Princess Margaret leaves estate to her children

LONDON -- Princess Margaret left the bulk of her estate, valued at $11.4 million to her two children, who will face a large bill for taxes, the family said Tuesday.

Margaret, 71, the younger sister of Queen Elizabeth II, died Feb. 9.

After inheritance tax of 40 percent is paid and personal bequests made to friends and former staff members, Lord Linley and Lady Sarah Chatto will share about $6.75 million in cash and property from their mother's estate, Linley's office said.

The spokesman said Linley and his wife, Serena, who moved into Margaret's lavish suite at Kensington Palace when her health deteriorated, would move out now that the will had been finalized.

No decision has yet been made on the future use of the apartment, he said.

Queen Mother Elizabeth, who died March 30 aged 101, left her entire estate to the queen, who is not subject to inheritance tax.

Inheritance tax is payable at 40 percent above a $375,000 threshold, but the queen has been exempted on a rule that covers bequests from sovereign to sovereign or from the consort of a sovereign to a reigning monarch.

The queen inherited her mother's entire estate -- mainly works of art and other contents of her houses. The value of the estate was not announced, but British newspapers have estimated its worth at some $75 million.

in art, jewelry and race horses.

The queen has decided the most important of her mother's paintings and other art works should be held in trust for the nation as part of the Royal Collection.