Beneficial interest
From Wikipedia, the free encyclopedia
A beneficial interest is the right that a person has arising from a contract to which they are not a party, or a trust.[1] For example, if A makes a contract with B that A will pay C a certain sum of money, B has the legal interest in the contract, and C the beneficial interest.
More generally, a beneficial interest is any "interest of value, worth, or use in property one does not own", for example, "the interest that a beneficiary of a trust has in the trust".[2] More specifically, it could be:
- "A property interest that inures solely to the benefit of the owner", or
- Property that "remains of an estate after the payment of debts and the expenses of administration", or
- The right of a person having a power of appointment to appoint himself".[2]
Black's Law Dictionary defines beneficial interest as "Profit, benefit or advantage resulting from a contract, or the ownership of an estate as distinct from the legal ownership or control."[3][4] Examples of beneficial interests in mining claims include unrecorded deeds and agreements to share profits, but not mortgages and other liens.[5] A beneficial interest is also "distinguished from the rights of someone like a trustee or official who has responsibility to perform and/or title to the assets but does not share in the benefits".[4]
