REALWorld Law

Real estate finance

Trusts

Is the concept of a trust or a split between legal ownership and beneficial ownership recognized?

Australia

Australia

Australian law recognizes the concept of a split between legal ownership and beneficial ownership. A split between legal ownership and beneficial interest will occur where a trust is formed so that a trustee owns (or will own) the property on behalf of a beneficiary. The trustee will hold the legal ownership (and therefore will be recognized as the registered owner) and the beneficiary will hold the beneficial ownership.

The trustee is required to manage trust property for the benefit of the beneficiaries pursuant to the terms of the trust.