assignment of beneficial interest form

Contact Land Trust Customer Service:

888-878-7856

Forms & Links

Land trust forms, important information regarding procedures for opening a new account.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.

What this means for our customers: when you open an account, we will ask you for your legal name, address, date of birth, and other information that will allow us to identify you. We will also ask for a copy of your driver’s license or other identifying information.

We are taking this action to further protect your property from fraud and identity theft.

We will be able to notarize land trust forms signed in our presence in one of our 6 land trust offices: Chicago, Lisle, Oak Park, Orland Park, Rolling Meadows, and Skokie.

Additionally, we can offer mobile notary services to you for an additional separate fee.

Below are forms in PDF format regarding land trusts that do not necessarily require the assistance of an attorney. These forms are now interactive and can be saved with the information that you entered.

If you have any questions about our forms, please call Debra White at 312-223-4131 . For other land trust questions, please contact your attorney or our Customer Service Unit toll-free at 888-878-7856 .

These forms are provided for your convenience. As with any legal document, you may wish to consult with an attorney to be certain that your objectives are being met.

Acceptance of Transfer of Beneficial Interest and Ratification (W-9)

When the primary beneficiary dies, changes beneficial interest in the trust from the deceased to the contingent beneficiary(s).

Amendment of the Contingent Beneficial Interest

Changes contingent beneficiary(s). The contingent beneficiary is the person(s) designated to inherit the beneficial interest upon the death of the primary beneficiary. 

Amendment of the Power of Direction (W-9)

Used to change the party(s) who has power of direction.

Assignment of the Beneficial Interest (W-9)

Used by current beneficiary to make changes to the beneficial interest by assigning all or part of the beneficial interest in the trust to another party(s).

Corporate Resolutions

Required when the beneficiary is a corporation.

Deed in Trust - Quit Claim

Transfers property into the land trust. Typically used when property has already been purchased.

Deed in Trust - Warranty

Transfers property into the land trust. Typically used when purchasing the property directly into the trust.

Direction to Convey

Used to request issuance of a deed when property is being transferred out of the trust.

Facsimile Assignment of Beneficial Interest

Must be provided to trustee prior to trustee acknowledging the Assignment of Beneficial Interest or Collateral Assignment of Beneficial Interest. Cook County is the only county that requires the Facsimile Assignment of Beneficial Interest to be recorded for all outright and collateral assignments. Transactions with consideration of $100 or more require recording in all counties.

Grantor/Grantee Statement

The grantor-grantee statement is used in connection with the recording of a deed or facsimile in Cook County.  This form is only used when the recording is exempt from the payment of transfer taxes. The grantor/beneficiary should execute this document as both Grantor and as Grantee.  Chicago Title Land Trust Company does not sign as either. 

Letter of Direction

Authorization by the party(s) having power of direction to execute documents. This form is not used to request a deed (Direction to Convey).

Limited Liability Company Certificate

Required when the beneficiary is an LLC.

Notary Addendum

Used to notarize documents where there is no notary block.

Partnership Certificate

Required when the beneficiary is a partnership.

Release of Collateral Assignment/Irrevocable Right to Approve/Agreement to Notify

Removes requirements for additional signatures or notifications.

Tax Bill Change Form

Used to notify us to change how county tax bills should be addressed.

Tenancy by the Entirety Affidavit

Required when the beneficial interest is held as tenants by the entirety.

Trust Agreement (W-9)

Used to create the trust and it terms with the trustee.

Patriot Act information disclosure. Prior to opening an account and any addition of a beneficiary/power of direction holder, Chicago Title Land Trust Company is required to obtain proper identification of each customer.

Additional Information

Suggested beneficial interest designations.

Sample phrasing for establishing the beneficial interest and the contingent beneficial interest in the trust.

The following links are provided for your use to learn about Land Trust and other Title Information. These links open in a new browser window to an external website. The information contained on these websites is not published or managed by Chicago Title Land Trust Company.

Chicago Title Insurance Company is part of the Fidelity National Financial family of companies with its own unique and proud history built on the fundamental principles of outstanding customer service, untarnished reputation for integrity and a rock solid, enduring identity synonymous with expertise.

