Beneficial interest

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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]

## See also

[edit]

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

## References

[edit]

1. ^ Ashley, Clarence D. (1920). "Assignment of Contract". Yale Law Journal. 19 (3): 180–186\. doi:10.2307/784570. JSTOR 784570.
\- "Beneficial interest". Wex. Cornell Law School.
2. ^ a b Ballentine's Law Dictionary, p. 48 (Legal Assistant edition, 1994).
3. ^ Ontario Government web site Archived June 22, 2007, at the Wayback Machine, citing Black's Law Dictionary, at p. (page needed).
4. ^ a b "beneficial interest", Law Dictionary
5. ^ Ontario Government web site Archived June 22, 2007, at the Wayback Machine
\- Cf. definition of real property as including mortgages and other liens.

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