Typically, real estate, money and other assets go to the State in cases where people die without a will or heirs. However, in the duchies of Lancaster and Cornwall, which are traditionally private property of the Crown, administrators of royal estates receive “bona vacantia”, which means abandoned goods. It is claimed that the funds will be donated to charities, the Guardian wrote.
In fact, only a small percentage of the “bona vacantia” is donated to charities. Most of the money would go towards renovating and renting properties in the Duchy of Lancaster that the King personally owns and uses commercially. According to the Guardian, more than 60 million pounds (around 70 million euros) have been raised in the last ten years.
“Accidental” Financial Blessing
A leaked 2020 Duchy of Lancaster internal policy, codenamed “SA9”, allows real estate managers to invest “bona vacantia” funds in a wide range of profitable portfolios – thus becoming an “accidental” financial gain for King. The Guardian cited a source who sees the income as the king’s “slush fund”.
IMAGO/ingimage The Duchy of Lancaster passed into the possession of Charles after the death of his mother, Queen Elizabeth II
The Guardian identified dozens of deceased people whose money or possessions passed into the king’s inheritance in places including Preston, Manchester, Burnley, Blackburn, Liverpool, Ulverston and Oldham. Much of this “bona vacantia” flows into the duchy’s luxury properties. Critics called the fact that the deceased’s assets were used to maintain the king’s estate “disgusting”, “shocking” and “unethical”.
Buckingham Palace had no comment. A spokesman for the duchy simply said that proceeds from “bona vacantia” should not benefit the royal family, but the general public. This also includes the restoration of buildings in order to protect and preserve them for future generations.
There is no information about investments
After the publication of the article, the Lancaster administration announced that it would invest more than 100 million pounds (around 115 million euros) in investment funds that also focus on ethical aspects. The anti-monarchy organization República spoke of an “admission of unethical investments”. At the same time, the Republic criticized: “But they will still invest money that will be taken from the dead and spent as Charles wishes.”
According to the Guardian, the duchy had not previously disclosed whether its charities had invested in oil or gas, tobacco, arms or mining companies. However, there is now no evidence that the use of “bona vacantia” titles will be changed, the newspaper reported over the weekend.
The Duchy of Lancaster website says proceeds from the “bona vacantia” would go to three registered charities. However, according to the Guardian, reports suggest that only 15% of the £61 million raised was donated.
“Bizarre remnant of feudal Britain”
The Duchy of Lancaster is considered the king’s largest source of income. Earlier this year, Charles received £26 million from the Duchy of Lancaster in his first annual payment since he inherited the estate from his mother, Elizabeth II. Holdings include some of London’s most famous addresses, as well as properties, hotels, castles, offices, warehouses and shops across England and Wales.
Greater Manchester Mayor Andy Burnham called the “bona vacantia” government in the Duchy of Lancaster “a bizarre remnant of feudal Britain”. His Liverpool City colleague Steve Rotheram called for clarification and transparency. “Good causes have been ignored and instead it appears that money has been spent on renovating royal properties,” criticized Rotheram.
“Dairy cows for royalty”
The Duchy of Cornwall, which is traditionally administered by the heir to the throne – Charles’ eldest son, Prince William – also benefits from “bona vacantia” titles. However, this duchy has long followed an ethical investment strategy, which gives it a significant trading advantage. According to the Guardian, they have become “huge cash cows for the royals” and generated profits equivalent to more than £1.2 billion over the last 60 years.