How can someone put money into an investment offset bank account on a relative's name and be sure to get that money back in the future (this would be made to help the relative with monthly interest mortgage payments on a home loan)? Thanks
When lending money without obtaining security (e.g. an asset equivalent to the amount that you are lending), you can never be 100% sure that you'll be able to recover the money lent if it becomes a "bad debt" to a relative.
As a starting point, you may want to consider a loan agreement that clearly sets out the terms of repayment, etc.
Yes, it help a lot, I am in the ACT.
Speaking about the agreement,.,Could that be only between my relative and myself or does the bank would need to know?
Does it need to be registered like any other legal document?
Thanks a lot.
Maybe just put the capital money in an account in your own name,
and arrange with the bank (or whoever) to pay the interest
into the borrower's loan account.
Before you do anything, get advice from an accountant about the tax aspects
(and by that, I mean a proper accountant, not a financial adviser,
and not one of those tax refund guys in a shopping centre pop-up).
Yes, there will be fees to pay. But given the amount of money involved,
you really should get professional advice.