Besides the obvious details of wedding planning, there are a few other key areas engaged couples usually must attend to before tying the knot—and they’re definitely not as fun as choosing a wedding dress. Most financial experts agree that credit-score talks and decisions like possibly merging your finances all should be addressed before the I do’s. And apparently, the same applies even if you’re royal. Along with the details of their May 19 wedding, Prince Harry and Meghan Markle must also decide what to do with their royal finances. But, reportedly, it doesn’t look like they’ll be combining bank accounts anytime soon.
Let’s first just take a moment to reflect on the concept of combining your bank account with that of a prince. Unfortunately for Meghan Markle, it doesn’t sound like she’ll be experiencing that staggering scenario anytime soon. It’s all due to a little thing called American income tax.
Following the announcement of the royal engagement, Prince Harry’s communications secretary, Jason Knauf, announced that the bride-to-be planned to become a U.K. citizen. "She intends to become a U.K. citizen and will go through the process of that, which some of you may know takes a number of years," he said in a statement. "She will retain her U.S. citizenship through that process."
Because Markle doesn’t plan to renounce her U.S. citizenship, she still must pay taxes to the United States Internal Revenue Service (IRS). And, if she’s sharing her hubby's grand wealth, that money would be subject to American taxes too.
“Even when married to a member of the British royal family, as long as she remains a U.S. citizen she will have to pay income tax," royal expert Marlene Koenig explained to The Sun. “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."
She continues, “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."
Therefore, it is believed to be highly unlikely for Markle to receive Prince Harry’s or the royal family’s fortune to avoid a huge IRS payout. According to The Sun, this could also give the IRS access to details of the royal family’s assets and estate that were previously undisclosed.
"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," says Koenig. "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!"
So, while Markle will soon be gaining a royal husband and in-laws, it doesn’t appear she’ll gain a royal bank account as well.
Somehow, we think she’ll be okay.