Section 1808. Distribution of proceeds of compensation

1.  Where
  compensation exceeds one thousand dollars, it shall be  deemed  property
  of  the  same  nature,  and the disposition thereof shall be made in the
  same manner, as the disposition of proceeds of a sale, mortgage, release
  or lease of real property of infant or incompetent.
    2. Where compensation does not  exceed  one  thousand  dollars,  after
  deducting therefrom the payment of any attorney's fees and the expenses,
  if  any  as  allowed by the court, the proceeds shall be administered by
  the petitioner for the use and benefit of the infant, incompetent person
  or conservatee, including the application thereof for the  purposes,  in
  the manner, under the limitations and through the medium provided for in
  the  mental  hygiene law of the state of New York and official rules and
  regulations adopted pursuant thereto as to funds belonging to a patient,
  in any case where such ward is  an  incompetent  person  or  conservatee
  confined  as  a patient to a state institution under the jurisdiction of
  the department of mental hygiene of the state of New York.