Definition of Beneficial interest:
A beneficial interest is the right to receive benefits on assets held by another party. The beneficial interest is often related to matters concerning trusts.
Right to enjoy and use a property, and to otherwise benefit from its possession. Beneficial interest usually accrues to the legal owner but may be vested in some other party, such as the beneficiary of a trust. See also contingent beneficial interest and equitable interest.
For example, most beneficial interest arrangements are in the form of trust accounts, where an individual, the beneficiary, has a vested interest in the trust's assets. The beneficiary receives income from the trust's holdings but does not own the account.
How to use Beneficial interest in a sentence?
- The principle of beneficial interest can be applied in real estate situations.
- In the instance of a Crummey trust, often set up by parents for their children, the beneficiary has an immediate interest.
- A beneficial interest is usually related to trust accounts.
Meaning of Beneficial interest & Beneficial interest Definition