Family Loans and Guarantees: Consultation Paper

This consultation paper investigates loans made by one family member to another,  and guarantees of loans obtained from financial institutions by a family member of the borrower.  Both are common, and are often ways in which a parent can help an adult child financially.  Unfortunately, both can also lead to misunderstanding. Potential problems are greatest if the lender or guarantor is a vulnerable elderly person. In such cases, the financial transaction may amount to elder abuse.