The Queen’s estate is made up of various estates that are inherited by the family and are topped up with gifts and personal acquisitions. One of the queen’s inheritances is PS70 million from her mother. Another inheritance is Balmoral and Sandringham which were gifted to the queen by the former king. The Queen’s estates also include the Duchy of Lancaster.
The Duchy of Lancaster
The Duchy of Lancaster is a private estate that is managed by a deputy. Its wealth comes from one of two lucrative duchies and is a significant source of money for the monarchy. Its financial dealings have left British MPs scratching their heads. Its AAA credit rating allows it to withstand a lot of scrutiny from Parliament, but its financial management is also highly opaque.
The Duchy of Lancaster was established over 700 years ago and has belonged to the monarch since 1399. It is made up of more than 18,000 hectares of land in England. Its holdings include farms, manor houses, commercial properties, and some financial investments.
The Duchy of Lancaster’s wealth is largely derived from revenues. In the past, the monarch had to sell most of his holdings to pay the royal household’s debts. In fact, the late Queen’s wealth totaled about 340 million pounds when she died. The land holdings are not to be confused with the Crown Estate, which has been delivering revenue to the Treasury since 1818.
The Queen’s personal fortune
The personal fortune of Queen Elizabeth II is estimated at $500 million to $628 million. Some of her properties are worth several hundred million dollars. They include Sandringham House in England and Balmoral Castle in Scotland. She also owns some farms and private jewel collections. Most of her estate will pass to her son King Charles. The monarch’s estate is exempt from inheritance tax.
The Queen’s private estate, the Duchy of Lancaster, is made up of agricultural, commercial and residential properties. The Duchy of Lancaster produced $26 million in income during the last fiscal year. The money from this estate is used for official expenses. There are many other private assets that the Queen owns. Some of these include Balmoral Castle in Scotland and the Sandringham Estate in east England.
The Queen’s personal fortune is quite modest compared to tech moguls like Bill Gates, who is worth $115 billion, and Jeff Bezos, the former CEO of Amazon. However, Queen Elizabeth’s royal family’s wealth has helped cement the British monarchy’s brand value, which is now worth nearly $78 billion. It boosts sales of British goods and services and bolsters tourism to the UK.
The late Queen’s estate was estimated to be worth 340 million pounds in 2015. The majority of the estate’s value comes from the Duchy of Lancaster, which is the sovereign’s private estate. The Dukedom exists to provide the monarch with income. The duchy was valued at 652 million pounds at the end of March 2015, with a net surplus of 24 million pounds. Despite its high value, the Duchy of Lancaster does not appear in the Queen’s will and passes from sovereign to sovereign without being taxed.
There have been speculation that the Queen may be leaving some of her personal belongings to her four daughters. One possibility is a tiara that Kate and Meghan wore during their weddings. The tiaras might be a gift from the Queen to them. Future royal appearances could reveal if the princesses received the tiara.
Tax-free inheritance after the death of the Queen and Prince Philip is possible, but there are a few caveats. The Queen’s official residence is not considered private property, and it is not subject to inheritance tax. Prince Philip, however, has his own private estate, and he can pass these to the rest of his family free of inheritance tax.
The government believes that the inheritance tax arrangements are fair and appropriate. The monarchy is not legally obliged to pay taxes and relevant acts of parliament do not apply to the monarchy. It only pays income, capital gains and inheritance tax on a voluntary basis, as set out in the memorandum.
Queen Elizabeth had a personal fortune, inherited assets from her parents, and possessed a large horse stable. She was estimated to have an estate worth over $400 million, and her family still owns the world’s largest stamp collection. However, King Charles, the heir to the throne, will not have to pay inheritance tax on the royal estate after the Queen’s death. In addition, he will not pay inheritance tax on the estate of his mother.