My dad died and left me a $250K life insurance payout when I was 10. My mother took the cash and spent it on fancy vacations. What are my options?

The court may “require the parent or legal guardian to open an account on the minor’s behalf and hold the funds there,” said Loew. And once the life insurance proceeds are in the account, the guardian must use the money for the child and give anything left over to the child in adulthood.

But what happens if a minor inherits and the guardian misuses the funds? Let’s say, for example, that Eric’s late father, Nelson, made Eric the beneficiary on a $250,000 policy, since Nelson was divorced from Eric’s mother, Kate. Kate was appointed guardian of the property, but unfortunately, Kate used the money for many fancy vacations and other personal expenses.

Now, Eric is 26 and wants to know whether he has any legal options, since he feels his mother essentially stole his money. Unfortunately, experts say that pursuing legal action may be challenging for one key reason.

Kate may have breached her duty

First, if Kate really did spend Eric’s $250,000 on vacations for herself, she likely did something wrong in the eyes of the law.

“The guardian has ‘fiduciary duties’ — duties to ensure that the assets are managed with care and solely for the minor’s benefit,” said Loew.

“If the mother spent the money for herself, she did so by converting the funds, which basically means stealing the money from the account,” Lori Ashmore Peters, managing attorney for estate planning, probate and trust litigation at The Ashmore Law Firm, told Moneywise.

The law provides remedies in these situations. Specifically, Kate’s violations could give Eric the right to “raise civil causes of action for breach of fiduciary duty, conversion and misappropriation and fraud and misrepresentation,” Barry E. Janay, owner and founder of The Law Office of Barry E. Janay, P.C., told Moneywise.

Eric will have to decide whether he wants to sue his mom. If so, he’ll have to prove Kate spent the funds on herself and not his needs.

“Did she use it for health or education?” Mark Russakow, founding partner of Trust Law Partners, asked Moneywise. “Theoretically those things would have benefited you. If she took it to Vegas and lost it on the craps table, then you can sue her.”