N.Y. Work. Comp. Law § 236

§ 236. Disposition of accrued benefits upon death. If any benefits due\nunder this article to an employee are unpaid at the time of his death,\nsuch benefits shall be payable to the estate of the individual or, at\nthe option of the carrier, may be paid to the surviving spouse, parent,\nchild or children of the deceased employee. Benefits that are not paid\nas above provided shall, after the expiration of one year after such\ndeath, be paid into the special fund for disability benefits created\nunder section two hundred fourteen of this article.\n