William and Harry's Inheritance

[HRH_Liz]

Just wondering but how much money would they get?

 

[Duchess]

with william set to inherit his share of his late mother's estate, the 11K he dropped at the night club last weekend wasn't a big deal.

 

[CasiraghiTrio]

Once William becomes Duke of Cornwall and Charles becomes King, the trust automatically terminates and the remaining money is distributed in equal shares to the Queen Mother's living grandchildren or their heirs.

Peter Phillips already got about £800,000 right? He used it to buy a London flat that he now rents out, well according to The Daily Mail.... I know, not the most reliable, maybe it's wrong. He might have actually inherited this money from his paternal grandparents, I suppose.

 

[samgee]

according to this magazine i was reading, when he turns 25 william will be able to draw on $800,000 every year from his mothers estate. is this true? considering this was the nz women's weekly i wouldnt be surprised if it was a pile of rubbish.....

 

[CasiraghiTrio]

On this article from CBS News online: It says Prince Harry took control of GBP £2.5million of his inheritance from Queen Elizabeth the Queen Mother on his 21st birthday. It says that amount is equal to about US $4.5 million. Source: CBS News online/17 September 2005

As for Diana, she left behind a GBP £21.5 million estate, which is stated in many sources, but I remember it specifically from a NY Times article. I will try to recap the source info. if anyone is interested. I also read that the parts of the estate inherited by her sons (which I gather from the same source was the bulk of it) was taxed for death duties so that these inheritance taxes absorbed about 40% of it. It says that when each prince is 30, he will inherit his slice.

The remainder of the estate was divided for Paul Burrell and the 17 godchildren, apparently. I don't know how accurate that is, though. I think the godchildren did not inherit much, and I imagine Diana would have left some money for her neices and nephews as well.

 

[Roslyn]

Below is a link to Diana's will and codicil and orders made by the Chancery Division in December 1997 modifying the terms of the will. I have only just seen the orders for the first time and it has come as a bit of a surprise.

The original will was fairly straightforward. It provided for the executors to distribute chattels in accordance with separate written wishes, and for the residuary estate to be divided equally between William & Harry at 25. There was no provision for Burrell.

Then, after Diana died, there was an approach to the Court to vary the terms of the will, which I think is a bit odd but which was accepted by the Court as being for the benefit of the infant beneficiaries. I haven't digested the new provisions, but they introduce a gift of GBP 50,000 for Burrell and some interesting concepts including some relating to intellectual property rights which I assume relate to the way it was then proposed to administer the estate for the production of income. Anyway, the boys still seem to take their share at 25.

Will and codicil:
Court TV Online - FAMOUS WILLS

Orders varying the will:
Court TV Online - FAMOUS WILLS

 

[CasiraghiTrio]

Anyway, the boys still seem to take their share at 25.

Yes, I think they take control of their trust at age 25 but the money is kept in individual trusts until they are 30. This way, they won't pay unnecessary taxes on it. The money is no doubt sitting in a bank in Liechtenstein, gathering increases from interest and avoiding taxes. unk: That's what I would do if it were my money, anyway!!

 

[BeatrixFan]

QUEEN MUM LEFT HARRY 'PEANUTS'

That's alright. It'll go nicely with the gin left to him by Princess Margaret.

 

[branchg]

William and Harry are very wealthy. We don't have to worry.

 

[Royal Fan]

What Happens to Henrys Money if He were to die in Iraq? will that go to William ect ect

 

[Iluvbertie]

What Happens to Henrys Money if He were to die in Iraq? will that go to William ect ect

That would depend on his will.

I read yesterday that he has had to make one before deploying.

He could leave it all to Chelsy, or charity, or William, or his father, or ME!!.


I think you get the idea - it is up to him to spell out his wishes in his will.

 

[branchg]

Well, any portion of his trusts not yet dispersed to him outright (including his mother's estate, and the income from trusts left to him by The Earl Spencer and The Queen Mother) would be granted to the next beneficiary stated in the trust documents (likely to be William).

His personal money in his bank accounts can be left to whomever he wishes in his will.

 

[CasiraghiTrio]

Prince Harry will return to England safe and with every bone and joint perfectly healthy. He must prepare a Will before he deploys, but that Will is going to be filed by his law firm (likely the same as his father's firm, Harbottle & Lewis) and updated over the years, to be considered after his timely death at the age of 80 or more....... I guess the Windsor males don't live quite as long as the Windsor women, but still very long!
He will serve in Iraq and return in wonderful condition..... a hero! along with ALL of his men! All of them, alive and well!

 

[iowabelle]

My guess is most to William, and some to his charities, particularly the one in Lesotho. And a significant gift to Chelsy.

 

[HRH Kimetha]

25 seems like a milestone type of birthday. Has anything been said about what William might be doing for his birthday next month?

Doesn't William get more of his trust at 25?

 

[Sister Morphine]

Doesn't William get more of his trust at 25?

Him and Harry don't recieve any of the trust that Diana left them until they are 30.

 

[Iluvbertie]

Him and Harry don't recieve any of the trust that Diana left them until they are 30.

My understanding is that they have been able to access some of the interest now, will be able to access all of the income generated by the Trust fund when they reach 25 and access the actual capital in the funds at 30. In other words it is a staggered access.

