- 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 abeneficiary 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 thatinure s 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 apower 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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