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Not only does one have to have a pistol permit in NYS, but all pistols must be registered. Grandma does not have a pistol permit, nor is the gun registered. If the son does get a permit, the gun will need to be registered and questions will arise when such registration occurs, since all pistol transactions need to go thru a FFL 01 who is also in possesion of a NYS dealers license (separate from a FFL). Any pistol transaction in NYS must occur with registered handguns.

The way to do this would be for Grandma to take the pistol to the Sherriffs Dept in her county and turn it in. They will hold it (probably max for one or two years) while someone in the family gets a pistol permit. ALthough they will give her a receipt for it, they will not be responsible for any damage or loose (known to happen). In most counties, it would take 6 months to a year to get a permit. The alternative is to have the Sherriff turn it over to a NYS dealer for sale or transfer. I don't think the Sheriff would allow any other other words the transfer goes through a dealer. SOme of this may vary bu county. Bottom line is the gun can't get to anybody in the family from Grandma (legally) without getting into the NYS registration system first, and at that point it can only be transfered to someone with a valid NYS pistol permit.
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