Her Majesty the Queen died on 8 September, aged 96, passing on her homes to the next monarch, her son King Charles III, but here's why he's exempt from paying tax on them…
RELATED: Prince William and Kate Middleton's friend loses royal job following Queen's death
Normally, any assets valued at more than £325,000 will be subject to a 40% taxation, but in a clause created in 1993, it was approved that 'sovereign to sovereign' transactions would be exempt from this.
WATCH: Prince William gives instructions to Princess Kate, Prince Harry and Duchess Meghan
The UK government website explains: "The Monarch is not legally liable to pay income tax, capital gains tax or inheritance tax because the relevant enactments do not apply to the Crown."
However, since 1993, the monarch has paid general tax voluntarily in the same way as everyone else does.
Charles has inherited his mother's homes
It's all change when it comes to the ownership of properties within the royal family since Her Majesty's death. Prince William, for example, has now become the Prince of Wales and the Duke of Cornwall, taking on the Duchy of Cornwall which is in epic property portfolio.
SEE: Prince Harry looks after his grandmother, the Queen, in unearthed photo
READ: Princess of Wales reveals Prince Louis' first words after being told about Queen's death
As well as Clarence House, where King Charles and the Queen Consort are living, other properties that will be owned and managed by William under the Duchy include developments in Newquay and Poundbury and most of the land which makes up the Isles of Scilly.
How the ownership of the Duchy works has been laid out in the rules: "A charter ruled that each future Duke of Cornwall would be the eldest surviving son of the Monarch and the heir to the throne."
Prince WIlliam has taken on the Duchy of Cornwall
The Duchy generates a £23 million-a-year income, and it was a role that Charles took very seriously, working to build sustainable and profitable estates.
According to the Court Circular, William spoke to the Duchy's finance committee via video link on Wednesday, as a mark of the commencement of his new and important role.
Like this story? Sign up to The Royal Life newsletter to get your weekly dose of royal lifestyle inspiration, from the must-see fashion moments to sneak peeks into royal homes and wellness news.