That was what was reported at the time of the will being made public.

 

[cowarth]

Why do the trustee's of the fund think the princes will be mature enough at age 30 to manage there money correctly?

 

[Sister Morphine]

Why do the trustee's of the fund think the princes will be mature enough at age 30 to manage there money correctly?

I'm pretty sure they can manage their own money well right now, but that's what Diana's will stipulated.

 

[Iluvbertie]

I'm pretty sure they can manage their own money well right now, but that's what Diana's will stipulated.

Her will actually stipulated that the get the inheritance at 25 but there was an application for a variation made which changed the terms a little bit - to being income at 25 and capital at 30 (along with a payment to Paul Burrell).

 

[Sister Morphine]

Her will actually stipulated that the get the inheritance at 25 but there was an application for a variation made which changed the terms a little bit - to being income at 25 and capital at 30 (along with a payment to Paul Burrell).

That makes sense, re: graduated payments. Rather than getting it all at one time, you get parts of it along the way....I suppose that allows for more interest to accrue?

 

[cowarth]

What are the trusts worth now?

 

[kjrn]

I don't know how much the trusts are worth, but I have heard (whether it is true or not), that the yearly pay out at this point is between 250,000 and 300,000 a year.

It's also been mentioned on one of these websites before but I have nothing to support it that I can cite (I did find a website once that explained these Royal wills and you could read Diana's) that so far William has donated any payout from his great-grandmothers estate to charity as well as his army pay. I just remember reading that William's yearly payout from great-grandma is less than Harry's because he has other money that he will receive and something about it being simply like an allowance until his father is King and then the remainder goes back into the estate for distribution to the other great grandchildren. Something like that.

It was also mentioned that although Harry received money from grandpa Spencer, William did not or at least not as much for the same reason.

Again I am not an expert on this and have no idea whether these suggestions are fact.

 

[cowarth]

I don't know how much the trusts are worth, but I have heard (whether it is true or not), that the yearly pay out at this point is between 250,000 and 300,000 a year.

Over the last 10 years, William has donated a great deal of money to charity, $250,000 x 10 = 2500,000, if my math is correct. The causes he supports must be greatful for his support.

 

[Roslyn]

Over the last 10 years, William has donated a great deal of money to charity, $250,000 x 10 = 2500,000, if my math is correct. The causes he supports must be greatful for his support.

I don't understand what you mean here. What was the source of his alleged income when he was 15? Is it in US dollars or do you mean pounds? I can't imagine him being allowed to give away 250,000 pounds per annum to charity when he was a teenager even if he had it.

According to Richard Kay in an article published in the June 2007 Australian Women's weekly, William will draw an income of "something in the region of $725,000 a year" from his late mother's estate from the date of his 25th birthday. As it was published in an Australian magazine, I imagine this means Australian dollars, which converts to a bit over 300,000 GBP.

 

[kjrn]

I'm sorry if this was confusing. He doesn't get any pay out from his mother's estate until he turns 25 next month. I've heard this pay out as anywhere between 250,000 and 300,000 GBP a year.

What I was saying he donated to charity was the annual allowance (or whatever the correct term is) from his great-grandmother's estate (Elizabeth, the Queen Mother). Supposedly she set aside money for each great granchild (among others). One article said this is how Peter bought his residence. Anyway for WIlliam and Harry it is not a lump sum payout but a yearly thing. When Charles becomes King, supposedly the money not paid out is returned to the state and redistributed to the other grandchildren because Charles has more than enough money to leave to his children.

In several places I've also read that the queen has set up trust funds for her grandchildren. William has the least as the one who stands to inherit the most from other areas.

Grandpa Spencer supposedly gave Harry more than WIlliam for the same reason.

These are just from various articles which may or may not be accurate. Probably only their lawyers and financial advisors know or understand the ins and outs of royal inheritances.

 

[cowarth]

He will not start giving to charity till he turns 25?

 

[branchg]

William and Harry inherited over $40 million from Diana's estate ($28 million from her divorce settlement with the remainder from the Fermoy and Spencer inheritances). At this point, the income is payable without restriction until they are 30, at which time they will start to receive outright distributions of the principal of the trust. Most trusts pay out a pretty conservative percentage in order to maximize growth for the future. As such, it is likely they are each receiving about $500,000 annually.

The Queen Mother transferred her personal fortune ($10 million) into an irrevocable trust for her great-grandchildren years before she died. Harry receives a small income from it, while receiving a sizable income from his trust set-up by Earl Spencer ($5 million). Once The Queen dies, the irrevocable trust automatically terminates, and the remaining principal is distributed to Anne, Andrew and Edward in equal shares.

Charles gets nothing because he will inherit the vast majority of his mother's personal fortune as the new Sovereign. William gets very little because he will become The Duke of Cornwall and have a sizable income from the duchy. Harry is provided for by his Spencer trust and his mother's legacy.

 

[Sister Morphine]

He will not start giving to charity till he turns 25?

No, that isn't what they were saying. I'm sure William has been giving to charity before his 25th birthday, I think they were questioning someone at the age of 15 giving away hundreds of thousands of pounds a year to charity. One would think that at that age, he wasn't in possession of that kind of funds in the first place.

 

[cowarth]

How much is given to charity?