FWIW, we asked the person who provided the report to word family history sensitively. In this scenario, rather than identifying a specific parent with a specific MI diagnosis, the provider agreed to say just generally that there was a family history of the mental illness using a more broadly descriptive term.
We have also asked providers to prepare executive summaries specifically for school that included child's diagnosis and scores/testing summary, but no family medical history at all. No one has ever disagreed, since the family medical history isn't at all relevant for school officials to know.
I would also redact family history myself if necessary.
I wouldn't redact behavioral observations of DC, especially if school already knows. Assessment goes in a permanent file, but only those with a need to know can access and each person who accesses must document that they have done so. You can check periodically if you're interested who has accessed the file -- it's your right.
IME, school officials, even those who should be reading these files never do.......