Legal Definitions - pernor of profits

The term pernor of profits refers to a person who receives or benefits from the income, gains, or advantages generated by a particular property. Historically, this individual was understood to be the one who actually "took" or collected the financial returns that a property yielded, regardless of whether they were the ultimate owner.

Here are some examples to illustrate this concept:

• Imagine a situation where an elderly individual, Mr. Henderson, owns a commercial building but has granted his niece, Sarah, the right to collect all the rental income from the tenants for a period of five years. During this time, Sarah would be considered the pernor of profits because she is the one actively receiving and benefiting from the money generated by the property, even though Mr. Henderson remains the legal owner of the building.

• Consider a family farm that has been passed down through generations. The current owner, Maria, decides to lease a portion of her land to a local vineyard owner, David, for grape cultivation. Under their agreement, David pays Maria a fixed annual rent, but he keeps all the profits from the wine produced from the grapes grown on that leased land. In this scenario, David is the pernor of profits from the agricultural output of that specific parcel of land, as he is the one directly benefiting from its productive use.

• Suppose a wealthy investor, Ms. Chen, establishes a trust fund for her adult son, Michael. The trust holds various income-generating assets, such as dividend-paying stocks and bonds. The trust agreement stipulates that all dividends and interest payments generated by these assets are to be distributed directly to Michael on a quarterly basis. In this arrangement, Michael acts as the pernor of profits because he is the individual who consistently receives and benefits from the financial returns produced by the assets held within the trust.