N.Y. Real Property Actions & Proceedings Law § 1808

§ 1808. Distribution of proceeds of compensation. 1. Where\ncompensation exceeds one thousand dollars, it shall be deemed property\nof the same nature, and the disposition thereof shall be made in the\nsame manner, as the disposition of proceeds of a sale, mortgage, release\nor lease of real property of infant or incompetent.\n 2. Where compensation does not exceed one thousand dollars, after\ndeducting therefrom the payment of any attorney's fees and the expenses,\nif any as allowed by the court, the proceeds shall be administered by\nthe petitioner for the use and benefit of the infant, incompetent person\nor conservatee, including the application thereof for the purposes, in\nthe manner, under the limitations and through the medium provided for in\nthe mental hygiene law of the state of New York and official rules and\nregulations adopted pursuant thereto as to funds belonging to a patient,\nin any case where such ward is an incompetent person or conservatee\nconfined as a patient to a state institution under the jurisdiction of\nthe department of mental hygiene of the state of New York.\n