Denise George, the territory's attorney general, on Wednesday said the estate will pay $US105 million ($NZ166 million) in cash plus half the proceeds from the sale of Little St James, a private island where Epstein lived and allegedly conducted many crimes.
The settlement includes the return of more than $US80 million in tax benefits that one of Epstein's companies, Southern Trust Co, obtained fraudulently to fuel his criminal activity, George said.
Daniel Weiner, a lawyer for the estate, said there was no admission of liability, and the estate's executors Darren Indyke and Richard Kahn denied wrongdoing.
Indyke and Kahn had been long-time business advisers to Epstein.
"The settlement is consistent with the co-executors' stated intent and practice since their appointments to those roles - to resolve claims related to any misconduct by Jeffrey Epstein in a manner sensitive to those who suffered harm," Weiner said.
A separate restitution fund for Epstein victims paid out more than $US121 million to approximately 135 claimants.
'PERFECT HIDEAWAY'
Epstein, a registered sex offender, killed himself in August 2019 in a Manhattan jail while awaiting trial on sex trafficking charges.
George sued the estate for civil penalties and asset forfeitures five months later.
She said Epstein kept a computerised database to track girls and young women who could be trafficked to Little St James, which he bought in 1998 as what George described as the "perfect hideaway" to rape, assault and abuse them.
George also said Epstein bought the nearby Great St. James in 2016 to keep people from monitoring him and victims from escaping there.
Epstein had also been accused of sexual abuse at his homes in Manhattan, New Mexico and Palm Beach, Florida.
His former associate, British socialite Ghislaine Maxwell, is appealing her conviction and 20-year prison sentence for enabling Epstein's abuse of girls.
The government's share of Little St James sale proceeds will go toward counselling and other services for sexual abuse victims.
