Sometimes, a person reaches a stage of cognitive deterioration (dementia, Alzheimer's disease, frailty) in which he loses his ability to think clearly. A person who can no longer make rational decisions in regard to health care, funds and daily life, might need to have a guardian appointed for him, so that the guardian can make the decisions necessary to safeguard his health. At this point, a person can be declared legally incompetent,  a "ward" ("חסוי"), and a guardian will be appointed for him, either for the person's body (for example, in order to give consent to a surgical procedure) and/or for a person's property. The appointment can be temporary or permanent.

The Family Court with the geographical jurisdiction over the location of the ward's residence has the jurisdiction to appoint a guardian for the ward. A medical opinion or social worker's review, attesting to the ward's cognitive condition, must be attached to the petition to appoint a guardian.

While a guardian is usually a family member, this is not a legal requirement. From the moment a guardian is appointed, the guardian must file reports on an ongoing basis with the Ministry of Justice. The report must include all of the ward's expenses and income. Any action taken with the property of the ward requires approval from the court and a report to the Ministry of Justice, which monitors the guardian. For services rendered, the guardian is entitled to monthly wages to be determined by the Court.

The appointment of a guardian means that the ward loses all of his legal rights. The ward can no longer sign documents, including checks, manage a bank account, sign a rental agreement, etc. Therefore, the court will not easily decide to appoint a guardian, rather must be convinced by objective, professional s in the field that the appointment is necessary in order to safeguard the ward's property and/or health.