§ 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.