ยง  252.  Payment by committee or conservator of claims. A committee of
  the property of a person, incompetent by reason  of  mental  illness,  a
  developmental disability or alcohol abuse, to manage his or her affairs,
  or  a conservator of the property of a conservatee, may, under direction
  of the court exercising jurisdiction of such estate,  after  payment  of
  the expenses, disbursements and commissions of such trust, apply so much
  of  the  funds and property of said estate remaining in his or her hands
  as such committee or  conservator,  as  may  be  necessary  to  pay  and
  discharge  the  proper  claims  of  creditors  who have presented claims
  pursuant to the notice in this article provided for, to the  payment  of
  such  claims,  and  if  the property so remaining be insufficient to pay
  such claims in full, then the committee or  conservator  may  distribute
  the  same  according  to  law among the creditors who have presented and
  proved their claims as in this article provided, and such payment,  when
  so  made  in good faith and under direction of such court, shall relieve
  such committee or conservator and his or her sureties from liability  to
  creditors  who  have  failed  to present their claims as in this article
  provided.
Structure New York Laws
Article 9 - Payment of Debts of Incompetent Person or Conservatee
250 - Notice to Creditors of Incompetent Person or Conservatee.
251 - Authority for Committee or Conservator to Compromise Claims.
252 - Payment by Committee or Conservator of Claims.
253 - Citation to Attend Judicial Settlement of Accounts of Committee or Conservator.