Nearly £120,000 has been passed to the King’s portfolio of land, property, and assets after Oldham residents died without a will, a Guardian investigation has revealed.
An investigation by the newspaper alleges that the funds have been used to renovate private properties rented out for profit and treated like a ‘slush fund’.
Oldham Council confirmed that the details of people who died with estates worth a total of £119,721.86 were passed to the Duchy of Lancaster’s solicitors Farrer & Co from 2020 to 2022.
In most of the country, the assets of those who die without a will or next of kin are transferred to the Treasury, with the money spent on things like public services.
The process is known as ‘Bona Vacantia’ – Latin for ‘vacant goods’ and is the name given to ownerless property, which passes to the Crown by law.
Sign up to our newsletters to get the latest stories sent straight to your inbox.
The county palatine of Lancaster
Those in the area that made up the county palatine of Lancaster instead have their estates passed to the King’s Duchy of Lancaster.
According to the Duchy’s website, the palatine dates back to 1351, when Edward III made Henry Grosmont the first Duke of Lancaster.
The area includes much of Greater Manchester, Liverpool, and Lancashire.
In Oldham borough, the area stretches out as far east as Lees – meaning those on the eastern edges of the modern Oldham borough, such as in Saddleworth, are not subject to the legal quirk.
The Guardian investigation, published on November 23, showed that the modern Duchy of Lancaster estate, which is exempt from capital gains tax, income tax, and inheritance tax, has collected more than £60 million in funds over the last 10 years across the area.
While the Duchy had claimed that the ‘Bona Vacantia’ estates were donated to charities, internal documents seen by the national newspaper appear to contradict this, the report alleges.
The Oldham Times has not had sight of these internal documents.
The Guardian investigation claims that the funds are being used to finance the renovation of properties rented out for profit.
When contacted by The Oldham Times, the office of Greater Manchester Mayor Andy Burnham referred to a statement given to The Guardian.
In his statement, the mayor called for a public consultation over the way the money is collected, adding that he thought it was ‘a bizarre remnant of feudal Britain’ and a ‘silent mechanism of levelling down’ which is ‘redistributing wealth in the wrong direction’.
Follow The Oldham Times on Facebook, Instagram, Twitter, TikTok, YouTube, and Threads.
Government confirms legal quirk
The Government Legal Department confirmed to The Oldham Times that it does not administer the estates of people living within Oldham, with responsibility instead given to the Duchy.
A representative said: “The Government Legal Department does not administer the estates of deceased people who resided within the boundaries of the royal duchies of Lancaster and Cornwall.
“Oldham, Greater Manchester, falls within the Royal Duchy of Lancaster. Farrer & Co acts for the Duchy of Lancaster in bona vacantia matters and further information and contact details for Farrer & Co can be found on their website.”
Duchy says it ‘actively supports local community initiatives’
A spokesperson for the Duchy of Lancaster said they could not comment on the Oldham figures, and provided a copy of the statement sent to The Guardian last week.
The statement reads: “It is a long-standing principle of UK law that property or goods cannot remain ‘ownerless’. Responsibility for such assets, referred to as ‘bona vacantia’, is transferred to HM Treasury and in the County Palatine revert to the Duchy of Lancaster.
“From monies received as a result of bona vacantia, the Duchy of Lancaster makes an allocation to the ‘late claims fund’ to ensure that any claims received up to 30 years following the administration of an estate can be met.
“The cost of administering bona vacantia and any costs associated with the upkeep of public buildings and those of architectural importance, is also deducted.
“The balance is allocated between the Duchy of Lancaster Benevolent Fund, the Duke of Lancaster Housing Trust and Jubilee Trust, three charities set up by the late Queen.
“These charities were established after Queen Elizabeth decided that bona vacantia income should no longer benefit the Privy Purse.
“All three charities actively support local community initiatives, social housing and historic restoration across the Duchy of Lancaster estates.
“On accession to the throne, His Majesty The King reaffirmed that money from bona vacantia should not benefit the Privy Purse, but should be used primarily to support local communities, protect the sustainability and biodiversity of the land and preserve public and historic properties across the Duchy of Lancaster estates.
“This includes the restoration and repair of qualifying buildings in order to protect and preserve them for future generations.”
If you have a story, I cover the whole borough of Oldham. Please email me at jack.fifield@newsquest.co.uk.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel