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Under financial regulations, a beneficial owner is considered anyone with a stake of 25% or more in a legal entity or corporation. Beneficial owners can also be considered anyone with a significant role in the management or direction of those entities, or any trusts that own 25% or more of an entity.
Under financial regulations, a beneficial owner is considered anyone with a stake of 25% or more in a legal entity or corporation.
The most common way to create a beneficial interest is through an express trust. This is where the legal owner signs a trust deed or written agreement declaring that the legal owner holds the property 'on trust' for someone else, the beneficial owner.
For example, if property is held in trust, the trustee has the legal title but the beneficiaries have the beneficial interest in equity. The beneficiaries, not the trustee, are entitled to any income from the property and will be taxed on this income and any chargeable gain arising if the property is sold.
Primary tabs. Beneficial interest refers to a right to income or use of assets in a trust. People with a beneficial interest do not own title to the property, but they have some right to benefit from the property. This is to be contrasted with trustees and other agents of the trust who only have managing duties.