Its an interesting question really, I think the best thing to do really is to just pass them on to family, but any vintage pieces over $3k or so, I'd consign to an auction house, and distribute the funds to family and organisations of my choosing (in my case the electronic frontiers foundation would get a significant chunk).
By putting them through an auction house, you know the collector community will get to take their best shot at the pieces and they'll be protected and appreciated, while the money will be reasonable. The worst case scenario is a vintage watch dealer finds out about the collection your relatives inherit, and uses them to buy a new car.
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