Chicago Title Insurance Company's 37 metropolitan area offices comprise the largest region in the Chicago Title Family and are conveniently located throughout the Chicago metropolitan area.

A pioneer in the real estate industry since 1847, Chicago Title is dedicated to leading the evolution of the industry. Click here for more information regarding Chicago Title's Downstate Illinois operations.

Indiana Land Trust Company is Indiana’s leading land trustee. For over 50 years, Indiana Land Trust Company has helped clients throughout the State of Indiana benefit from the establishment of land trusts for their real estate holdings.

NTI Web provides state-by-state title insurance information including recording fees, mortgage and transfer taxes; document execution requirements; laws and customs; forms (state specific, endorsements, policies), etc.

*The statements made on this web page and any page that follows within the Chicago Title website are not intended, and shall not be construed to expressly or impliedly issue or deliver any form of written guaranty, affirmation, indemnification, or certification of any fact, insurance coverage or conclusion of law.

Contact Indiana Land Trust Customer Service:

219-661-2792

Owners/Beneficiaries

As an owner/beneficiary how do i..., establish a new land trust.

1. Contact us to reserve a land trust number. We will ask for the property address, type of property and value of the property.   2. Download and complete the  Trust Agreement Form and W9 (PDF) . TO COMPLETE THIS FORM: SAVE the blank form to your computer BEFORE entering your information and then SAVE AGAIN after completing the form. These forms are signed by the beneficiary and holder of power of direction if different than the beneficiary.   3. Send the original signed trust agreement, W9, and copy of state ID to the Indiana Land Trust Company office for acceptance.   4. Download  and complete the deed in trust form.   5. Record the deed with the county recorder’s office in the county where the property is located.

Amend an Existing Trust – Contingent Beneficiaries?

1. Download and complete the  Amendment of Contingent Beneficial Interest (PDF) TO COMPLETE THIS FORM: SAVE the blank form to your computer BEFORE entering your information and then SAVE AGAIN after completing the form. form. This form is signed by the beneficiary.   2. Send the original signed amendment to the Indiana Land Trust Company office for acceptance.

Amend an Existing Trust – Assignment of Beneficial Interest?

1. Download and complete the  Assignment of Beneficial Interest form and W9 (PDF) . TO COMPLETE THIS FORM: SAVE the blank form to your computer BEFORE entering your information and then SAVE AGAIN after completing the form. The current and new beneficiaries sign the assignment and the new beneficiary signs the W9.   2. Send the original assignment, W9, and copy of state ID to Indiana Land Trust Company office for acceptance.

Close a Trust / Transfer Property Out Of a Land Trust?

Call  (219) 661-2792  to verify fees and signature requirements.   1. Download and complete the  Direction to Convey (PDF). TO COMPLETE THIS FORM: SAVE the blank form to your computer BEFORE entering your information and then SAVE AGAIN after completing the form. form. Have this form signed by the beneficiary or holder of power of direction if different than the beneficiary.   2. Send the original signed Direction to Convey form and fee payment to the Indiana Land Trust Company office. We will prepare the deed and related documents according to the direction.

Thank you for choosing Indiana Land Trust Company to serve as your trustee! Though our site can’t cover every scenario, we have tried to include information regarding some of the more common requests. However, if you have any other questions or concerns, please contact our office at  (219) 661-2792 .

*The statements made on this web page and any page that follows within the Indiana Land Trust Company website are not intended, and shall not be construed to expressly or impliedly issue or deliver any form of written guaranty, affirmation, indemnification, or certification of any fact, insurance coverage or conclusion of law.  

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• Trust & Estate Planning

Beneficial Interest: Different Types and Examples

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

What Is Beneficial Interest?

A beneficial interest is the right to receive benefits on assets held by another party and is often evident in matters concerning trusts.

Most beneficial interest arrangements are in the form of trust accounts, where an individual, the beneficiary receives income from the trust's holdings but does not own the account.

