(The New York Post) - Prince Harry’s hefty $8.5 million inheritance will not be subject to tax deductions, investment experts have said.
The Duke of Sussex received the generous cash gift on his 40th birthday last month — thanks to arrangements made by his late great-grandmother, Queen Elizabeth, the Queen Mother.
The late Queen Elizabeth II’s mother put $90 million into a trust fund for her family and listed that Harry was to access his share of the trust when he turned 40 as one of the fund’s stipulations.
While it was originally reported that Harry would have to pay tax on his earnings, investment firm Stocklytics says the royal family has avoided normal tax rules due to how the Queen Mother planned out her estate.
With Prince Harry set to receive the final installment of the Queen Mother’s trust fund, valued at $25 million, many Brits may be asking how much inheritance tax he’ll pay — especially as the latest judicial reviews have cost the taxpayer $650,000 each,” the firm told The Mirror.
“However, due to the way the Queen Mother’s estate was planned and how long she lived, it is likely HMRC [His Majesty’s Revenue & Customs] will not receive a penny in inheritance tax.”
They continued, “According to current regulations, inheritance tax only applies to a trust if it was set up within seven years of the individual’s death. However, since the Queen Mother died in 2002, this trust would no longer be subject to inheritance tax.”
“If the Queen Mother had died within the 7 years a trust is subject to inheritance tax, HMRC could have been owed up to $9.7 million,” they added.
Unlike his estranged brother Prince William, who received a ceremonial bell concert at Westminster Abbey on the milestone birthday, Harry reportedly received a larger share than what William did on his 40th.
It was previously reported that William and his wife, Princess Catherine, were left “disgusted” at Harry’s share of the inheritance.
“The royal family most likely would have had a detailed, long-standing financial plan to ensure that not only wealth was transferred from generation to generation, but was also completed in a tax efficient manner,” the investment firm told the outlet.
“It is understood the late Queen received the Queen Mother’s entire estate upon her death, mostly of which consisted of property.”
“The Queen did not have to pay inheritance tax on her mother’s estate, valued at between $65 million and $90 million,” they added.
The Post has reached out to Prince Harry’s reps for comment.
The hefty sum is a welcome addition to Harry and wife Meghan Markle’s net worth, which currently sits comfortably at about $60 million.
Their net worth was largely boosted thanks to the several high-profile projects they’ve taken on since quitting royal life in 2020 and moving to the US.
By Nika Shakhnazarova
October 25, 2024
