wbenson
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It is customary that a son like Harry that is third in line for the throne (as Prince Andrew was at one time) to be given a Royal Dukedom. My guess is that Prince Harry will become Duke Of Lancaster - which is the only royal dukedom that is available at present.
That would call into question the ability of the monarch to use the funds from the Duchy of Lancaster. Those funds make up quite a large chunk of the monarch's private income.
There is also no such thing as a "Royal Dukedom." There are dukedoms that are customarily originally granted to royals, but they need not stay that way, and completely new ones (using either new titles or old ones that weren't royal) can be created. The Dukedoms of Clarence, Cambridge, Connaught and Strathearn, and Cumberland are currently extinct, as well.
I am guessing that the Queen can transfer any title she wants, and will, with Prince Charles approval, probably transfer the title Duke of Rothsay onto William until he fully becomes Prince Of Wales.
She can't transfer any titles at all; she can only create new ones. Transferring it would require an Act of Parliament, as it would change the lawful succession of the Dukedom. The Act of the Scottish Parliament creating it provides that the title shall be held by "the first-born Prince of the King of Scots for ever."
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