The University of North Carolina at Chapel Hill coach died Feb. 7 at the age of 83.
Smith was the head coach of the Tar Heels from 1961-1997, retiring with 879 wins and two national championships.
The letter was sent Monday to all former basketball lettermen who played for Smith.
A message sent with the checks read: "Each player was important and special to Coach Smith, and when he prepared his estate, Coach Smith wanted to reach out to each of his lettermen."
A notation on each $200 check read, "Dinner out."