I'll try to make this brief but to the point. I haven't contacted an FFL holder or an attorney yet - looking for input from members that may have encountered the same /similar situation.

My sister-in-law's health deteriorated rapidly in 2015 and she "turned" over a handgun to the town marshal in July 2015 (small town in Colorado). In October 2015 she was relocated to a nursing home in South Carolina near her daughter and son-in-law. Based on her current situation it's highly unlike she will ever leave the nursing home or return to Colorado. Her son-in-law has her durable power-of-attorney and is overseeing all her affairs due to her current mental and physical condition. The son-in-law has no plans or reason to come back to Colorado anytime soon and he doesn't want to own / possess firearms.

I spoke with the marshal last week and updated him on her situation. He told me there were 2 options to release the handgun: to either my sister-in-law or the son-in-law (with power of attorney in hand) at his office.
I asked him if he could turn the handgun over to me if the son-in-law sent him a notarized authorization of release and the notarized power of attorney. I would also be willing to do a 4473 transfer at the local FFL.

My end goal is to sell the handgun and give my sister-in-law the proceeds - she needs the money more than a gun at this point.

Anyone dealt with a situation like this before?