[perezfan]

I would say that more specifics are necessary to answer the question effectively. If the item is something that makes more sense to be in their possession than yours (for example a one-of-a-kind item with deep emotional ties to the family), I would consider forfeiting it.

That is, assuming they compensate you fairly- at market value or better. If you are willing/able to part with it, I would tell them the price you need to get for it, and give them the option. I guess there's no traditional market value on Ty Cobb's Dentures (remember that one?) but you know what you originally paid (and what the item is worth). Of course, if the item carries a low monitary value (or you acquired it cheap), it might be nice just to give it to them as a gift.

It would really help to know more specifics, and what the item in question actually is. This is just my personal opinion, and there's probably no "right or wrong" here. It depends on your values and judgement of the specific situation.