Prince William owned a 685-year-old estate worth $1 billion

London
CNN Business
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Royal wills are never made public. This means what happens to most of them of the queen After his death last week, he will remain a private wealthy family mystery.

Forbes Last year, the late monarch’s personal fortune was estimated at $500 million, including her jewels, art collection, investments and two residences, Balmoral Castle in Scotland and Sandringham House in Norfolk. The Queen inherited both estates from her father, King George VI.

“[Royal wills] they’re secret, so we have no idea what’s in them and what it’s worth, and it’s never been made public,” Laura Clancy, a lecturer in media at Lancaster University and author of a book on royal finances, told CNN Business.

But the vast majority wealth of the royal family – at least 18 billion pounds ($21 billion) of land, property and investments – is now passing through the well-trodden, centuries-old path. the new monarchKing Charles and his successor.

The line of succession makes Prince William, now first in line to the British throne, even wealthier.

The future king inherits the personal estate of the Duchy of Cornwall from his father. The Duchy owns an extensive portfolio of land and property, covering almost 140,000 acres, the majority of which are in the South West of England.

Created in 1337 by King Edward III, the estate is worth about £1 billion ($1.2 billion), according to its accounts for the last financial year.

Income from the estate is used to fund the Duke of Cornwall’s “public, private and charitable activities,” he said. This title is now held by Prince William.

£16.5 billion ($19 billion), the largest chunk of the family’s fortune to date Crown Estateit now belongs to King Charles as the reigning monarch. But under an arrangement that dates back to history In 1760, the monarch handed over all income from the estate to the government in exchange for a share called the Sovereign Grant.

The property covers large areas of central London estate and seabed around England, Wales and Northern Ireland. It has the status of a corporation and is governed by a chief executive officer and commissioners or non-executive directors appointed by the monarch on the recommendation of the prime minister.

In its last financial year, it made a net profit of almost £313 million ($361 million). Of this, the UK Treasury paid the Queen a Sovereign Grant of £86 million ($100 million). This equates to £1.29 ($1.50) per person in the UK.

Most of this money is spent on maintaining the property of the royal family and paying the salaries of their employees.

The Sovereign Grant is usually equal to 15% of the property’s profits. However, in 2017 the fee was increased to 25% for the next decade to pay for the renovation of Buckingham Palace.

King Charles also inherits the Duchy of Lancaster, a private estate dating back to 1265. at around £653 million ($764 million) according to its most recent accounts. Income from investments Covers and assists with official costs not covered by the Sovereign Grant support other royals.

though large sumsthe monarch and his heir are limited by how much they can personally benefit from their wealth.

The King can only spend the Sovereign Grant on royal duties. And neither he nor his heirs are allowed to benefit from the sale of assets in their duchies. Any foreign earnings are reinvested in the property, according to the release explainer Institute of Government (IfG).

The UK Treasury must also approve all major property transactions, the IfG said.

Again, unlike the Sovereign Grant Created by the Crown Estate, both IFG said the douches are sources of private wealth, meaning their owners are not required to provide any details other than reporting their income.

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

Neither did Prince William King Charles According to the IFG, although both duchies have voluntarily paid income tax since 1993, they are required to pay any form of tax on their estates.

that Clancy said it comes a year after the royal family faced heavy criticism for plans to use public money to repair fire-damaged Windsor Castle.

“Of course, voluntary income tax [is] it’s not a flat rate and they don’t have to declare how much they earn on their taxes. So basically it’s like drawing a figure out of thin air,” Clancy said.

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