12.7 is the part of the Act that allows passing on some 12.6 pistols. Eligible pistols must have been made before 1946, and properly registered on Dec 1, 1998. Such pistols may be given to DIRECT next of kin with RPAL. They do not have to pass away to do this; it can be done while alive.
The recipient DOES NOT get 12.6, and can't acquire their own pistols. They are given a new RPAL that includes 12.7 "inherited pistol", but may pass the pistol on to their next of kin as well.