By Katherine Tinsley
1:25pm PDT, Aug 25, 2025
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Queen Elizabeth II's death in 2022 wasn't just heartbreaking for three members of the royal family. It was also quite costly. Several of the late monarch's relatives took significant financial hits when she died.
Keep reading to see who was finally impacted — and why…
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Queen Elizabeth II had a £380 million fortune (about $444 million) at the time of her death, but a tax policy might've prevented three of her children from inheriting her wealth. Former U.K. Prime Minster John Major's administration ruled in 1993 that only "transfers of assets from one sovereign to his or her successor" would avoid the 40% inheritance tax applied to assets worth more than $439,530. In other words, anything she left to Prince Andrew, Prince Edward or Princess Anne would be heavily taxed.
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John Major implemented the tax policy to "prevent the dilution of the Crown's wealth and ensure the continuity of the monarchy's functioning." He explained at the time, "The monarchy as an institution needs sufficient private resources to enable it to continue to perform its traditional role in national life."
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King Charles III manages the Sovereign Grant, which is what finances the royal family's lifestyle. The royal family reportedly cost £132million to manage in the 2024-2025 fiscal year. "In relation to assets which can properly be regarded as private, the arrangements provide that inheritance tax will not be paid on gifts or bequests from one sovereign to the next, but will be payable on gifts and bequests to anyone else," the U.K. government states.
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While it remains unknown if Princess Anne, Prince Edward or Prince Andrew received an inheritance from Queen Elizabeth II, the Princess Royal and Duke of Edinburgh do receive a salary as working royals. The Duke of York, however, stepped away from royal duties in 2020 after he was accused of assault and having close ties to Jeffrey Epstein.
