‘Duchy!’ King Charles III’s Massive Inheritance from the Queen Will Be Completely Tax Free

Hugo Burnand/PA Wires

King Charles III has inherited — or is in process of inheriting — a massive fortune from his recently departed mother, Queen Elizabeth II. But unlike his British subjects, who are forced to pay a 40 percent inheritance tax, he will pay nothing.

This is according to a rather detailed explainer published by the New York Times that paints King Charles as wealthier than you might even suspect but largely due to a savvy and engaged approach to his own finances.

Duchy: That’s that word for land controlled by a Duke. The now-former Duke of Wales already owned a remarkable portfolio that, unlike his mother, who delegated responsibility, the NY Times reports that Charles was more engaged, reporting that “Over the past decade, he has assembled a large team of professional managers who increased his portfolio’s value and profits by about 50 percent.”  The article adds:

Today, the Duchy of Cornwall owns the landmark cricket ground known as The Oval, lush farmland in the south of England, seaside vacation rentals, office space in London and a suburban supermarket depot. (A duchy is a territory traditionally governed by a duke or duchess.) The 130,000-acre real estate portfolio is nearly the size of Chicago and generates millions of dollars a year in rental income.

The conglomerate’s holdings are valued at roughly $1.4 billion, compared with around $949 million in the late queen’s private portfolio. These two estates represent a small fraction of the royal family’s estimated $28 billion fortune. On top of that, the family has personal wealth that remains a closely guarded secret.

Good for Charles for literally not resting on his laurels and proving the adage “it takes money to make money,” amirite?!

Thing is that Charles will also benefit from a massive influx of wealth from her mother’s estate. Or is it the United Kingdom’s estate of which he is now the legal owner? Honestly hard to follow, and the whole thing seems remarkably daft to me, which is odd that a nation of such stunning intellect would abide by this ridiculous tradition. But I digress!

Here’s the tax-free bit from the article that is referenced above:

As king, Charles will take over his mother’s portfolio and inherit a share of this untold personal fortune. While British citizens normally pay around 40 percent inheritance tax, King Charles gets this tax free. And he will pass control of his duchy to his elder son, William, to develop further without having to pay corporate taxes.

So King Charles III is not just super wealthy, he’s super DUPER wealthy and is benefitting not just from “lineage” but also special laws that keep him from paying inheritance taxes his subjects are forced to pay. It’s perhaps the most effective loophole ever, one we might expect to hear proposed by Grover Norquist here stateside.