The delivery of homes and monthly payments of $10,000 or more to each sibling were approved late previous year by King Salman as part of what one former official described as an acknowledgment that "a big injustice has been done" and an attempt "to make a wrong right".
Khashoggi, a Virginia resident and Washington Post columnist, had four adult children, at least two of whom are USA citizens.
According to Saudi law, Khashoggi's children can grant their father's killers clemency in exchange for "blood money" - payments that in this case could amount to millions of dollars. The individual spoke on condition of anonymity, fearing reprisal.
After a few weeks of denial, the Saudi government acknowledged Khashoggi's killing in October 2018, fired top officials and arrested 18 operatives accused of killing the journalist.
If the men are convicted, that could pave the way for the Khashoggi family members to accept financial compensation as an alternate punishment.
The issue of how far to go in protecting their father's legacy has been a source of tension among the Khashoggi siblings, according to people close to the family.
Saudi Arabia's powerful crown prince, Mohammed bin Salman, has been accused of orchestrating Khashoggi's killing, but the kingdom has claimed that the prince was not involved.
- In addition to the one-time compensation payment, they would also keep receiving monthly allowances, a source said.
Amid global fallout from the death, Saudi Arabia released a picture of Bin Salman shaking hands with Salah in an attempt at reconciliation.
The Saudi government didn't respond to multiple requests for comment Tuesday. Neither did William Taylor, a Washington lawyer who has represented the family.
"What we concluded at AMC is that if we continued with the opening of theatres in the Middle East, that we were doing something very good for the people of the country", he said.
A trial is now underway after Saudi's public prosecutor charged 11 people over Khashoggi's murder at the Saudi Consulate in Istanbul last October. Five of the suspects are facing the death penalty.
The trial, however, may pose a dilemma for the Saudis.
Saud al-Qahtani, a top aide to the crown prince, was part of the team and was dismissed soon after Khashoggi's killing, although Prince Mohammed reportedly continued to take advice from him as recently as January.
Salah, who as the eldest son handles the family's relations with the government, has been given a large home in Jeddah, where he works as a banker. But in a departure from Saudi custom, some Western diplomats have been allowed to observe sessions of the trial, in an apparent effort to show the world the kingdom is pursuing justice.