What is Equitable Interest?

Legal Definition
An equitable interest is an "interest held by virtue of an equitable title (a title that indicates a beneficial interest in property and that gives the holder the right to acquire formal legal title) or claimed on equitable grounds, such as the interest held by a trust beneficiary." The equitable interest is a right in equity that may be protected by an equitable remedy. This concept exists only in systems influenced by the common law (connotation 2) tradition, such as New Zealand, England, Canada, Australia and the United States.
-- Wikipedia
Legal Definition
A real right, but not a legal right, in a property. Examples are a life tenant, or the beneficiary of a trust. Known also as equitable estate.