ATF handles estate transfers a bit more gently than they do regular Form 1's and 4's. They understand that in most cases, neither the executor nor the heirs are familiar with the NFA transfer paperwork ... it is considered an involuntary transfer which is required by law.

When Form 5 estate transfer applications have problems, ATF is pretty helpful. I imagine that unless the outdated Form 5 is lacking some vital info from a new legal requirement, they would accept it anyway ... or else they would put it on hold, send the executor the current form with instructions on how to correctly fill it out and resubmit, and then process the new paperwork.

FWIW, the current average turnaround times for Form 5's is 18 days, versus 96 days for Form 4's and 99 days for Form 1's. Granted, not all Form 5's are estate transfers, but still, they do get handled much more quickly.

Hey, there's an idea! If you want faster transfers, all you need to do is ... die.

This is worth a read: http://www.atf.gov/press/releases/1999/09/090599-openletter-nfa-estate-transfers.html

But in short, yes:

The firearms may be transferred on a tax-exempt basis to a lawful heir. The executor would apply on ATF Form 5, Application for Tax Exempt Transfer and Registration of a Firearm, for a tax-exempt transfer to a lawful heir. A lawful heir is anyone named in the decedent’s will or, in the absence of a will, anyone entitled to inherit under the laws of the State in which the decedent last resided. NFA firearms may be transferred directly interstate to a beneficiary of the estate. When a firearm is being transferred to an individual heir, his or her fingerprints on FBI Forms FD-258 must accompany the transfer application. However, if any Federal, State or local law prohibits the heir from receiving or possessing the firearm, ATF will not approve the application.