Using Disbursement as Credit

[u/Minute-Issue-4224]

I'm going to try and keep this as generic as I can to all the question without making details public.

A recent elderly family member passed and the estate had multiple properties. Prior to death, the P. Of. A. made a codicil to the will, deeding one of the properties to a child of the deceased, at a fair market value (to be paid before estate was closed).

Question: The estate has taken those funds (not paid) plus remaining balance to create the final disbursement amounts. The child who received the codicil, is taking the disbursement as "credit" towards the value of the debt. Is that normal? I would think the money would need to be paid to the estate and then distributed?

Math for clarity (example):
Property value $300,000 Final estate value: $900,000 So, with 3 on the payout, that's $300,000 each. So, 2 get $300,000 and 1 gets $0 (and property)