"his first hundred thousand would be paid back to the estate. That's how much the Judge figured Forrest owed him." and "Thank God he burned it."

[kjc0123]

What is the meaning of "his first hundred thousand would be paid back to the estate. That's how much the Judge figured Forrest owed him." and "Thank God he burned it." in the following sentences?

 

Harry Res said, "The Judge wanted to set up a trust so that when this place was sold the money would go there. I'd be the trustee and as such I'd have the pleasure of doling out the money to you(Ray) and him(Forrest).But his first hundred thousand would be paid back to the estate. That's how much the Judge figured Forrest owed him."

"What a disaster.", Ray said. 

"I tried to talk him out of it.", Harry Res said. 

"Thank God he burned it.".", Ray said. 

"Yes indeed. He knew it was a bad idea, but he was trying to protect Forrest from himself.",  Harry Res said. 
"We've been trying for twenty years." , Ray said.

[Ouisch]

Hard to be precise from the passage you quoted, but it appears that Forrest had some property or a large house and some land that was going to be sold.  After the sale was complete, the first $100,000 of the sale price would go towards the legal fees involved - taxes, lawyers, court costs, etc.  "Thank God he burned it" - taking this literally, it sounds like someone deliberately set fire to the house, so that it would be worthless.