In Christ alone we are saved.
Sounds like your friends heart was full repentance and restitution. Christ like qualities.
If the opportunity for his direct blessings of folks in his past has passed, continue to focus us on those Christ like qualities when you decide on what to do with the money. Most importantly pray to God for wisdom in your decisions and to make those decisions clear for you.
I’m just saying what we Catholics do. Do not need a theology lecture from a non credentialed source.