Why Prince Harry won’t share his money with Meghan Markle after wedding
Prince Harry is unlikely to share his fortune with Meghan Markle even after they get married, it has been reported.
The fact that Ms. Markle would have to pay American income tax on money she receives from Harry may explain any initial reluctance from the Prince to share his wealth with her.
The former Suits actress does intend to become British, but can only become a naturalized British citizen after she has lived in the UK for three years.
However, she will have to continue to pay tax to the US Internal Revenue Service for three years while living in Britain, unless she renounces her American citizenship.
By contrast, if Prince Harry decides to move to America to live with Meghan, he would not be expected to for file taxes in the UK.
Royal expert Marlene Koenig said: “Even when married to a member of the British royal family, as long as she remains a US citizen she will have to pay income tax.
“If she has investments in the United States, say for example a retirement plan that she set up, if that’s making money, she would have to pay up.
“This is even on money earned outside the United States. If she receives money from her husband or his family, and that’s considered income, she would have to pay income tax on that.”
Furthermore, if Meghan has more than £221,529 ($300,000) worth of assets in any given tax year, she will be expected to file a Form 8938 document revealing the detail of these assets.
Such a form may include foreign trusts and reveal details of the royal family’s estate that were previously undisclosed.
Ms. Koenig added: “Prince Harry receives no public funding.
“But it is possible there may be other family trusts that he receives money from – we don’t know officially if the Queen has set up trusts for her grandchildren – it is possible.
“It’s the same thing with some of the Queen Mother’s money, there were rumours that there were different trusts set up, but that’s not public information.
“With that sort of money, if Meghan’s name is on that account, most likely she would be dinged – that would have to be reported as income in the United States.
“You can be sure that those at Buckingham Palace and those who run the accounts are looking very carefully at all of this to make sure that the royal family’s money does not get reported to the IRS!”
Dianne Mehany, a tax lawyer at Caplin & Drysdale, warned: “It’s not outside the realm of possibility that a form filed by the wife of a royal would draw increased scrutiny.”
Source: EXPRESS CO UK
Tags: Prince Harry, Meghan Markle, Harry and Meghan