I'll counter Orange's sentiments with my own (since we can't help ourselves to play devils advocate from time to time -
. If nobody in the family has any memories of Grandpa or Dad actually using that rifle in its current form then I doubt it has much sentimental meaning (other than just a typical heirloom that nobody knows what to do with other than hang it over the fireplace).
My thoughts are more in line with OP. If the action gets some Smith TLC and blueing, mated up to a new barrel in a chambering that's in line with the origin of the rifle and in a capable hunting round (7x57 would probably fit the bill), then it might actually get USED. Add in a hand made stock and Man, what a gift. Something that gets carried, used and ends up in protographs with smiling generations of users will have much more sentimental value over the years.