Equitable Interest: Trust Law Definition

The beneficial ownership of property held in trust, as distinct from legal ownership. When property is held on trust, the trustee holds legal title while beneficiaries hold equitable (beneficial) interests. Equity recognises the beneficiarys rights even though they dont hold legal title. This split of ownership is the essence of how trusts work.

This definition is part of the Equity Steward Trust Law Glossary — a plain English reference for UK families and trustees.