A parent’s actions as a guardian over children’s assets must be approved by the Court

A mother used life insurance funds she received for her minor daughter.

The Court accepted the daughter's claim and ordered the mother to return the illegally used funds to the daughter. Israeli law states that a guardian who wishes to perform legal actions related to minors' funds, as well as withdraw amounts of theirs, must obtain approval from the Court. A parent acting as a guardian for minors has a higher duty of trust than an ordinary private person. Here, the mother received the life insurance proceeds as the legal guardian of her minor children, who were the beneficiaries of their deceased father's policy. The mother used the funds intended for the daughter for personal needs, among other things, to purchase an expensive apartment in her name, without obtaining permission from the Court. Therefore, the mother must return her share to the daughter.