Prince Harry is slated to receive a massive payout ahead of his 40th birthday and this is coming straight from a royal trust.
This trust fund in question is one that the Queen Mother set up for both Prince William and Prince Harry.
The lion’s share of this will be going to the Duke given Prince William’s inheritance of the Duchy of Cornwall estate.
This payout will be just part of the £19million trust fund, slated to be about £7million.
The icing on the cake for this is that Prince Harry is not required to pay any inheritance tax on this property either because of UK laws that dictate an asset must be set up within 7 years of the individual’s death to incur.
Stocklytics experts explained the reason for this by saying, “With Prince Harry set to receive the final instalment of the Queen Mother’s trust fund, valued at £19 million, many Brits may be asking how much inheritance tax he’ll pay – especially as the latest judicial reviews have cost the taxpayer £500,000 each.”
“According to current regulations, inheritance tax only applies to a trust if it was set up within 7 years of the individual’s death. However, since the Queen Mother died in 2002, this trust would no longer be subject to inheritance tax.”
Subsequently “if the Queen Mother had died within the 7 years a trust is subject to inheritance tax, HMRC could have been owed up to £7.47 million.”
“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,” they added.
And “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 £50m and £70m,” either.
“This is due to a deal reached with John Major’s government, which meant the sovereign’s bequests are not liable to taxation,” they added before signing off.
