Prince Andrew has told friends he is ‘bewildered’ and ‘in despair’ over the King’s failure so far to share their mother’s fortune.
The King was the sole beneficiary of the Queen’s estate, estimated to be worth more than £650million.
There is said to be ‘some resentment’, particularly from the Duke of York, that he and his siblings have not yet been given what they feel they are owed.
A palace source said the Queen’s fortune had passed directly ‘from monarch to monarch’ because that was the most ‘tax efficient’ way to transfer it. A decision made in 1993 means no inheritance tax is paid on assets moving from one sovereign to another.
But that means none of the Queen’s other children, including Anne and Edward, have received money.
Prince Andrew has told friends he is ‘bewildered’ and ‘in despair’ over the King’s failure so far to share their mother’s fortune
There is said to be ‘some resentment’, particularly from the Duke of York, that he and his siblings have not yet been given what they feel they are owed
A friend of the Yorks said: ‘Andrew is in despair. He’s been left completely in the dark. Andrew’s a member of the family, for God’s sake, yet he had no idea this was coming. I gather he’s checked it out and it’s true. It’s all gone “monarch to monarch”.
‘What’s he meant to do? Go cap in hand to his older brother to keep a roof over his head? Things are going from bad to worse. It’s a disaster.’
The news comes after it emerged yesterday that the King is refusing to pay a £32,000 bill for Andrew’s Indian healer, a yogi who comes to live at Royal Lodge, Windsor, for up to a month at a time.
In need of his own income, speculation is mounting that Andrew might ‘do a Harry’, as one source said, by taking part in a prime time interview.
A palace source said: ‘Andrew hasn’t been uniquely targeted for ill-treatment. Her late Majesty supported her children during her lifetime and had made provision for them already.’
As working Royals, Edward and Anne receive a stipend from the Sovereign Grant to cover costs.
Andrew, however, stepped down from royal duties more than three years ago when he faced accusations of sexual assault, which he continues to deny vehemently.
He paid a multi-million pound fee to settle the civil case against him in America. It is thought he was helped with money from family.
Now, with no official duties and no job, Andrew is reliant on his brother’s generosity.
He has finally moved out of his offices at Buckingham Palace and, as The Mail on Sunday revealed, will almost certainly be forced to quit his 30-room mansion at Royal Lodge and move into Harry and Meghan’s Frogmore Cottage when they vacate later this year.
The King was the sole beneficiary of the Queen’s estate, estimated to be worth more than £650million
A well-placed source said it was the Queen who originally proposed that Andrew move to Frogmore and it was not, as some suggested, a vindictive move from the King.
It is also understood that the Queen had thought it appropriate for William and Kate to move into Royal Lodge in due course.
The King has vowed to Andrew that he will leave him with a home and will continue to pay for his private security after he lost the right to be protected by Scotland Yard.
Royal expert Hugo Vickers said: ‘The Royal Family have done this sort of thing before. The Queen Mother left everything to her daughter, the Queen, in 2002.
‘As the monarch pays no tax, it’s a way of avoiding death duties – keeping the wealth intact. The Queen Mother gave instructions for which of her relatives should receive what gift, but her daughter was left in control. ‘I feel a little sorry for Andrew. I don’t condone what he’s done. Consorting with Jeffrey Epstein was beyond unwise. But he’s not a criminal and he’s been left in a very difficult situation.’
The King does not pay tax on the Queen’s estate thanks to the 1993 decision. The then Prime Minister John Major said this was to prevent the monarchy’s assets being ‘salami-sliced away’ though capital taxation over several generations.He told the Commons that it was ‘necessary to protect the independence of the monarchy’.
Daphne Barak is a renowned interviewer and documentary film maker, whose subjects have included Nelson Mandela, Donald Trump, Hilary Clinton, Johnny Depp and Michael Jackson among many others. Daphne’s best-selling book Saving Amy, based on her months’ filming with Amy Winehouse and her family, is being adapted into a scripted eight part TV series by Halcyon Studios.
Should the King wish to make a cash gift to his siblings – or any friends and family apart from his heir William – this would only be exempt from tax providing the King lives for seven more years.
Mike Warburton, a leading accountant and tax expert, said the King would most likely be careful not to be perceived as avoiding tax. When Princess Diana died in 1997, her estate was reportedly worth around £21million but around £8million was paid out in tax. The rest was split between her sons, William and Harry.
Mr Warburton said: ‘The King, then Prince of Wales, was keen to be paying the right tax due.
‘As monarch, he will not incur any death duties on the Queen’s estate as it passes from sovereign to sovereign. He is entitled to make lifetime gifts to family members but if the King were to die within the seven year period, then it would be treated as if it were still part of the estate.’