GG News Bureau

New Delhi, 10^th September. As Queen Elizabeth II died on Thursday at the age of 96 at her home in Scotland, Balmoral Castle, there is speculation about who will inherit Queen Elizabeth II’s wealth.

Her Majesty’s personal assets from her 70 years on the throne total over $500 million, which Prince Charles will inherit when he is crowned king.

Though that may appear simple, the Queen’s fortune—and what happens to it now—is complicated; much of what appears to be hers actually belongs to the so-called Royal Firm, the $28 billion empire that members of the British royal family such as King George VI and Prince Philip once referred to as “the family business.”

Here’s a rundown of what will happen to the Queen’s fortune now that she’s passed away.

How is the Queen Compensated?

The Queen received income from a taxpayer fund known as the Sovereign Grant, which is paid to the British royal family on an annual basis. It stems from King George III’s agreement to give up his income from Parliament in exchange for a fixed annual payment for himself and future generations of the royal family. It was known as the Civil List until 2012, when it was replaced by the Sovereign Grant.

In 2021 and 2022, the grant amount was set at slightly more than 86 million pounds. These funds are used for official travel, property maintenance, and operating or maintenance costs at Buckingham Palace, the Queen’s household.

However, the Queen is paid more than just an annual salary.

A $28 Billion Empire

The Monarchy PLC, also known as the Firm, is a group of senior members and public faces of the House of Windsor, the reigning royal family of which the Queen is the head. They run what can be considered a global business empire, bringing hundreds of millions of pounds into the UK economy each year through televised events and tourism.

The Firm includes Her Majesty and seven other royals: Prince Charles and Camilla, Duchess of Cornwall; Prince William and Kate, Duchess of Cambridge; Princess Anne, the Queen’s daughter; and Prince Edward, the Queen’s youngest son, and Sophie, Countess of Wessex.

Her Majesty and seven other royals are members of the Firm: Prince Charles and his wife Camilla, the Duchess of Cornwall; Prince William and his wife Kate, the Duchess of Cambridge; Princess Anne, the Queen’s daughter; and Prince Edward, the Queen’s youngest son, and his wife Sophie, the Countess of Wessex.

As of 2021, the monarchy owned nearly $28 billion in real estate assets that could not be sold. It includes,

• The Crown Estate is worth $19.5 billion.
• Buckingham Palace is worth $4.9 billion.
• Cornwall’s Duchy: $1.3 billion
• Lancaster Duchy: $748 million
• Kensington Palace is worth $630 million.
• Scotland’s Crown Estate: $592 million

Though the family does not profit personally from the business, the goal is to boost the economy, which can then provide wealth to the Windsors through free media coverage and royal warrants—essentially “stamps of approval” on high-end products, according to Forbes—which increase revenue for warrant holders.

The Crown Estate

The Crown Estate is a collection of lands and holdings belonging to the British monarchy that were held by Queen Elizabeth II; however, this is not private property she owned herself; instead, it is managed by a semi-independent public board. The Crown Estate announced a $312.7 million net revenue profit for the fiscal year 2021-2022 in June, up $43 million from the previous year.

“In what has been another year of change and disruption, our diverse portfolio continues to demonstrate its strength and resilience through our return to the public purse,” Crown Estate CEO Dan Labbad said in the announcement.

According to the Royal Household, funding for the Sovereign Grant comes from a percentage of revenue profits, which was initially set at 15%. The grant was increased to 25% in 2017-2018 to help fund the refurbishment of Buckingham Palace, and it is scheduled to be reduced to 15% by 2028.

The grant is used to cover official expenses such as staff payroll, security, travel, housekeeping, and maintenance. However, the Queen and her extended family’s private expenses are covered by a separate allowance known as the Privy Purse.

The Royal Purse

The Queen’s Privy Purse is essentially a portfolio of properties and assets that have been held in trust since the 14th century and provide the Majesty with private income from the Duchy of Lancaster.

“At the end of March 2022, the Duchy of Lancaster controlled $652.8 million in net assets, resulting in a net surplus of $24 million.” Property and financial assets are examples,” according to a statement on the Duchy of Lancaster website.

The net assets are not paid directly to the Queen, but the excess funds of $24 million are. This funding is taxed and primarily used to cover expenses not covered by the Sovereign Grant.

Personal Assets of Her Majesty

According to Business Insider, the Queen has amassed over $500 million in personal assets, owing primarily to her investments, art collection, jewelery, and real estate holdings, which include the Sandringham House and the Balmoral Castle. After she dies, the majority of her personal assets will be passed down to Prince Charles when he ascends to the throne.

When the Queen Mother died in 2002, Her Majesty inherited nearly $70 million, which included investments in paintings, a stamp collection, fine china, jewels, horses, and even a valuable Faberge egg collection. The collection includes paintings by Monet, Nash, and Carl Fabergé.

There is a special legal provision in place that exempts the Queen from paying inheritance tax on her mother’s estate. This provision will also apply to Prince Charles. As agreed with former Prime Minister John Major in 1993, inheritance from sovereign to sovereign is exempt from the 40% inheritance tax, preventing the royal family’s wealth from eroding.

However, Prince Charles will not inherit the estate of Scotland, the Crown Estate, the Duchy of Lancaster, the Duchy of Cornwall, and the Buckingham and Kensington Palaces directly. He will only receive the personal assets that Queen Elizabeth II has specifically designated for him.