Property Ownership
What is 'beneficial interest' in a trust holding Hawaii real estate?
AA. The amount of income the trustee receives for managing the trust
BB. The equitable ownership interest of the trust beneficiary—the person who benefits from the trust assets, though legal title is held by the trustee✓ Correct
CC. A tax benefit available only to trusts holding Hawaii real property
DD. The interest rate charged on loans secured by trust property
Explanation
In a trust, legal title (the right to manage and deal with property) is held by the trustee. Beneficial interest (equitable ownership) belongs to the beneficiary—the person(s) who actually benefit from the trust assets.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Fee SimpleThe highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.
Math Concepts
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