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Prince William inherited 685-year-old property worth $1 billion

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CNN business

Royal wills are never made public. That means it remains her family what happens to much of the Queen’s personal wealth after her death last week. secret.

Forbes estimated last year that the late monarch’s personal fortune was worth $500 million, comprising her jewelry, art collections, investments and two mansions, Balmoral Castle in Scotland and Sandringham House in Norfolk. . The Queen inherited both her estates from her father, George VI.

“[Royal wills] Laura Clancy, a media lecturer at Lancaster University and author of a book on royal finances, told CNN Business.

But the royal family’s vast fortune — totaling at least £18 billion ($21 billion) in land, property and investments — has followed a well-trodden path over the centuries, with the new monarch King Charles. passed on to its heirs. .

CNN reporter predicts what we’ll see from Prince Charles

The line of succession makes Prince William, who is currently first in line to the British throne, a much richer man.

The future king will inherit the Principality of Cornwall from his father. The Principality owns a vast portfolio of land and properties covering nearly 140,000 acres, most of it in the South West of England.

Founded in 1337 by Edward III, the estate is worth around £1 billion ($1.2 billion) according to last year’s financial results.

Proceeds from the estate “will be used to fund the public, private and charitable activities” of the Duke of Cornwall, its website says. That title is now held by Prince William.

The £16.5 billion ($19 billion) Crown Estate is the largest portion of the family fortune and currently belongs to King Charles as monarch. But under the dating arrangement In 1760, the monarch handed over all profits from the estate to the government in return for a portion called a sovereign grant.

The estate includes extensive grounds in central London and the sea floor around England, Wales and Northern Ireland. It has corporate status and is governed by a Chief Executive Officer and Commissioner, or Non-Executive Director, appointed by the monarch on the recommendation of the Prime Minister.

Last financial year it generated a net profit of almost £313m ($361m). From there, the British Treasury paid the Queen her £86 million ($100 million) government grant. This equates to her £1.29 ($1.50) per person in the UK.

Most of this money is spent on maintaining the royal property and paying staff.

The sovereign grant typically represents 15% of the estate’s profits. However, in 2017, payments were raised to up to 25% over his next decade to help pay for the renovation of Buckingham Palace.

King Charles also inherited the Duchy of Lancaster, a private estate dating back to 1265. The latest reports put it at around £653 million ($764 million).income from investment cover public costs not met by sovereign subsidies, Support other royal family members.

Despite the enormous amount of money, monarchs and their heirs are limited in how much they can personally benefit from their estates.

The King may only use the Sovereign Grant for His Royal Duties. And neither he nor his heirs are allowed to profit from the sale of property in their principality. . Government Research Institute (IfG).

The UK Treasury will also have to approve all large property deals, IfG said.

Still, unlike the Sovereign Grant Produced by Crown Estate, both The principality is a source of private wealth, meaning owners are not required to provide any details beyond reporting income, IFG said.

London's Regent Street during pandemic lockdown. The prime retail location is owned by Crown Estate.

Last year, King Charles, then Duke of Cornwall, paid himself £21 million ($25 million) from the Duchy of Cornwall.

Both Prince William and King Charles have voluntarily paid income taxes since 1993, according to IfG, but the Duchess is not obligated to pay any form of tax on their estates.

or The move comes a year after the royal family faced strong criticism for planning to use public funds to restore fire-damaged Windsor Castle.

“Of course, the voluntary income tax [is] It’s not a fixed rate and you don’t have to declare taxable income. So it’s really like pulling a character out of nothing,” said Clancy.

Buckingham Palace did not immediately respond to CNN Business when asked for comment.