Photo Credit: Max Mumber | Indigo
There will never be any revelation of any properties passed down from one Royal to another. This only implies that any private fortune the Queen possessed before passing away last week will only be known to the Royal family.
Forbes estimated that Queen Elizabeth’s fortune, which included her investments, art and jewelry collections, and two homes, Sandringham House in Norfolk and Balmoral Castle in Scotland, was worth over $500 million. Her late father, King George VI, gave the two properties to the Queen.
“[Royal wills] are hidden, so we have no idea actually what’s in them and what that’s worth, and that’s never ever made public,” said author and lecturer from Lancaster University Laura Clancy.
The new king, King Charles III, and his successor will now get the great majority of the royal family’s riches, nevertheless. The estimated total fortune in assets, properties, and lands is at least £18 billion, or $21 billion.
Prince William, the heir to the throne, simply got richer following Queen Elizabeth II’s death as the line of succession advanced. The estate belonging to the Duchy of Cornwall, which the prince inherited from his father, is already in his hands. Southwest England is home to 140,000 acres of territory known as The Duchy.
The estate, valued at $1.2 billion, was established in 1337 by the late King Edward III. Under the direction of the Duke of Cornwall, the estate’s revenues would be put to use for public and private initiatives, particularly philanthropic ones. Prince William presently holds this position.
What is the Sovereign Grant
The Crown Estate, a £16.5 billion property now entrusted to King Charles III under his new role as king, makes up the majority of the Royal Family’s wealth. In contrast, a 1760 agreement stipulated that the government would receive the estate’s profits and pay the king a share in exchange. This is called the Sovereign Grant.
The estate covers large sections of downtown London and the seabed in Wales, Northern Ireland, and England. The chief executive and commissioners of the Crown Estate are all chosen by the monarch in power or suggested by the prime minister at the time.
The Crown Estate earned nearly £313 million ($361 million) during the most recent fiscal year. According to the agreement, the UK government gave the Queen a Sovereign Grant of around £86 million ($100 million). Sources claim that the grant’s proceeds are used to pay the Royal Family’s employees and upkeep their estates.
Previously, 15% of the Crown Estate’s overall profit went toward the Sovereign Grant. To enable the Crown to pay for the repairs and upkeep of Buckingham Palace, the percentage was raised to 25% in 2017.
The new king also holds the Duchy of Lancaster, which is worth £653 million or $764 million, in addition to the Crown Estate. The Duchy was established as a private domain in 1265. The estate’s earnings cover the costs not paid by the Sovereign Grant and additional expenses spent by the Royal Family members.
Restrictions to properties
Although the Royal family members benefit from being linked, there are still limitations on how they may handle their estates. For instance, the king was only permitted to employ the Sovereign Grant while carrying out his royal responsibilities. Furthermore, he is not permitted to collect their duchies’ revenues in any way.
The income from the duchies will be invested back into the estates, claims the Institute for Governments. Additionally, the UK Treasury must first consent to any significant transactions undertaken by the Royal Family.
“Of course, voluntary income tax [is] not a fixed rate, and they don’t have to declare how much income they’re making their tax on. So actually, it’s just like plucking a figure out of thin air.”
Opinions expressed by CEO Weekly contributors are their own.