What is a 'Beneficial Interest'

A beneficial interest is the right to receive benefits on assets held by another party. Beneficial interest is often referred to in matters concerning trusts. For example, most beneficial interest arrangements are in the form of trusts, whereby one has a vested interest in the trust's assets. The beneficiary receives income from the trust's holdings, but does not own the holdings themselves.

BREAKING DOWN 'Beneficial Interest'

Another example of beneficial interest is in real estate. A tenant renting a property is enjoying the benefits of having a roof over his or her head; however, he or she does not hold the asset.

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