Equitable interest is the right or interest held by a person or entity that indicates a beneficial interest in the property and gives that person or entity a legal right to claim their portion thereof. For example, in a trust, the beneficiaries have an equitable interest in the trust while the trustee only has a legal interest.. . If one holds an equitable interest they can show that if they are not given their right of equity they will suffer some form of harm and that they are rightfully subject to an equitable remedy. Creditors can also claim an equitable interest in an estate if they can show loss if they are not remedied from the estate. The laws of equitable interest vary from state to state and are more prevalent in common law states.