I’d pass it on to someone younger than you. You didn’t benefit, the tradition/luck was upheld, seems like the best answer here.
Morally that makes you all squared up, although legally you still accepted it, so this advice is only good if you know you could get away with accepting money, since this sounds like you visit this guy as part of a job.
I have never heard of anything secure doing that. Assuming they have taken security steps, it would mean they recorded those characters in plaintext when you set your password, but that means that at least those characters aren’t secure, and a breach means some hacker has a great hint.
When the hashing occurs, it happens using the code you downloaded when you visit the site, so it’s your computer that does the hash, and then just the hash is sent onwards, so they can’t just pull the letters out of a properly secure password.
A secure company would use two-factor authentication to verify you above and beyond your password, anyway, since a compromised password somewhere else automatically compromises questions about your password.