Key Takeaways

• A beneficial interest is the right to receive benefits from assets held by another party.
• A Crummey trust is often set up by parents for their children where the beneficiary has an immediate interest.
• A beneficiary receives income from a trust's holdings but does not own the account.

How Beneficial Interest Works

A beneficiary interest will change depending on the type of trust account and the rules of the trust agreement. 

A beneficiary typically has a future interest in the trust's assets meaning they might access funds at a determined time, such as when the recipient reaches a certain age.

Trusts for Children

For example, a parent may set up a testamentary trust to benefit their three children upon the parent's death. The trust creator can stipulate the distribution of the account's assets to the children during the parent's lifetime.

Additionally, a beneficial interest can be a house owned by a trust, where a child is a trust beneficiary and can use the house, both income tax and rent-free.

Beneficial interest will alter depending on the rules of a trust's arrangement and the type of trust account.

Parents may set up  Crummey trusts , funded through annual gifts, to take advantage of gift tax exclusions. With Crummey trusts, the beneficiary has an immediate interest and access to the trust's assets for a specified timeframe. For example, the beneficiary may be able to access the trust's funds within the first 30 or 60 days after the transfer of a gift. Those assets fall under the distribution rules governing the trust.

Other Examples of Beneficial Interest

Another example of beneficial interest is in real estate. A tenant renting a property is enjoying the benefits of having a roof over their head. However, the renter does not own the asset.

Beneficiary interests can also be applied to employer-sponsored retirement plans such as 401(k)s and Roth 401(k)s, as well as in individual retirement accounts (IRA) and Roth IRAs. 

With these employer-sponsored accounts, the account holder may designate a named beneficiary who can benefit from the account funds in the event of the account holder's death. The rules governing beneficiary interest in these cases vary widely depending on the type of retirement account and the identity of the beneficiary.

A spouse beneficiary to an IRA has more freedom over the assets than anyone else. The surviving spouse can treat the account as their own, rollover assets into another plan—if the IRS allows— or designate themselves as the beneficiary. 

A non-spouse beneficiary to an IRA, for example, can't treat the account as their own. Thus, the beneficiary can't make contributions to the account or roll over any assets in or out of the IRA.

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Beneficial Interest: Everything You Need to Know

A beneficial interest entails a right in receiving benefits from assets by other parties. 3 min read updated on February 01, 2023

Beneficial Interest

A beneficial interest entails a right in receiving benefits from assets by other parties. This type of interest usually pertains to trust accounts. Trust accounts amount to an individual, also called the beneficiary, who has an interest in the assets of the trust. The beneficiary accepts income from any holding from the trust, but that person is not the owner of the account.

The beneficiary interest changes based on the trust type and the procedures regarding the agreement. The beneficiary usually has an interest in any assets that the trust garners, which means they may get access to the funds at a certain period. For instance, the beneficiary could gain access to the trust’s assets when he or she reaches a certain age.

For instance, a parent can establish a testamentary trust that would benefit their two children when the parents die. The creator of the trust can establish distribution of an account’s assets to children during the lifetime of the parent.

Types of Trusts

Parents can establish a variety of other trusts . Parents can also create Crummey trusts, which get funding via annual gifts, to utilize gift tax exclusion allowances. When it comes to Crummey trusts, the beneficiary has an immediate access and stake in the trust for a certain period. For instance, the beneficiary can access the funds of the trust within the first month after a gift transfer. Such assets go under the distribution rules surrounding the trust.

• Example: The beneficial interest pertains to real estate. A tenant that rents a property enjoys the benefits of a home. With that, the renter does not own the home.

Retirement Accounts

A beneficiary interest can also pertain to an employer-based retirement plan in the following forms:

• Roth 401(k)s

With such accounts, account holders can name a beneficiary who benefits from the funds in case of that account owner’s death. The rules that govern the interest in such cases depend on the retirement account type and the beneficiary. Spouses of beneficiaries have greater reign over the assets. A surviving spouse may use the account or roll over the assets into a separate plan, but only if the IRS permits it. Also, they can appoint themselves as a beneficiary.

