Legal Definitions - lawful interest

Definition: Lawful interest refers to the legal share or right in something, often of a financial nature, that a person or entity is entitled to. It can include any aggregation of rights, privileges, powers, and immunities, or refer to any one right, privilege, power, or immunity.

Examples:

• Beneficial interest: A person with a beneficial interest in a trust receives income from the trust but does not hold legal title to the trust property.
• Controlling interest: Sufficient ownership of stock in a company to control policy and management; for example, a greater-than-50% ownership interest in an enterprise.
• Equitable interest: An interest held by virtue of an equitable title or claimed on equitable grounds, such as the interest held by a trust beneficiary.

These examples illustrate how lawful interest can refer to different types of rights or claims, such as receiving income from a trust, controlling a company, or holding an interest in a trust as a beneficiary. In each case, the person or entity has a legal entitlement to something, whether it is a share of profits or a right to make decisions.