Trust Company (2)

Beneficial use vs legal title.

Beneficial use. The right to use and enjoy property according to one’s own liking or so as to derive a profit or benefit from it, including all that makes it desirable or habitable, as light, air, and access; as distinguished from a mere right of occupancy or possession. Reining v. Railroad Co. (Super. Ct.) 13 N. Y. Supp. 240.

Legal Title. This relates to ownership of property that is seen as sufficient under the law that is different from title recognised under equity rules.

Beneficial use and legal title are two distinct concepts relating to property ownership. The legal title refers to the formal ownership of property, recognized by law, granting the title holder the right to sell or transfer the asset. It is often associated with tangible assets, such as real estate or vehicles, and signifies the legal authority over the asset.

On the other hand, beneficial use pertains to the enjoyment or use of the property. A beneficial owner may not hold the legal title but has the right to enjoy the benefits of the property, such as income generation or habitation. In trust arrangements, for instance, the trustee holds the legal title, while the beneficiary enjoys the beneficial use. Thus, while legal title denotes legal ownership and control, beneficial use focuses on the actual use and benefits derived from the property.

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