Meaning of 'beneficiary' TOLATA 1996 s.22
Defines 'beneficiary' for TOLATA 1996: includes trustees & personal reps, but are not 'beneficially entitled'. Annuitants no interest in possession in land.
In this Act “ beneficiary ”, in relation to a trust, means any person who under the trust has an interest in property subject to the trust (including a person who has such an interest as a trustee or a personal representative). In this Act references to a beneficiary who is beneficially entitled do not include a beneficiary who has an interest in property subject to the trust only by reason of being a trustee or personal representative. For the purposes of this Act a person who is a beneficiary only by reason of being an annuitant is not to be regarded as entitled to an interest in possession in land subject to the trust.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This provision defines who counts as a 'beneficiary' under the Trusts of Land and Appointment of Trustees Act 1996. A beneficiary is any person who has an interest in property subject to a trust. This includes trustees and personal representatives – they are beneficiaries because they hold an interest, even if only as a trustee or representative.
However, when the Act refers to a 'beneficiary who is beneficially entitled' (meaning someone who actually benefits from the trust), trustees and personal representatives are excluded. They are not considered beneficially entitled just because they hold a legal or fiduciary role.
Also, an annuitant (someone who receives annual payments from the trust) is not regarded as having an 'interest in possession' in land. That means they do not have a current right to occupy or enjoy the land itself, even though they are still a beneficiary under the general definition.
When it applies
- A trustee who also has a beneficial interest under the trust (e.g., a life tenant) is a beneficiary but not 'beneficially entitled' for the purposes of the Act.
- An annuitant who receives yearly payments from a trust owning land is a beneficiary but has no interest in possession in that land.
- A personal representative holding property on trust for beneficiaries is a beneficiary (as a personal representative) but not beneficially entitled.
- A person with a contingent interest under a trust is a beneficiary because they have an interest in property subject to the trust.
What this section does not say
- People often think this provision gives trustees or personal representatives the same rights as beneficial owners, but it only says they are beneficiaries – not that they are beneficially entitled.
- Some believe an annuitant has no rights at all under the trust, but they are still beneficiaries (just not with an interest in possession).
- This section does not determine who can occupy trust land – that is covered by sections 12 and 13.
- It does not define 'beneficiary' for purposes outside this Act, such as tax law or other statutes.
Related sections
That's the law. Now let's settle your problem.
Say what is happening. A neutral mediator hears your side and the other party's, and walks you both to a written agreement. In the advanced settings you can ask for the decision to be reasoned on the Acts of Parliament that apply in England and Wales.
Or open a session directly and invite the other party.
We copy this text from the official publisher and re-check it against that source on every page load, but we cannot guarantee it is complete, current or free of error, and we accept no liability for any reliance on it. An amendment can take effect before a consolidation catches up. The publisher's own copy is linked below; where the two differ, it is the official one that counts.
This page reproduces the text of TOLATA 1996 s. 22 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.