Why someone may choose to give their property legal title to someone else?
‘Beneficial Use’ and Legal Title Differences.
‘Beneficial Use’ often refers to the right to enjoy the benefits or profits from a property, such as living in a house or earning income from a rental property. This is usually associated with trusts, where one party legally owns the property (the trustee), but another party has the right to use and benefit from it (the beneficiary).
On the other hand, ‘Legal Title’ refers to the formal ownership of a property, including the right to sell or transfer it. This person has legal responsibility for the property. Essentially, the key difference lies in the rights associated with the property: ‘Beneficial Use’ pertains to the use and benefits of the property, while ‘Legal Title’ refers to legal ownership and control.
Why someone may choose to give their property to someone else to hold on behalf of another instead of giving it directly to them?
There may be several reasons why someone may choose to give their property to someone else to hold on behalf of another instead of giving it directly to them.
Firstly, this arrangement may be necessary to protect the property from potential creditors or legal claims. By placing the property in the hands of a trusted third party, it can be shielded from any financial or legal troubles the beneficiary may be facing.
Secondly, this arrangement can be used to ensure responsible management of the property. If the beneficiary is not capable of handling the property themselves, perhaps due to age or inexperience, a trustee can be appointed to manage it on their behalf. This ensures that the property is properly cared for and its value is preserved.
Lastly, this arrangement can be used for estate planning purposes. By establishing a trust, the property can be held by a trustee until a certain condition is met, such as the beneficiary reaching a certain age or achieving a specific milestone. This allows for greater control and flexibility in distributing the property over time.
Overall, giving property to someone else to hold on behalf of another can provide protection, responsible management, and flexibility in estate planning.
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