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Generally, someone who holds at least 25% of the capital stake, voting powers, and/or profit rights for an asset is considered a beneficial owner (or ultimate beneficial owner, if their ownership share is among the highest for that asset).
What if my company is owned by a trust? Who is the beneficial owner? If a trust, directly or indirectly, has 25% or more ownership interest in your company, the trustee is the beneficial owner.
Generally, someone who holds at least 25% of the capital stake, voting powers, and/or profit rights for an asset is considered a beneficial owner (or ultimate beneficial owner, if their ownership share is among the highest for that asset).
Beneficial ownership can simplify the process of owning and possessing certain assets, such as securities. A common example is the stock market.
The legal owner of a property is the person who owns the legal title of the land, whereas the beneficial owner is the person who is entitled to the benefits of the property. Read this guide to have a clear understanding of the distinction between legal and beneficial interests.