Beneficial Interest
People with non-beneficial interests: the wicked queen's interest in Snow White; Napoleon's interest in Austria; our interest in a Chipotle burrito.
Now, to the beneficial interest. In its basic form, a person with a beneficial interest financially benefits from a particular asset. It may seem like an unnecessary distinction...there are people who benefit from an asset, and there's everyone else. Why the fancy term?
Well, there are times when a party has an interest in an asset, but not a beneficial one. An example might be someone put in charge of overseeing a trust.
Say your grandpa doesn't believe you'll spend your inheritance wisely (because you mostly split your time between the craps table at the Bellagio and stalking the floor at Maserati dealerships), so he creates a trust to oversee the money he plans to leave you. He names his lawyer as trustee. The lawyer now has responsibility for the assets in the trust, but doesn't directly benefit. You have the beneficial interest in the trust. The lawyer does not.
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Finance: What is a Beneficiary?25 Views
Finance a la shmoop.. what is a beneficiary? well in Latin, bene is
good so this is like a good place to catch fish...well close not [Old man fishing in the ocean]
really but being a beneficiary is good it means you get stuff like if you are
the beneficiary of weird uncle Al's will then you get his odd collection of hair
balls shaped like US presidents and thirty two thousand two hundred sixty [Uncle Al's will appears]
$9.32... in essence then you are the beneficiary of his will you are the one
set up to benefit by the death of someone who wanted to favor you with
their assets when they had you know passed on to the great beyond where hair [Uncle Al with white wings in heaven]
balls will fall....
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