Paging Uncle Sam. The 2018 tax deadline is approaching—and, uh-oh, so is the 2019 arrival of Baby Sussex. As far as we know, Meghan Markle is still an American citizen, so what does that mean for her finances after the birth?
Apparently a lot, according to several money experts and a recent piece on Forbes.com.
Here's the scoop: When Meghan wed Harry, it was rumored that she might drop her American citizenship and embrace her new life as a Brit full-stop—i.e., she'd become a British citizen instead. (Cheerio, United States!) But, so far, it seems that nothing has changed in that department, which means when Baby Sussex is born, he (or she) will be a dual citizen—a cool characteristic, but one that comes with some heavy tax implications the royal family might not want to have.
What does that mean? In a nutshell, if Baby Sussex is gifted anything—royal assets, a trust, a rattle made of Welsh gold—it's subject to U.S. taxes, forcing Meghan and Harry to file a return to the IRS. In doing so, they will likely owe money to the U.S. government. But even more, they may be required to spill top-secret details about the royal family's finances in the process. Yikes.
The work-around? Meghan could still renounce, a process that can be costly, especially given that her net worth was around $5 million before she got hitched. (Anyone who has a net worth greater than $2 million is subject to an exit tax in addition to the typical government fees.)
What's a royal to do? Paging Queen Eliz—something tells us Harry and Meghan might need a bit of help sorting this one out.