King Charles’s estate making millions from assets of people who die without a will
The King is making millions from the deaths of people in the north-west of England by absorbing their assets into his estate and using them to maintain his property empire, it has been reported.
The Duchy of Lancaster, a 46,000-acre land and property estate belonging to the monarch, has collected millions of pounds in recent years under a system dating back to feudal times, The Guardian reports.
Under the system, known as bona vacantia, financial assets belonging to people who die without a will or known next of kin on land owned by the Duchy of Lancaster are collected by the King’s estate.
Over the last decade, more than £60m in funds have been absorbed by the Duchy across a wide area which includes the cities of Liverpool and Manchester, along with Burnley, Preston, and Lancaster.
The estate has long claimed that, after costs, any profits from bona vacantia are passed to charity.
But The Guardian reports that internal documents show that the funds are secretly being used to finance the renovation of properties that are owned by the King and rented out for profit.
Examples include an old farmhouse in Yorkshire, which was transformed into a high-end residential let with bona vacantia revenue.
Sources familiar with the Duchy confirmed to the Guardian that the King’s estate was making considerable savings, with one telling the paper that bona vacantia expenditure was viewed as “free money” and a “slush fund”.
The practice accelerated from May 2020, sources said, when a policy known as SA9 was introduced to give guidance on what bona vacantia could be spent on.
In England and Wales, assets of people who die without a will or living relatives are typically transferred to the Treasury and spent on public services.
However, under a custom with medieval roots, two hereditary estates, or duchies, belonging to the royal family can collect bona vacantia from people who die in two regions in England.
The Duchy of Cornwall, which generates profits for the heir to the throne, collects bona vacantia funds from Cornish residents, while the Duchy of Lancaster covers large parts of the north west.
Both are professional run estate empires, managing a diverse range of properties, from castles to shops, but neither pay corporation or capital gains tax.
They have generated the equivalent of more than £1.2bn in profits over the last 60 years.
The Duchy of Lancaster’s website states that bona vacantia “proceeds” go to three registered charities after costs are deducted, but its accounts suggest that just 15 per cent of the £61m collected in the last decade has been donated.
A spokesperson for the Duchy of Lancaster said: “It is a long-standing principle of UK law that property or goods cannot remain ‘ownerless’. Responsibility for such assets, referred to as ‘bona vacantia’, is transferred to HM Treasury and in the County Palatine revert to the Duchy of Lancaster.
“From monies received as a result of bona vacantia, the Duchy of Lancaster makes an allocation to the ‘late claims fund’ to ensure that any claims received up to 30 years following the administration of an estate can be met. The cost of administering bona vacantia and any costs associated with the upkeep of public buildings and those of architectural importance, is also deducted.
“The balance is allocated between the Duchy of Lancaster Benevolent Fund, the Duke of Lancaster Housing Trust and Jubilee Trust, three charities set up by The late Queen. These charities were established after Queen Elizabeth decided that bona vacantia income should no longer benefit the Privy Purse.
“All three charities actively support local community initiatives, social housing and historic restoration across the Duchy of Lancaster estates.
“On accession to the throne, His Majesty The King reaffirmed that money from bona vacantia should not benefit the Privy Purse, but should be used primarily to support local communities, protect the sustainability and biodiversity of the land and preserve public and historic properties across the Duchy of Lancaster estates.
“This includes the restoration and repair of qualifying buildings in order to protect and preserve them for future generations.”
Buckingham Palace was approached for comment.
