A new and highly sensitive financial dispute has erupted behind palace walls, with Meghan Markle’s mother, Doria Ragland, allegedly at the centre of an emergency crisis that could force King Charles III into an unprecedented payout involving millions of pounds for Archie and Lilibet.

According to multiple high-level royal sources speaking to The Sun and The Daily Express, Doria has quietly but firmly pushed for formal, legally binding financial guarantees and inheritance provisions specifically for her grandchildren — provisions that would bypass standard royal protocols and potentially draw directly from private royal funds or trusts. The demand is said to centre on a “forgotten” clause in an old family trust agreement that Doria’s legal team claims entitles Archie (5) and Lilibet (3) to a significant share of future royal wealth as direct descendants of the sovereign.

The clause in question, reportedly drafted decades ago during Queen Elizabeth II’s reign, allegedly includes language guaranteeing financial security for “all lineal descendants” in the event of major changes to the family structure or succession arrangements. Doria’s representatives are said to argue that the Sussexes’ exit from royal duties in 2020, combined with the removal of taxpayer-funded security and the couple’s permanent relocation to California, constitutes such a change — triggering the clause and obligating the Crown to provide a lump-sum settlement or ongoing trust payments for the children.

Palace insiders describe the situation as “explosive.” One senior source told reporters: “Doria is not asking politely. She’s demanding formal recognition and protection for Archie and Lilibet that would essentially create a parallel financial stream outside the King’s direct control. It’s being treated as a legal and constitutional emergency because if this clause is enforceable, it opens a Pandora’s box — every future non-working royal descendant could make similar claims.”

King Charles is reportedly “deeply distressed” by the development. Sources say he has always intended to provide privately for his grandchildren but on his own terms and through existing family trusts — not through a publicly challenged legal demand that could set a dangerous precedent. Prince William is said to be furious, viewing the move as a direct attack on the monarchy’s financial independence and the principle that titles and privileges come with active service to the Crown.

Meghan and Harry have not commented publicly, but sources close to the couple insist Doria is acting independently and out of concern for her grandchildren’s long-term security. “This isn’t about Meghan or Harry reclaiming status,” one ally said. “It’s about making sure Archie and Lilibet are never left vulnerable if anything happens to their parents. Doria sees this as a mother’s duty, not a power play.”

Legal experts are divided on whether the “forgotten” clause is enforceable. Constitutional scholars note that royal trusts are governed by complex private agreements and parliamentary oversight, making any forced payout highly unlikely without Charles’s consent. However, the mere existence of the claim has forced emergency legal talks at the highest level, with the King’s solicitors reviewing old trust documents dating back to the 1990s.

Public reaction has been fierce. A YouGov poll conducted this week shows 59% of Britons believe Archie and Lilibet should receive no special financial guarantees from the Crown if their parents remain non-working royals, while 32% feel the children should be protected regardless of their parents’ status. The story has reignited the broader debate over the Sussexes’ titles, security costs, and whether the monarchy owes ongoing support to family members who have publicly distanced themselves.

The Palace has issued no official statement, maintaining its long-standing policy of silence on private family financial matters. But behind closed doors, the pressure is intense. One courtier summed it up: “This isn’t about money anymore. It’s about who controls the future of the institution — and whether the Sussexes can keep forcing their way back in through the children.”

For King Charles and Prince William, the demand represents a direct challenge to the monarchy’s slimmed-down, modern model. For Doria Ragland, it is reportedly about safeguarding her grandchildren’s future in a family torn apart by public feuds and private pain. As lawyers on both sides prepare for potential closed-door negotiations, the question looms: will this be resolved quietly — or will it explode into the biggest royal financial crisis in decades?