• Example: Non-spouse beneficiaries cannot govern the account. Therefore, the beneficiary cannot issue contributions into an account or rollover the assets of the IRA.

Beneficial Interest Breakdown

A beneficial interest can be described as a right, advantage, or benefit that an individual enjoys from properties or other forms of trusts that stem from agreements without controlling or owning a property. 

It can be separated from the rights of the trustee, the person holding the legal title. The beneficiary also enjoys an interest in the trust property.

• Example: If Jim enters into an agreement with Bob that Jim will pay Sally a certain amount, then Sally is owed a beneficial interest. Even though minors cannot enter into partnership agreements, they can still have a beneficial interest in a partnership in the sharing of profits, but this would not include the losses.

Beneficial interest is a term that can be hard to determine because it entails a mixture of obligations and property law. A trust is the product of an agreement between two parties: the settlor and trustee. Such an agreement is usually made to benefit a third party holding beneficial interests in the asset of the trust. The Hauge Convention on the Law Applicable to Trusts establishes the word trust as the legal relationship that’s created between a settlor when assets have been assigned to the control of trustees to benefit a beneficiary for a certain reason.

The third-party agreement comprises a contract between two people to benefit another party. If a promisee violates the agreement, the third party, the person with the beneficial interest, has a right to a violating party to recover under the agreement. Overall, the beneficial interest is a hybrid nature because it entails a trust, which is the interest created under the agreement (laws of obligation), while a claim underlies an interest to the assets (law of property).

To learn more about a beneficial interest, you can post your job on UpCounsel’s website. UpCounsel’s attorneys have graduated from some of the best law schools in the nation and will help you in any matter pertaining to trusts or retirement accounts. Moreover, they will defend your beneficial interests in court if are not getting access to your full rights within an agreement.

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LLC Membership Interest Assignment

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An LLC Membership Interest Assignment is a document used when one member of an LLC, also known as a limited liability company, wishes to transfer their interest to another party entirely. LLC Membership Interest Assignments are often used where a member in an LLC is leaving or otherwise wants to relinquish the entirety of their interest in the company.

An LLC Membership Interest Assignment normally happens well after the LLC has already been operating . To form a limited liability company in most states, any party must begin with Articles of Organization (sometimes called Certificates of Formation or other varying names). These documents will get the LLC formed and in compliance with state laws.

A limited liability company can operate and be formed for any reason (except illegal ones). For example, even if it is a small business, like dog-walking, the owners might want to have an LLC to protect themselves. If so, and if any owner decided to one day relinquish their interest in the LLC , that owner could use this LLC Membership Interest Assignment to assign it to another person.

LLC Membership Interest Assignments are short, relatively easy documents which contain all the information needed to transfer an interest in an LLC.They contain a place for both the person transferring the interest (called the Assignor) and the person receiving the interest (called the Assignee) to execute the document.

How to use this document

This document can be used when any party would like to transfer the ownership of an interest in an LLC or when any party would like a membership interest in an LLC transferred to them, as long as the current owner of the membership interest agrees. It should be used it when both parties understand that the membership interest will be completely assigned and wish to create a record of their agreement, as well as a document that the LLC will likely keep on file.

This document will allow the form-filler to input details of the identities of both parties, as well as the details of the membership interest, such as percentage and whether or not it comes with voting rights . It also has an optional addendum at the end, in case full consent is needed from all the rest of the members of the LLC .

Please keep in mind that this form requires both signatures , from the party assigning the interest and the party receiving it.

Applicable law

LLC Membership Interest Assignments are subject to the laws of individual states . There is no one federal law covering these documents, because each individual state governs the businesses formed within that state.

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At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

Guides to help you

• How to Sell your Percentage in an LLC
• How to Sell your Business
• How to Transfer Business Ownership

Other names for the document:

Assignment of Interest for LLC Member, Interest Assignment for LLC Membership, LLC Interest Assignment Agreement, Member Interest Transfer for LLC, Membership Assignment for LLC

Country: United States

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• Practical Law

New standard document on deed of assignment of beneficial interest in land

Practical law uk legal update 4-591-5405  (approx. 2 pages).