Beneficial interest

Beneficial interest

A beneficial interest is "that right which a person has in a contract made with another" (third) person. [ [http://www.lectlaw.com/def/b092.htm The 'Lectric Law Library's Lexicon] ] The typical example is "if A makes a contract with B that he will pay C a certain sum of money, B has the legal interest in the contract, and C the beneficial interest." ["Id.", [http://www.lectlaw.com/def/b092.htm The 'Lectric Law Library's Lexicon] ]

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." [Ballentine's Law Dictionary, p. 48 (Legal Assistant edition, 1994).] 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." ["Id.", Ballentine's Law Dictionary, at 48.]

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." [ [http://www.mndm.gov.on.ca/MNDM/MINES/LANDS/policies/gapolicy/ga810-1_e.asp Ontario Government web site] , citing Black's Law Dictionary, at p. (page needed).] [ [http://dictionary.law.com/default2.Asp?selected=50&bold=%7C%7C%7C%7C Law Dictionary] , same.] Examples of beneficial interests in mining claims include unrecorded deeds and agreements to share profits, "but not" mortages and other liens. [ [http://www.mndm.gov.on.ca/MNDM/MINES/LANDS/policies/gapolicy/ga810-1_e.asp Ontario Government web site] ] ["Cf." definition of real property as including mortages and other liens.] 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." [ [http://dictionary.law.com/default2.Asp?selected=50&bold=%7C%7C%7C%7C Law Dictionary] .]

References

ee also

*Asset protection
*Beneficial owner
*Beneficial use
*Corporate benefit
*Lien
*Purpose trust
*Quistclose trust
*Resulting trust
*Use (law)
*Trust (law)


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Look at other dictionaries:

  • beneficial interest — see interest 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. beneficial interest …   Law dictionary

  • beneficial interest — ➔ interest * * * beneficial interest UK US noun [C or U] ► LAW, FINANCE the right to receive income, profits, interest, etc. from a business, contract, or investment: »He has a beneficial interest in 17,000 shares in the company. ► LAW, PROPERTY… …   Financial and business terms

  • beneficial interest — The right to the use and enjoyment of property, rather than to its bare legal ownership. For example, if property is held in trust, the trustee has the legal title but the beneficiaries have the beneficial interest in equity. The beneficiaries,… …   Big dictionary of business and management

  • beneficial interest — An expression with variable meaning, dependent on the context in which it appears; that which remains of the estate of a decedent after the payment of debts and the expenses of administration. 28 Am 1 Rev ed Inher T § 388; such an interest as a… …   Ballentine's law dictionary

  • beneficial interest — /bɛnəˈfɪʃəl ɪntrəst/ (say benuh fishuhl intruhst) noun Finance an interest in a property, as in the property of a trust, held by a beneficiary to the trust. Compare equitable interest …  

  • beneficial interest —    An individual s right to some profit, distribution or benefit from a contract or trust. Such an interest is different from the rights of a trustee, who has responsibility for certain assets, but who does not directly share in the benefits …   Business law dictionary

  • beneficial interest — legal right that does not stem from ownership of assets …   English contemporary dictionary

  • beneficial interest — /ˌbenɪfɪʃ(ə)l ɪntrəst/ noun a situation where someone is allowed to occupy or receive rent from a house without owning it …   Dictionary of banking and finance

  • beneficial — ben·e·fi·cial /ˌbe nə fi shəl/ adj 1: providing benefits or advantages 2: receiving or entitling one to receive an advantage, benefit, or use a beneficial shareholder a beneficial estate ben·e·fi·cial·ly / shə lē/ adv …   Law dictionary

  • interest — in·ter·est / in trəst; in tə rəst, ˌrest/ n [probably alteration of earlier interesse, from Anglo French, from Medieval Latin, from Latin, to be between, make a difference, concern, from inter between, among + esse to be] 1: a right, title, claim …   Law dictionary

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