Carl Williams' teenaged daughter will receive a payout from the Victorian government after the Supreme Court formally approved compensation for the underworld figure's murder.
The gangland killer's father George, ex-wife Roberta and daughter Dhakota, 14, sued the state over his 2010 death in the maximum-security Acacia unit at the Barwon prison, saying it was preventable.
Williams was beaten to death by fellow inmate Matthew Johnson with part of an exercise bike in their shared cell.
The government said earlier this month it would provide a confidential sum to be held in a trust until Dhakota's 18th birthday, but would not extend the settlement to George or Roberta.
The government did not accept any liability as part of the settlement.
George and Robert Williams have since withdrawn their claims.
Premier Daniel Andrews said at the time while he understood no one was particularly pleased about the settlement, government lawyers advised him that it was the best outcome for all involved.
"The daughter is getting significantly less than she sought," he told ABC Radio on July 15.
"On a matter of principle, if you're going to penalise children because of what their parents did ... it does set a pretty damaging precedent for the future."
Dhakota was aged nine at the time of her father's death.
Williams was a leading figure in Melbourne's bloody underworld war, in which more than 30 people died between 1998 and 2010.
He was jailed for life with a minimum of 38 years for the murders of gangland rivals Lewis Moran and his son Jason, Mark Mallia and Michael Marshall.
When word spread he was assisting police with information on crimes, including the murder of police informer Terence Hodson and his wife Christine in 2004, he became a marked man.
Despite CCTV surveillance of the cell, it took 27 minutes before anyone realised he had been bashed and lay fatally injured.
Johnson was convicted of Williams' murder in 2011. A Victorian Ombudsman's investigation found the murder, motivated by Williams' turning into a police informer, was a failure in the prison's duty of care to ensure his safety.
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