Beneficial Interest

Beneficial interest can be defined as the right of an individual or a business entity to receive benefits on the assets that are held by a third party or any other entity. In most of the cases the beneficial interest is included or referred to in matter concerning trusts. In most of the business and accounting environments the beneficial interest arrangements are the arrangements made in the form of interests. In this type of arrangement one has vest interest in the asset of the trust. In such cases the beneficiary will receive the income from the trust holding however the beneficiary doesn’t owe the trust holdings.

In addition to the trust income another example of beneficial interest is in the case of real estate. A tenant having rented a house is enjoying the roof over his head as well as the other benefits of the house however the tenant is paying rent for the facility but don’t owe the house. This means that the tenant does not hold the asset however enjoying the benefits from the asset.

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