Experts reveal why Prince Harry's $8.5M inheritance from Queen Mother may be tax-free
LONDON, ENGLAND: Investment experts have indicated that Prince Harry's significant $8.5 million inheritance will not be subject to tax deductions.
The Duke of Sussex received a substantial cash gift on his 40th birthday last month, made possible by the foresight of his late great-grandmother, Queen Elizabeth, the Queen Mother.
The late mother of Queen Elizabeth II established a trust fund worth $90 million for her family, stipulating that Harry would receive his share upon turning 40.
How will Prince Harry avoid inheritance tax on his $8.5M gift?
It was originally reported that Prince Harry would be taxed on his earnings, but the investment firm Stocklytics has indicated that the royal family has circumvented the usual tax regulations through the Queen Mother's estate planning.
“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.
The firm added, “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.”
“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,” they went on to say.
“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.
Contrary to his estranged brother Prince William, who was honored with a ceremonial bell concert at Westminster Abbey for his milestone birthday, Harry is said to have received a greater share than William on his 40th.
Prince William and Princess Catherine reportedly upset by Harry's inheritance share
Reports had surfaced that Prince William and his wife, Princess Catherine, were left feeling "disgusted" by the share of the inheritance received by Prince Harry.
“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 informed the media outlet.
They said, “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 substantial amount is a significant boost to Harry and his wife Meghan Markle's net worth, which is estimated to be around $60 million, the New York Post reported.
Since stepping back from royal duties in 2020 and moving to the US, their financial situation has significantly improved thanks to various high-profile projects they have undertaken.
