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Financial Law




Beneficial Interest


The rights that a person (beneficiary) enjoys in relation to a property/ asset/ business, held in trust for that person. These rights entail benefits that go to the beneficiary through a trustee (who is the legal owner, or holder of the legal interest). The beneficial owner is the person entitled to receive the benefits of a property (beneficial ownership), while the legal owner is the person who holds the legal title (legal interest that results from legal ownership). However, the legal owner and the beneficial owner may be the same person, though in practice they may not.

Separation of legal ownership and beneficial ownership (by declaration of trust) may take place when two parties agree to manage property through a trust. In which case, the legal owner (who holds the title) would hold the property on trust for the benefit of a beneficial owner.



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