Beneficial Interest
/ˌbɛnɪˈfɪʃəl ˈɪntrəst/
Definitions
- (n.) A legal right or interest held by a person who is entitled to enjoy the benefits of property or assets, even though the legal title is held by another.
The trustee holds the legal title, but the beneficiary has the beneficial interest in the trust property.
- (n.) A right to receive income or profits from property, securities, or a trust, without holding direct ownership.
She has a beneficial interest in the corporation’s dividends despite not being the record owner.
Forms
- beneficial interest
- beneficial interests
Related terms
See also
Commentary
Beneficial interest typically contrasts with legal title; drafting should clearly distinguish which party holds the beneficial versus legal interest to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.