Beneficial interest explained

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:

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

Notes and References

  1. Ashley . Clarence D. . Assignment of Contract . Yale Law Journal . 1920 . 19 . 3 . 180–186. 10.2307/784570 . 784570 .
    - Web site: Beneficial interest . Wex . Cornell Law School.
  2. Ballentine's Law Dictionary, p. 48 (Legal Assistant edition, 1994).
  3. http://www.mndm.gov.on.ca/MNDM/MINES/LANDS/policies/gapolicy/ga810-1_e.asp Ontario Government web site
  4. http://dictionary.law.com/default2.Asp?selected=50&bold=%7C%7C%7C%7C "beneficial interest"
  5. http://www.mndm.gov.on.ca/MNDM/MINES/LANDS/policies/gapolicy/ga810-1_e.asp Ontario Government web site