What is beneficial ownership?
This is legal terminology for when the legal title of a property belongs to one person and the property rights in equity belong to another individual. This often occurs when the legal title owner has given trustee duties to the beneficial possessor.
Where have you heard about beneficial ownership?
In real estate, this can occur if the person who owns the property doesn't want their name to be associated with it. For example the person may be a celebrity or person of note who doesn't want where they live to be made public.
What you need to know about beneficial ownership.
Beneficial ownership usually occurs as a means of protection for assets, securities and real estate. For example, when a bank holds mutual shares of a fund, the actual owner is the beneficial owner and the bank holds the title for safety and ease. In US law, the beneficial owner of a security will have or share voting or investment power, whether directly or indirectly.
Find out more about beneficial ownership.
To better understand beneficial ownership it is useful to read about equity.