Ballad of an inheritance (in the hands of the Royal Family)

BrickThe surprising will that was revealed 16 years ago in a notary's office in Ciutadella still fills online newspapers, magazines, and television news programs across Spain. The poisoned legacy that Juan Ignacio Balada, a Menorcan philanthropist without children, left to the Royal Family has not yet had the effect that Menorca hoped for. Princess Leonor and Infanta Sofía, the two daughters of the current King and Queen of Spain and the youngest members of the Spanish monarchy, have just renounced their share of the inheritance, but the future of the assets remains uncertain. This is especially true for the small palace on the curiously named Plaça Joan de Borbó, where Balada died on November 18, 2009, at the age of 69.

The enigmatic figure, who at the time of his death owned nine properties, some stocks, a collection of radios, and a piano, bequeathed half of his estate to the then-Prince and Princess of Asturias and the eight grandchildren of the former King and Queen. The other 50% has been designated, as he wished, to create the Hesperia Foundation, which King Felipe chairs in an honorary capacity, to help facilitate youth education, job placement, the promotion of social projects, and the fostering of culture.

The letter recently sent from the Zarzuela Palace to the Ciutadella City Council confirms that both Leonor and Sofía "no longer have decision-making power over the fate of the small palace" where Balada lived, which, even today, remains closed, awaiting someone who can bring it back to life. The final decision rests with the other six grandchildren of the former king and queen, since the current king and queen, Felipe and Letizia, were the first to renounce their inheritance in 2010.

Ciutadella, in fact, needs a new nursing home. Just a month ago, the City Council announced that it will cede a 6,718-square-meter plot of land in the Son Blanc area to the Balearic Government for the construction of a center for the elderly. The project is urgent, since the renovation and expansion of the current municipal residence will not take place until the future nursing home is completed, so as not to leave users without service. In June 2021, the City Council already agreed in a plenary session to request the transfer of the property from the Royal Household, but the request, which only the People's Party (PP) voted against, has been ignored so far by the Royal Household, which has, however, kept the public informed of the progress made regarding the inheritance. The entire legacy was initially valued at €10,636,330.63. Almost half, €5,219,861, corresponded to the development company Adalab (Balada spelled backwards), which the Menorcan businessman managed alone and was headquartered in Barcelona. He also had €3,583,410.97 deposited in bank accounts and some shares. His assets in Ciutadella were valued in total at €1,833,058.10.

The mansion, the most valued asset

The most prized of his properties is the 555-square-meter mansion, which he commissioned in 1996 and where he lived for thirteen years until his death. He also owned the Bini Talaiot estate, which he often lent to the Salesians for youth summer camps and programs, and three other urban buildings. These include a three-story house in the central Plaça de Federico Pareja, a dilapidated building on Carrer de Gustavo Mas, and an eight-story apartment building on Carrer de Jerònia Alzina, just a few meters from the mansion, which is over 50 years old. The Royal Household, in fact, ordered its renovation to address the existing problems and took charge of collecting the monthly rent from the tenants, whom they have not evicted.

However, following Balada's wishes, a large part of his estate was quickly put up for sale at a market price slightly above three and a half million euros, double its theoretical appraised value. However, reality eventually prevailed, and the Royal Household had to adapt to the circumstances of each property, which has prevented it from acquiring the necessary liquidity to allocate more funds to social initiatives.

The Balearic Government is, for now, the one that has benefited the most from the inheritance. Notary fees and some debts carried by the businessman accounted for 803,335.21 euros, but the biggest bite has been taken by the Ministry of Finance, which, through inheritance tax, kept 3,300,000 euros, almost a third.

With so much to be gained, Menorca has yet to see many fruits of the legacy of its illustrious and unique resident. The one that has benefited most is the Menorca Foundation for People with Disabilities, which has received a €30,000 grant. This, along with another €80,000 from the Island Council, has allowed for the renovation of the historic and emblematic modernist pharmacy that his mother, Catalina Llabrés, acquired in 1926 in the heart of the Volta aux Voltaes. Thanks to this investment, the former pharmacy, which Juan Ignacio Balada managed after his mother's death, is now a must-see for tourists visiting the old town of Ciutadella, and has also become one of the Foundation's headquarters.

The will excluded his cousins María del Pilar and María del Carmen Arregui Llabrés, even though they were the ones who cared for the philanthropist in his final months, in the same small palace on Joan de Borbó Square. Although there was speculation that his only relatives might contest the will, they did not and accepted their exclusion. They explained that they remained by his side until his death because it was their "moral duty," since Balada's mother had taken them in for over a year after their father's death in the war.

Had the Royal Family not accepted the inheritance, Balada's legacy would have gone to the State of Israel. He stipulated this in his will, thus revealing his connection to the Grand Lodge of Israel. Surely, in this case and in the current international context, he would have still managed to generate considerable discussion after his death.