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Actually, I think I figured out that this is a non-issue.
Instructions in 4473 say:

IMPORTANT NOTICES:
For purposes of this form, you are the actual buyer if you are purchasing the firearm for yourself or otherwise acquiring the firearm for yourself (for example,
redeeming the firearm from pawn/retrieving it from consignment). You are also the actual buyer if you are acquiring the firearm as a legitimate gift for a third party.

That sorts it out for me as an in-state gift to someone who would be allowed to own a firearm...

I have no idea. There are no "hold it" requirements as far as I know about.
Is there a minimum hold time if you're going to sell it?

That's the straw purchase distinction, absolutely.
There is no "gift" option on Form 4473.

Jumping Frog wrote: The uncle was paying for the handgun, and the nephew was buying it. Had the nephew bought the gun and gave it as a gift, there would have been no problem.

Can you make this more clear, legally speaking... I dug and dug and couldn't find a way that you could legally buy a gun for someone else. You've got to essentially break the law by indicating that you're not buying the firearm for someone else.. Is there a "gift" box that I don't know about? (ATF Form 4473)

I know that a gift is not a straw purchase, as there is no money involved.

It appears that the only way to do it is to purchase it for yourself and transfer it through an FFL...

Someone correct me..