Sorry to rain on the parade a bit, as it's a very nice-looking piece, however, I strongly suggest that - family tradition aside - your wife's ancestor was NOT holding THAT Krag in the picture. A Krag to be sure, but not that one.

Anything with full wood would have also had a 30" barrel. That barrel does not appear to have been cut, even though the front sight blade has been changed. Other issues: the bolt has been replaced - note placement of gas-escape hole. The rear sight and hand-guard have also been replaced, but not by SA. That sight (a Model 1902, but I cannot tell if R or C) was NEVER used on that model of carbine (which is an early Model 1896). The stock is genuine and correct (cannot be faked), but the hand-guard is not an armory product in its' present form.

If you would post the entire serial number, it could be looked up in the SRS database. We may have something, we may not, but cannot do anything with "x"s. Since you have had it for so long, it cannot possibly be stolen, so, there is no reason to be coy. That is a carbine serial number, however, which absolutely precludes it from being the one in the photo. Am not saying that the gun has not been in the family forever, or did not belong to the gentleman in question, just that it cannot be the same one as in the picture.

The minor warts are fixable, for an expenditure of $500 to $700. The correct M1896C rear sight is extremely hard to find, and - for that reason - has been faked to an unfortunately large degree. Caution will be required.