains in your inventory. Subsequent transfer to any person requires a new Form 4473 and NICS check.
Repair Items
Firearms left for gunsmithing work when the customer dies are property of the deceased's estate. Return of the firearm to the executor or administrator may not require a Form 4473 if it is a return of the customer's property rather than a new transfer — but this depends on the specific circumstances and applicable state law. Consult a firearms attorney if uncertain.
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