as far as I know it does not negate the mod level requirement (i.e. your level 10 character cannot use a legacy orange shell with level 50 mods. They will be greyed out / inactive).
I have no idea why Kurgannazzir confirms it works, maybe things have changed in the last few weeks.
Obviously you can't slot the items if they are above your level, but you can use the method to send the items to your other characters at which point they can pull the mods and store them for when the level up. I probably misread the question and thought they were asking just about sending, not slotting and that's why I answered the way I did (lack of sleep, my bad).