Tā bǎ zǔfù de huáibiǎo zuòwéi chuánjiābǎo zhēncáng qǐlái.
He treasured his grandfather's pocket watch as a family heirloom.
Tips
usage
传家宝 can also be used figuratively for non-material traditions or virtues passed down in a family, e.g. 勤劳是我们家的传家宝 (diligence is our family's heirloom tradition).